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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
December 2004, vesting of properties, etc., from ASEB to the State
Government and re-vesting the same in the new companies, and transfer of
personnel. The opening balance sheets of the five companies were attached to
the Transfer Scheme order.
Key stakeholders in the reform process were staff, engineers and their unions
and associations. A Tripartite Agreement between Government of Assam,
ASEB and the recognised unions was signed on 9 December 2004. On 31
March 2005, all the existing employees, who had given option, were
transferred to the five new companies. Managing Directors of the new
companies were appointed in February 2005. It was a vital step in which the
willingness and positive response of the employees was obtained. There was an
assurance there would be no retrenchment; terms and conditions on transfer to
new companies would not be inferior to their existing conditions and payment
in respect of pension and retirement benefits committed. The Government took
over the unfunded liabilities of terminal benefits and GPF of about Rs 1,470
crore on its net present value.
ASEB functioned like a holding company and its chairman was the chairman of
the new companies also. It made bulk purchases of electricity from outside
Assam as well as from APGCL and supplied to DISCOMs.
The Government of Assam constituted the multi-member Commission with a
chairman and two members in February 2005.
8.3 CURRENT STATUS
The restructured entities are in a period of transition and 2005-06 was really the
first year of their independent operation. The commercial and financial
functions have not yet become independent due to shortage of qualified
personnel. There is a common head of the accounts department. Tariff
submissions to the Regulatory Commission had been mostly made with the
help of consultants.
The companies have prepared their plans for capacity addition, in generation,
transmission and augmentation in distribution areas. R&M scheme financed by
PFC of Lakwa (Units 2 and 5) and Namrup TPS (Units 3 and 4) may add a
capacity of 93 MW in about a year’s time. Assam has a share of 300 MW in the
500 MW Bongaigaon TPS of NTPC expected in Eleventh Plan.
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