Report of Indian Institute of Public Administration ... - Ministry of Power

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
• The restructured power Utilities have improved their performance over the
years. They, however, need to pursue the reform initiatives to further
improve their performance on a sustainable basis.
• At present, the Directors on the Boards of the companies are on full time
basis. There is need to strengthen the Boards by inducting professionals
with experience and expertise from the fields of Power Engineering,
Management, and Finance, etc., as non-functional directors.
• The Reforms Cell, originally created to pursue the reform initiatives in the
power sector, has been closed and the Chief Engineer (Regulatory Affairs)
has been entrusted with the responsibility of looking after the residual
activities. There is a need to establish a high level planning and
monitoring agency at Government level to oversee the implementation of
reforms. The agency must have the support of an expert group, comprising
of experienced professionals.
• Action needs to be taken to develop competent cadre of professionals to
hold senior positions in the Utilities. Till such time, outside personnel,
with adequate experience, can be inducted on contract basis to the top
level positions relating to Finance, Human Resources, Information
Technology, etc.
• The selection of the personnel to hold the positions of directors in the
Utilities is generally guided by political considerations. There is a need to
establish a clear and transparent selection process so that competent
professionals, having adequate experience, are inducted to these vital
positions.
• The functional directors in the Board need to be given autonomy to
operate and take decisions independently on the subjects allotted to them.
Only policy issues need to be brought before the Board.
• There is need to delegate authority and responsibility to the
managers/officers at all levels. This would help in fixing accountability
and also enhance the scope for developing managerial skills. It is an
essential ingredient of an institution-building process.
• The DISCOMs have not been granted full autonomy. Though separated
from APTRANSCO more than five years ago, these are still operating
under the directions and guidance of APTRANCO. These DISCOMs are
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