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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
from the agricultural sector, achieving more significant reductions in AT&C
losses, etc. Most of these failures could be attributed to lack of political
support, inadequate managerial and functional autonomy, non-integration of
the staff with the new companies and the continuing KEB work culture, and the
omission of the Government to grant the required corporate independence to
the DISCOMs. In particular, a factor responsible for the deceleration in the
reform efforts was the lack of political commitment and support to take
forward the sector reform after the initial phase. This is attributed to changes in
Government and consequent changes in policies and priorities.
In order to achieve the objectives of restructuring KEB there is a need to
reorient the reform policy and accelerate the reform process. Further, the
DISCOMs need to be made more autonomous by delegating additional powers
to them, distancing them from (political) interferences and influences, and by
reconstituting their boards of directors. There is also need to expeditiously
integrate the staff of KEB, now working on the rolls of KPTCL, with each
DISCOM.
3.12 LESSONS LEARNT FROM THE KARNATAKA EXPERIENCE
The most relevant lesson arising from the Karnataka experience is that political
commitment is the most important driver for reforms. In its absence, there are
very little chances for a drastic turnaround in the politically sensitive power
sector. Even as the policy evolved by the State Government for the reform was
focussed and efficient and the procedure adopted was transparent and well
planned, the final results achieved so far have been sub-optimal. This could
mostly be attributed to lack of political will and commitment once the
restructuring was carried out, but before the new Utilities reached a stage of
stabilisation. Political commitment and support would have to be sustained till
the reform objectives are fully achieved.
Another lesson arising from the review is that there must be one or more strong
and dedicated champions for the reform at the top level in the Government,
who must act as major catalysts for the reform efforts. Like in the case of
political commitment, the support of the champions for the reform has also to
be enduring.
Yet another important lesson is the need to get the ‘buy-in’ of the staff of the
organisation to implement the reform. Unfortunately, Government of
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