023 Tacr 01 Vol 04

Technical Assistance Consultants Report
Project Number: 41614

March 2012
India: Capacity Development of the Assam Power

Sector Utilities
Prepared by
Mercados Energy Markets International
Madrid, Spain
in association with North Delhi Power Limited (NDPL)
New Delhi, India
For Assam State Electricity Board (ASEB)
This consultants report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents.
ASSAM: CAPACITY DEVELOPMENT OF THE ASSAM
POWER SECTOR UTILITIES TA NO. 7378 IND
FINAL REPORT: VOLUME IV

DISTRIBUTION
ASIAN DEVELOPMENT BANK
ASSAM STATE ELECTRICITY BOARD
Prepared by:
MERCADOS ENERGY MARKETS INTERNATIONAL
Together with:
NORTH DELHI POWER LIMITED (NDPL)
March 2012
MI1190
MERCADOS EMI - NDPL
FINAL REPORT
TABLE OF CONTENTS
I BACKGROUND ................................................................................................ I-12!

II CORE BUSINESS .......................................................................................... II-13!
1.! AS-IS ANALYSIS, BENCHMARKING PROCESS AND STANDARDS ................................ II-13!
1.1.! KEY OBJECTIVE OF AS-IS ANALYSIS .................................................. II-13!
1.2.! INTRODUCTION ............................................................................. II-13!
1.3.! PROJECT PERFORMANCE MEASUREMENTS ............................................ II-14!
1.4.! INVESTMENT PROPOSALS ................................................................ II-17!
1.5.! ATC& C LOSSES ........................................................................... II-19!
1.6.! AS-IS ANALYSIS ........................................................................... II-20!
1.7.! ENERGY ACCOUNTING ..................................................................... II-21!
1.8.! ORGANISATIONAL STRUCTURE .......................................................... II-21!
1.9.! POWER PROCUREMENT.................................................................... II-23!
1.10.! COMMERCIAL: METERING, BILLING, AND COLLECTION ........................... II-23!
1.11.! DISTRIBUTION OPERATIONAL PROCESSES .......................................... II-29!
1.12.! BENCHMARKING PROCESS AND STANDARDS ........................................ II-29!
2.! GAP IDENTIFICATION AND ANALYSIS .............................................................. II-37!
2.1.! ORGANISATIONAL STRUCTURE .......................................................... II-37!
2.2.! ENERGY ACCOUNTING AND AT & C LOSS MEASUREMENT ........................ II-37!
2.3.! POWER PROCUREMENT .................................................................... II-38!
2.4.! METER READING, INSTALLATION, BILLING AND COLLECTION................... II-38!
2.5.! DISTRIBUTION OPERATIONAL PROCESSES ........................................... II-39!
2.6.! PROCUREMENT PROCESS ................................................................. II-39!
3.! RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION PLAN .............................. II-40!
3.1.! SPECIFIC ACTIONS RECOMMENDED, BUDGET, AND EXPECTED IMPACT ........ II-40!
3.3.! IMPLEMENTATION IMPERATIVES AND ENABLERS .................................... II-52!
3.4.! RESPONSIBILITY FOR IMPLEMENTATION ............................................. II-55!
3.5.! PROPOSED PERFORMANCE MONITORING INDICATORS/CRITERIA ............. II-55!
4.! JORHAT PILOT PROJECT ............................................................................. II-56!
4.1.! BACKGROUND ............................................................................... II-56!
4.2.! MAJOR OBSERVATIONS ................................................................... II-57!
4.3.! JORHAT PILOT PROJECT KICK OFF..................................................... II-59!
4.4.! FIELD ACTIVITIES.......................................................................... II-59!
4.5.! HR: CHANGE MANAGEMENT AND COMMUNICATION CHANNEL .................. II-60!
4.6.! PROJECT OUTCOMES ....................................................................... II-61!
III ACCOUNTANCY AND FINANCIAL MANAGEMENT ....................................... III-63!
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution I-2
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1.! AS-IS ANALYSIS, BENCHMARKING PROCESS AND STANDARDS ............................... III-63!

