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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
In achieving the above schedule, the role of Government of Gujarat/GEB was
very positive and proactive. The important milestones, as well as other
important supporting actions taken in the intervening period, are explained
below:
9.5 Promulgation of Gujarat Electricity Industry (Reorganisation and
Regulation) Act, 2003
On 12 May 2003, Government of Gujarat promulgated the Gujarat Electricity
Industry (Reorganisation and Regulation) Act, 2003, which, inter-alia, paved
the way for the Government of Gujarat to restructure the GEB. Specific
provisions relating to staff welfare issues, after their transfer, were incorporated
in the Act. These included emoluments, continuation of services and benefits of
accrued services after the transfer. Within three months of the promulgation of
the Act, Government of Gujarat ordered formation of four DISCOMs under the
Companies Act, 1956 to take over the electricity distribution activities in the
State.
9.6 Signing of Tripartite Agreement
The most noteworthy feature of the exercise is the total and active support GEB
could muster from its staff for its restructuring. With reform agenda of
Government of Gujarat and the enactment of Gujarat Electricity Industry
(Reorganisation and Regulation) Act, 2003, Unions and Associations in GEB
expressed apprehensions that if their services were privatised, there would be
an adverse impact on their service conditions, and likely retrenchments,
resulting in loss of employment. Government of Gujarat/GEB had, from time
to time, declared that such apprehensions were unfounded. However, with a
view to ensure smooth implementation of the policy and allay fears of the
employees, in the early stages of restructuring (in October 2003), Government
of Gujarat, GEB and six recognised unions and associations of GEB signed a
Tripartite Agreement which addressed the concerns of the staff to their
satisfaction. This resulted in active participation of the staff in the restructuring
process. The Tripartite Agreement is the cornerstone of smooth and seamless
transformation of GEB into seven distinct corporate entities
Effective Communication Strategy
GEB adopted an effective communication strategy in reaching all employees
and making them aware of the need for reforming the sector, aims and
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