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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Karnataka does not appear to have paid sufficient attention to this aspect,
which has resulted in continuation of the work culture as was existing prior to
the restructuring. The delay in integrating the staff with the new companies
also has adversely impacted the morale and motivation of the staff.
On the positive side, there have been several gains from the restructuring
exercise. These include:
• Financially viable and more competent organisational pattern of the
Utilities in place of the monolithic KEB;
• Increasing managerial supervision and control in areas like T&D losses
reduction;
• Decrease in cases of electricity theft;
• Progress in metering and billing (except for the agricultural sector);
• Improved consumer care and grievance redressal mechanism; and
• Additional investments for strengthening the network.
On the whole, the restructuring exercise in Karnataka could be regarded as a
success, both in terms of the process adopted as well as in terms of gains and
achievements made subsequent to the restructuring. But there is a need to take
forward the reform process further, by accelerating its pace of implementation.
3.13 WAY FORWARD FOR THE REFORM PROCESS
The most important factors required to accelerate the reform efforts in
Karnataka include the following:
A) Restoring the political commitment to the sector reform, for which
Ministry of Power must take the initiative. A national political
commitment on an acceptable power sector reform policy and agreement
on a Minimum Action Programme, to be implemented according to a time
schedule, should be in place.
B) The main reason for the poor financial performance of the DISCOMs is
the unmetered and unbilled power supply to the agricultural sector. This
issue needs to be tackled at the national level. There is also a need to
recover a reasonable tariff for the supply of electricity to the agricultural
sector, as determined by the KERC, without governmental interferences.
In particular, the creamy layer among the farmers must be required to
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