1.1.! KEY OBJECTIVE OF AS-IS ANALYSIS ................................................ III-63!
1.2.! PROJECT PERFORMANCE MEASUREMENTS .......................................... III-63!
1.3.! ACCOUNTING FUNCTION ................................................................ III-63!
1.4.! FINANCIAL MANAGEMENT .............................................................. III-89!
2.! 10 YEAR BUSINESS PLAN ......................................................................... III-115!
2.1.! GAP IDENTIFICATION AND ANALYSIS ............................................. III-115!
2.2.! BENCHMARKING PROCESSES AND STANDARDS .................................. III-115!
2.3.! APDCL MULTI-YEAR INVESTMENT PLAN ........................................ III-115!
2.4.! ACTION PLANS .......................................................................... III-116!
2.5.! RESULTS (DETAILS INCLUDED IN ANNEX VIII 2)............................ III-119!
3.! FINAL FINANCIAL POLICY AND STRATEGY FOR THE IMPROVEMENT OF SPPSS AND RRESIII-120!
3.1.! SPPSS/IBDFS ........................................................................ III-120!
3.2.! RRES ..................................................................................... III-126!
IV APDCL-HUMAN RESOURCE MANAGEMENT ................................................ IV-129!
1.! KEY OBJECTIVE OF AS-IS ANALYSIS ............................................................IV-129!
2.! PROJECT PERFORMANCE MEASUREMENTS .......................................................IV-130!
3.! ASSUMPTIONS ......................................................................................IV-134!
3.1.! INTERNAL ................................................................................. IV-134!
3.2.! EXTERNAL ................................................................................. IV-135!
4.! AS-IS ANALYSIS ...................................................................................IV-136!
4.1.! ORGANISATIONAL STRUCTURE ....................................................... IV-136!
4.2.! HR MANAGEMENT AND POLICIES ................................................... IV-138!
5.! BENCHMARKING PROCESS AND STANDARDS ...................................................IV-149!
5.1.! REVIEW OF NATIONAL BEST PRACTISES .......................................... IV-149!
5.2.! REVIEW OF INTERNATIONAL BEST PRACTISES ................................... IV-150!
6.! GAPS IDENTIFICATION AND ANALYSIS ..........................................................IV-151!
6.1.! AS-IS ANALYSIS SUMMARY .......................................................... IV-151!
6.2.! KEY CONCERNS OF STAKEHOLDERS.................................................. IV-152!
7.! RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION PLAN ............................IV-152!
7.1.! SPECIFIC ACTIONS RECOMMENDED, BUDGET, AND EXPECTED IMPACT ..... IV-153!
8.! IMPLEMENTATION IMPERATIVES AND ENABLERS ................................................IV-159!
8.1.! HRSC ...................................................................................... IV-159!
8.2.! RESPONSIBILITY FOR IMPLEMENTATION .......................................... IV-160!
8.3.! PROPOSED PERFORMANCE MONITORING INDICATORS/CRITERIA .......... IV-160!
V INFORMATION TECHNOLOGY ...................................................................... V-160!
1.! KEY OBJECTIVE OF AS-IS ANALYSIS ............................................................. V-160!
2.! PROJECT PERFORMANCE MEASUREMENTS ........................................................ V-162!
2.1.! NETWORK DOWN TIME:.................................................................. V-163!
2.2.! APPLICATIONS DOWN TIME (IN HOURS): UNPLANNED APPLICATION DOWNTIME
CAUSES HAVOC AND GREAT EXPENSE ........................................................... V-164!
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2.3.! RECOVERY TIME OBJECTIVE - RTO ................................................... V-164!

