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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
power stations in the State and faced no problems of management. The
transmission company has generally being running in an efficient manner
and transmission losses in the system are not very high. There have been
significant achievements in the reduction of the distribution losses after the
DISCOMs came into existence.
• In the integrated set up (APSEB), inadequate investments were made on
development of transmission and distribution network as priority was
always accorded to the generation segment. Now the companies can
independently plan and implement their investments. In APSEB, project
finances, received from the funding agencies for the transmission and
distribution networks, were often getting diverted to the generation
segment. In the present set-up, there is no scope for such a contingency.
• APSEB was functioning more or less like a Government department with
little or no commercial orientation. The new corporate bodies can bring in
more commercial focus in their functioning.
• It has become easier for the DISCOMs to obtain project approval, sanction
of estimates/funds because of the existence of local corporate headquarters.
1.3.4.2. Deficiencies
The deficiencies in the organisational structure in Andhra Pradesh power sector
are:
• DISCOMs have not been accorded full autonomy. These companies are
still functioning under the directions and guidance of APTRANSCO.
• There is a need for clear-cut delegation of powers and authority to different
levels of managers/officers. At present, almost all powers and authority rest
with the corporate headquarters, as was the case with the erstwhile APSEB.
• Not much of accountability and responsibility are assumed by the fieldlevel
officers since adequate powers and authority have not been delegated
to them. Such an environment is not conducive for the development of
managerial skills in the individuals, who have to provide quality output in
their day-to-day operations. Poor quality of output not only hampers the
progress but also eventually affects the performance of the company.
• The board of directors of the restructured entities are appointed by the
Government, which holds 100 per cent shares in these companies. Many a
time, the selection is not based on the knowledge and competence of the
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