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Karnataka Power Reforms - Corporatization and
Privatization |
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- During the transition period, KPTCL and other utilities will
be given maximum autonomy to manage their businesses along their commercial lines. The
Boards of these companies will be reconstituted so that at least half of the directors
will be persons from outside the government and who are having expertise in technical,
managerial, financial and administrative matters. The chief executives of these companies
will be appointed on tenure basis. Appointment of senior managers will be based on merit
and not seniority; if necessary professional and managerial personnel will be drawn from
outside the companies. Incentive systems rewarding risk-taking, innovation andefficiency
will be implemented for all the staff including senior managers and executives.
- Government recognizes that privatization of distribution and
generation is not an end per se , but a means to achieve better efficiency and to mobilize
resources required for development and strengthening the system. It is hoped that the
Privatization of distribution will improve the quality of service to all consumers. This
is proposed to be carried out by disinvestment or outright sales. In either case,
transparent procedure will be followed. For this purpose, assistance of consultants will
be taken. The objective is to implement privatization of distribution at the earliest,
with aid and advice of the consultants being appointed for the purpose. Government of
Karnataka will take advantage of the experience in other statesof India, where the reform
process is in more advanced stage.
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