2.4.! RECOVERY POINT OBJECTIVE RPO ................................................ V-165!
2.5.! IT USER SATISFACTION INDEX ........................................................ V-166!
2.6.! IT STANDARDS ............................................................................ V-167!
2.7.! POWER USAGE EFFECTIVENESS (PUE) .............................................. V-168!
2.8.! EMPLOYEES / DESKTOPS RATIO ....................................................... V-169!
3.! AS-IS ANALYSIS .................................................................................... V-169!
3.1.! INVENTORY ................................................................................. V-169!
3.2.! APPLICATIONS ............................................................................. V-170!
3.3.! NETWORK CONNECTIVITY ............................................................... V-171!
3.4.! DATA CENTRE INFRASTRUCTURE ...................................................... V-171!
4.! BENCHMARKING PROCESS AND STANDARDS (REVIEW OF NATIONAL AND INTERNATIONAL BEST
PRACTICES) ............................................................................................... V-172!
4.1.! REFORM PROCESS AN AGENT FOR TRANSFORMATION ......................... V-172!
4.2.! IT INFRASTRUCTURE IN THE POWER DISTRIBUTION UTILITIES OF INDIA .. V-172!
4.3.! REVIEW OF INTERNATIONAL BEST PRACTISES ..................................... V-177!
5.! GAPS IDENTIFICATION AND ANALYSIS ........................................................... V-178!
5.1.! GENERAL OVERVIEW OF IT GAPS ..................................................... V-178!
5.2.! SPECIFIC GAPS OF APDCL ............................................................. V-179!
6.! RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION PLAN ............................. V-179!
6.1.! SPECIFIC ACTIONS RECOMMENDED, BUDGET, AND EXPECTED IMPACT ....... V-179!
6.2.! IMPLEMENTATION IMPERATIVES AND ENABLERS ................................... V-182!
6.3.! RESPONSIBILITY FOR IMPLEMENTATION ............................................ V-184!
6.4.! PROPOSED PERFORMANCE MONITORING INDICATORS/CRITERIA ............ V-185!
VI SUMMARY OF ACTION PLAN .................................................................... VI-187!
VII ANNEX OF CORE BUSINESS ................................................................... VII-212!
1.! SAMPLE MONTHLY REVENUE RETURNS REPORT FOR DIBRUGARH DIVISION AND FEEDER WISE
ENERGY LOSS REPORT. ............................................................................... VII-212!
VIII ANNEX TO FINANCE SECTION ............................................................ VIII-218!
1.! BRIEFING ON CAPITAL INVESTMENT & BUSINESS/FINANCIAL PLANNING ................ VIII-220!
1.1.! WORKSHOP ATTENDANTS .......................................................... VIII-220!
1.2.! PRESENTATION ....................................................................... VIII-221!
2.! 10 YEAR APDCL BUSINESS PLAN ............................................................ VIII-242!
2.1.! INTRODUCTION ....................................................................... VIII-244!
2.2.! SITUATIONAL ANALYSIS............................................................ VIII-246!
2.3.! BUSINESS PLAN SUMMARY ........................................................ VIII-249!
2.4.! SUB-APPENDIX A: CAPITAL INVESTMENT PLAN .............................. VIII-273!
2.5.! SUB-APPENDIX B: ANNUAL BUDGET SUMMARY FY 11-12 ................ VIII-277!
2.6.! SUB-APPENDIX C: DEFINITION OF PERFORMANCE INDICATORS ......... VIII-302!
2.7.! SUB-APPENDIX D: NOTES ON SALES PROJECTION........................... VIII-306!
3.! ANNEX TO FINANCIAL POLICY FOR THE IMPROVEMENT AND EXPANSION OF SPSS AND RRES
SECTION................................................................................................ VIII-307!
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IX ANNEX TO HUMAN RESOURCE ................................................................. IX-314!

1.! HRSC ROADMAP MPP ..........................................................................IX-314!
1.1.! CGM HR ROLE .......................................................................... IX-314!
1.2.! AUGMENTED HR AND TRAINING ORGANISATION ............................... IX-315!
1.3.! HIRING (APPOINTING) OF AUGMENTED HR AND TRAINING STAFF ........ IX-316!
1.4.! HR MANPOWER MODULE EXAMPLE FOR SUBDIVISION/ DISTRIBUTION .. IX-317!
1.5.! HRSC ACTION PLAN(S) .............................................................. IX-317!
1.6.! HRSC TOR ............................................................................... IX-319!
1.7.! OUTSOURCING ........................................................................... IX-320!
1.8.! PERFORMANCE APPRAISAL ............................................................ IX-321!
1.9.! SAMPLE ADS FOR CGM AND HR EXECUTIVE TRAINEES ........................ IX-322!
1.10.! TRAINING PROGRAM HR TRAINEES AND MANAGEMENT ...................... IX-323!
LIST OF TABLES
Table 1 - Distribution Loss considered for Tariff Calculation for 2008-09 & 2009-10 .................... II-14!
Table 2 - Investment proposals for LAEDCL, CAEDCL and UAEDCL ........................................... II-19!
Table 3 - Roles and responsibilities of the main managerial positions APDCL.............................. II-22!
Table 4 - Key parameters of international utilities .................................................................. II-35!
Table 5 - Collection efficiency among other International Utilities ............................................. II-36!
Table 6 - Circle Wise Defective Meters (December'10) ............................................................ II-38!
Table 7 - AT & C Loss and consumer mix in Jorhat Circle ........................................................ II-40!
Table 8 - Roles & Responsibilities ........................................................................................ II-50!
Table 9 - Line of action for successful implementation ............................................................ II-52!
Table 10 - Performance of Jorhat Circle ................................................................................ II-57!
Table 11 - Consumer Category and Units Billed ..................................................................... II-57!
Table 12 - As-Is-analysis of accounting system: APDCL ........................................................ III-63!
Table 13 - Financial Risks Classification Example ................................................................ III-100!
Table 14 - Power Scenarios in Bhiwandi - Before and after Franchising .................................. III-121!
Table 15 - Salient Features of the Bhiwandi DF Model.......................................................... III-122!
Table 16 - Organization structure As-Is analysis ................................................................. IV-136!
Table 17 - HR management and policies As-Is analysis ........................................................ IV-138!
Table 18 Customers/Employee International Standards ....................................................... IV-151!
Table 19 - Examples of RTO tiers....................................................................................... V-165!
Table 20 - Possible RTO tiers ............................................................................................ V-165!
Table 21 - Server configurations........................................................................................ V-169!
Table 22 - Printers configuration ....................................................................................... V-170!
Table 23 - APDCL Capital Investment Plan FY 2012-2013 in Rs Lakhs .................................. VIII-218!
Table 24 - Growth rates in sales for major categories of customers ..................................... VIII-247!
Table 25 - APDCLS Comparative Sales Projection by Consumer Category in MU (FY12-13 and FY21-
22) ............................................................................................................................ VIII-247!
Table 26 - Proposed Plan Outlay for APDCL under APDRP for FY 20 11-12 ............................ VIII-274!
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Table 27 - Key NLCPR Schemes...................................................................................... VIII-274!

