A CASE STUDY OF ORISSA POWER REFORMS

by: Akbar Kamal Anil Kasana Kumar Vivek Aakash Tiwari

Introduction
The Electricity(supply) Act,1948. Industrial Policy Resolution,1956. Difference between demand & supply. Reform Process.

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Orissa State Electricity Board

Performance of OSEB. (Large transmission & distribution losses.) (Orissa Power Deficit) (Billing & collection) HRM in OSEB.

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Steps towards Reformation

Restructuring of OSEB. Formation of OHPC & GRIDCO. Invite private sector participation. Start competitive bidding for power generation. Electricity tariffs at the bulk power, transmission & retail levels were reformed.

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GRIDCO
(Grid Corporation of Orissa) Formed on 20,April 1995. Perform the task of Transmission & Distribution. Agreement with GOO. Divided Orissa into four geographical distribution zones.

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Critical Issues at GRIDCO..

Surplus of employees. Skill shortage among workers. Lack of specialized professionals. Access of temporary works. As in the words of MD of GRIDCOEveryone seems to think this to be a charitable organization. I want to change it.
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Steps taken by GRIDCO

Gained political support. Staff Rationalization Plan. Ensuring support from employees. Creation of new departments. Management of surplus staff. Regularization of temporary staff. Campaigning by Management.
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Questions?????
1.)What factors prevented SEBs from fulfilling the electricity needs of the country?

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Contd. 2.) What did the power sector reforms that started in December,1991 seek to achieve?

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Contd..
3.) Evaluate the status & role of HRM in OSEB before privatization. In what ways did it change after GRIDCO come into existence?

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Contd. 4.) What was the HR effect of privatization on human resources in GRIDCO?

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Contd 5.) What does the case suggest about the interaction between strategic planning & HRP?

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Contd..
6.) Critically evaluate the VRS of GRIDCO for managing employee surplus. Given the culture of the firm, what optional strategies would you suggest to GRIDCO for managing surplus employees?

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Contd.
7.) The strategy for managing the surplus employees of a firm i.e. going through a major transition such as privatization makes the difference between success & failure. Comment in the light of the case.

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