A case study of odisha power reforms

1. A Case Study of
Orissa Power Reforms
Designed Presented by
Anoop TS

2. 1992 : Government of Orissa, OSEB and the World Bank discuss
the issues and a variety of possible
solutions to Orissa’s fundamental problems.
1993 : Government of Orissa’s commitment to power sector
reform to the World Bank.
1994 : Orissa’s Council of Ministers formally approve the reform
program.
1995 : Change in government after the elections and the new
government endorses the reform program
1995 : Bombay Suburban Electricity Supply Company selected to
manage the distribution in the Central
1996 : Signing of the Corporatization agreements by the
Government of Orissa with the two new utilities.
GRIDCO and OHPC.
Timeline

3. Political will and support
Creating a legal structure conducive to
privatization
Managerial conviction to carry through the
reform process
Some cushioning effect to the pains and
uncertainties of privatization
Terminal benefits and social security
Extensive training for skill upgradation and
changing mindset
Significant learnings are

4. What Factors prevented state electricity boards from fulfilling
the electricity needs of the country?Lack of commercial orientation and conflicting objectives.
Adverse capital structure.
High transmission and distribution losses.
Unmanageable size and monolithic structure.
Unrealistic pricing policy resulting in a skewed tariff structure.
Poor billing and collection.
Bad quality of service due to want of repair and maintenance activities and lack of
spares.
Manpower related problems like over staffing, low skill levels and lack of training. Low
motivation levels coupled with low accountability.
Misuse of the statutory power of the State Governments to issue directives to SEBs
to the extent that the political imperatives often
overriding the commercial consideration.

5. What was the HR effect of privatization on human resource
in GRIDCO?
Surplus labour is mainly amongst the technical unskilled grade.
There tends to be excess staff in the urban divisions and staff
shortages in the rural divisions
There is a skill shortage amongst linesmen (skilled workers whose
principal tasks involve line inspection, general repair
and construction activities),with each zonal business requiring training
of staff in this category.
There are skill shortages in some divisions, which can only be corrected
through recruitment.

6. Evaluate the status of role in HRM in OSEB before privatization. In what ways did
it change after GRIDCO come into existence ?
Pension
Promotions
Designating Engineers as Managers
Creation of new department
Management of Surplus staff