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

7.2 Steps to be Taken by the State Governments
National Report (Vol.-II)
Study on ‘Impact of Restructuring of SEBs’
7.2.1 Review the current status of restructuring (as brought out in Chapter-6 of the
Report) and analyse the findings and recommendations for taking forward the
Reform Process.
7.2.2 Formulate Detailed Policy Statements (DPS) on the future strategy for power
sector development with targets and milestones, with the approval of the State
Cabinet. [Para 6.2]
7.2.3 Reactivate the High-level Empowered Committee under the State Chief
Secretary to guide and direct the reforms process. This committee should issue
periodic comprehensive progress reports against set targets. [Para 6.7.4]
7.2.4 Establish a comprehensive communication strategy as recommended in this
Report, with the help of professionals in the field and involve Utilities, media,
civil society, eminent citizens and local bodies in its implementation.
[Para 6.3.12]
7.2.5 Evolve a forward looking and effective HR policy, which would motivate the
staff of the Utilities for higher efficiency and would also assure them of their
terminal benefits and career prospects. Further, initiate action to review the
staff norms, and strengthen the managerial cadres, as required. [Para 6.5]
7.2.6 Review and update the FRPs with specific commitments and targets to bring
about financial turnaround of Utilities and include them in Medium Term
Expenditure Framework (MTEF), performance budgets and Annual Plan
discussions. [Para 6.6]
7.2.7 Create a healthy convention of invariably implementing the directions and
orders of ERCs and resolving disagreements, if any, through a consultative
process. Also, extend full autonomy and assistance to Regulators in matters of
organisation, staff complement, appointment of staff, funds, infrastructure
facilities, etc., subject to an overall budget ceiling. [Para 6.8.2 (b)]
7.2.8 Initiate action to establish the PSRF expeditiously, in consultation with the
Ministry of Power and the respective Regulatory Commissions. [Para 6.9]
7.2.9 Ensure greater autonomy and efficiency to the board of directors of the Utilities
by inducting at least 50 per cent directors from a panel of experts in relevant
disciplines. Also induct adequate functional directors into the boards and desist
from inducting political appointees to the boards. [Para 6.11.2]
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