KSEB’s decision not to change doesn’t bode well for its future

There are institutions that won’t change and also won’t make other change for the better. Public sector institutions are at the forefront of such institutions. In this the Electricity Board and KSRTC are not only inefficient but are hell-bent not to change itself. We had reported about how the Rs.28,000 crore financial revival scheme, which was formulated to save the KSEB from its present crisis, was dumped.

This rescue package was a good opportunity to save the KSEB, which was reeling under financial lost for the last twenty years. It contained many reforms. The reasons for the continuous loss for the institutions are many. If expenses are higher than the revenue, then any institution will go into loss. If all the avenues of revenue are calculated, the board received Rs.18,500 crores every year. However, the expenses are Rs.19,700 crores. Only if an extra Rs.1200 crores are generated can the board tally its losses. The board’s total loss now stands at more than Rs.15,000 crore.

It is in this crisis situation that the board’s bigshots stalled the financial revival scheme with the help of employees.

KSEB is at the front when it comes to the cost of electricity distribution. The working expenses is also high. As there is a surplus of employees, the cost for that too is exorbitant every month. Increasing the hydro power electricity together with using non-conventional sources of power in huge amounts could lead to benefits. Transmission loss is also a major challenge to the board. For this to stop, the distribution must be made efficient.

Even if the dues are all raked in, the revenue deficit can be lowered to an extent. The financial structure of the board can be made healthy by scientific restructuring of the work at many sections. However, for the financial scheme to work out, the employees must cooperate fully. The CMD who tried to make that happen was ousted by protests, for which the government too supported. After the two high officials who spearheaded the rescue package left the posts, the scheme got ditched.

There have been many reforms in the sector of production and distribution of electricity in the country. However, the KSEB is adamant that no reforms must take place here. Even in the smart meter, which is beneficial to the consumer, the board fails to take a unanimous decision. When the unions are having the word on these things, the board stands helpless.

According to the state’s electricity regulatory board data, there are six thousand employees in surplus. If smart meter is implemented, four thousand employees including meter readers, billing staff etc. can be redeployed to other sections. The salary expense will also be reduced in the future.

The people wished that the KSEB do not follow in the footsteps of KSRTC. When public sector institutions run into financial crisis because of mismanagement, it is the people who must take the burden. The unions must realize that they have a future only if the institution remans healthy. KSRTC employees have begun to realize this reality slowly. It is evident from their stance. However, the KSEB is stubborn in their stance. It might be because they know that it is an essential service.