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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
pay for the power consumed by them; the possibility of linking the
‘support price mechanism’ and Government procurement of grains, etc.,
with mandatory metering and payment for the electricity consumed, might
be considered in this regard.
C) Partial divestment of Government’s shares in the restructured
companies, as also in KPCL, say 26 per cent, to the public with a small
portion reserved for the interested employees of these companies, will
bring in better corporate culture and accountability. A strategy for this
must be carefully and expeditiously worked out.
D) A Human Resources Development (HRD) Plan for the integration of the
KEB/KPTCL staff with the new companies and for their career
advancement (with adequate incentives to opt for the new companies)
must be implemented early. The restructured companies must have the
freedom to evolve their own performance-linked wage structures within
the overall policy guidance of the State Government. Staff norms must be
revised and shortages of technical and managerial staff must be overcome
by appropriate measures.
E) There is a need to re-establish a powerful and innovative communication
strategy to educate all stakeholders, especially the public, all categories of
consumers including the farmers, and the staff of the companies, about the
essentiality and overall benefits of the reform.
F) The restructured companies must be granted full functional and financial
autonomy required for managing their affairs on commercial lines. The
practice of appointing the managing director of KPTCL as the common
chairman of DISCOMs must be discontinued.
G) Action must be taken to develop a competent cadre of professionals to
man senior positions in the restructured companies. Meanwhile, suitable
outside personnel may be inducted at top levels of the restructured
companies on contract basis, including from CPSUs, if available.
H) A policy must be established for the appointment of 50 per cent
independent directors on the boards of directors of the Utilities by
professionals with wide experience and expertise in the fields of power
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