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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Consultancy International, M/s PricewaterhouseCoopers, M/s SMEC of
Australia in association with M/s TCS had been involved in the management
structures, training of personnel, human resources assessment and accounting
and financial support of the new companies.
Cross-liabilities between Government of Assam and ASEB were settled
through a Financial Restructuring Plan and the Government fulfilled its
commitments. The Government also took a policy decision for taking over the
unfunded liabilities of terminal benefits and GPF. The Government also
realised the importance of involving the unions and staff associations in the
restructuring process and a Tripartite Agreement was signed in December
2004. The concerns of the employees were taken care of. Restructuring was
implemented very methodically without any major hitches. ASEB was retained
as a holding company in the transition period for trading of power to be
supplied to the DISCOMs and giving support to the newly formed companies.
8.5 RECOMMENDATIONS
A study of the reforms and the restructuring gone through by Assam brings out
the following key points:
(a) A strong political commitment to carry through the process of reforms is
the primary driver for initiating and completing the process;
(b) A road map of the reform and restructuring in the form of policy,
objectives, strategy and proposed steps including financial restructuring
is necessary to give a clear vision as to how the various reforms
processes have to be taken up;
(c) If the new entities have to be financially viable, they should be enabled
to start on a clean slate;
(d) Funding needs to be provided for the cross-liabilities between SEB and
the Government with a clear provision of how the shortfall in the initial
years of operation will be met;
(e) Dialogue and agreements with the employees’ unions and engineers’
associations needs to be done carefully so that the employees become
willing partners in the reform process.
(f) The expertise, experience and advice of competent consultants,
particularly in the areas of corporatisation, organisational set-up,
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