After over a decade since Orissa pioneered power sector reforms in the country, the state is struggling to stabilise the process. A cause for worry is that the state government itself seems reluctant to put in place the reform process.
The state government owns the Orissa Power Transmission Corporation Ltd (OPTCL) and the Orissa Hydro Power Corporation Ltd (OHPC), two key players. However, the way the two utilities are being managed has become a matter of concern.
The Orissa Electricity Regulatory Commission (OERC) had to give few tips to the state government on the management of these utilities. OERC chairman BK Das, in a letter dated January 7, 2008, advised chief secretary Ajit Kumar Tripathy to improve the efficiency of the two utilities. ??OHPC and OPTCL are required to act and manage their affairs effectively as leaders in their segment of the business. Allowing transmission projects to languish for many years ranging from 5 to 10 years by OPTCL, can have serious deleterious effect on the entire sector. Hydro-power being the most important source of power in the state, the operations of OHPC needs to be extremely efficient.??
During the last 10 years, the government has appointed as many as 10 chairman-cum-managing directors (CMD) in OHPC. Worse, the appointments are for part-time CMD. In fact, the secretary, energy, is doubling as CMD of OHPC. The case of OPTCL is no better.
Till now, CMDs have functioned without any accountability. Many of them have even squandered company money to buy swanky cars, fancy laptops and fashionable cell phones besides doling out largesse to their near and dear ones, sources alleged. This has ruined the work culture in OHPC as there is chaos in cadre management. The deployment of manpower, cadre fixation and anomaly in the pension policy, too, has caused heartburn.
Frustrated with the situation, the Orissa State Electricity Corporations Engineers? Association has written to the governor seeking dismissal of the government for inefficiency in handling the affairs of the power sector. Ramesh Chandra Satpathy, an OHPC union leader, has filed a petition with the OERC challenging OHPC’s annual revenue requirement and tariff. The revenue requirement was not realistic as there has been revenue loss due to gross mismanagement of the affairs of the company, says Satpathy. He alleged that the government was deliberately not appointing a full-time CMD and full-time director finance in OHPC with the intention of interfering in the company?s affairs.
Satpathy?s allegations are not far from truth. The government is yet to appoint a full-time CMD for OHPC. The OERC has now written to the government to ensure continuity in the post of secretary to the department of energy and CMD of OPTL and OHPC.