Table 28 - RE (MNP) Scheme ......................................................................................... VIII-275!
Table 29 - Electrification under RGGVY Scheme ................................................................ VIII-275!
Table 30 - APDCL Cost of Power ..................................................................................... VIII-281!
Table 31 - APDCL Interest, Loan Repayment and ROE ....................................................... VIII-289!
Table 32 - Comparative BST .......................................................................................... VIII-307!
LIST OF FIGURES
Figure 1 - Performance of APDCL: energy billed ..................................................................... II-15!
Figure 2 - Performance of APDCL: energy injected ................................................................. II-15!
Figure 3 - Performance of APDCL: billing, collection and overall efficiency ................................. II-16!
Figure 4 - Performance of Lower Assam Area: billing, collection and overall efficiency ................. II-16!
Figure 5 - Performance of Upper Assam Area: billing, collection and overall efficiency ................. II-17!
Figure 6 - Performance of Central Assam Area: billing, collection and overall efficiency ............... II-17!
Figure 7 - Organizational chart of APDCL .............................................................................. II-22!
Figure 8 - Simplified and normal New Connection Process ....................................................... II-24!
Figure 9 - Meter Reading and Bill Generation Process ............................................................. II-26!
Figure 10 - Collection and Disconnection Process ................................................................... II-27!
Figure 11 - Complaint Handling Process................................................................................ II-28!
Figure 12 - Fault repairing process ...................................................................................... II-29!
Figure 13 - AT & C Losses Comparative ................................................................................ II-34!
Figure 14 - Billing Efficiency Comparison .............................................................................. II-35!
Figure 15: Proposed Organizational Structure ....................................................................... II-51!
Figure 16 - Core Monitoring Group Organisation .................................................................... II-54!
Figure 17 APDCLs Organizational chart ........................................................................... III-90!
Figure 18 APDCLs budget control system ........................................................................ III-93!
Figure 19 - Mapping of ASEB's IT governance ..................................................................... V-162!
Figure 20 - Business value obtained from IT ....................................................................... V-163!
Figure 21 - Sources of Network Device Downtime ................................................................ V-164!
Figure 22 - Benefits obtained from IT customer satisfaction surveys ....................................... V-167!
Figure 23 - Power usage effectiveness ............................................................................... V-169!
Indra S.A. Evonik Energy India Pvt. Ltd.
Power Research and Development Consultants Pvt. Ltd
MERCADOS EMI - NDPL
NOTES ON THE TEAM
Mercados Energy Markets International, working in collaboration with the North Delhi Power Limited,
leads the consultant team.
In addition the following firms have provided experts for various components:
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Glossary
Acronym Full Name
ABC Aerial Bunched Cables
A/C Account
AMR Automatic Meter Reading
ATC Aggregate Technical and Commercial
SRS Software Requirement Specification
ADB Asian Development Bank
AEGCL Assam Electricity Grid Corporation Limited
AERC Assam Electricity Regulatory Commission
APGCL Assam Power Generation Corporation Limited
APDCL Assam Power Distribution Company Limited
ASEB Assam State Electricity Board
BIS Bureau of Indian Standard
BMS Building Management System
BPR Business Process Restructuring
Cape Capital Expenditure
CAEDCL Central Assam Electricity Distribution Company Limited
CBIP Central Board of Irrigation and Power
CEA Central Electricity Authority
CENPEID Centre for Power Efficiency in Distribution
CERC Central Electricity Regulatory Commission
CTPS Chandrapur Thermal Power Station
Ckt Circuit
CAIDI Customer Average Interruption Duration Index
CAIFI Customer Average Interruption Frequency Index
DC Data Centre
DoP Department of Power
DRUM Distribution Reform Upgrades and Management
DPR Detail Project Report
DR Disaster Recovery
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Acronym Full Name
Discom/Disco Distribution Company
EA Electricity Act 2003
ERC Electricity Regulatory Commission
ERP Enterprise Resource Planning
EHV Extra High Voltage
EHS Environment Health and Safety
ESP Electrostatic Precipitator
FE Front End
FTE Staff Full Time Equivalent
FY Financial Year
GAAP Generally Accepted Accounting Principles
GCC General Conditions of Contract
GCV Gross Calorific Value
Genco Generation Company
GOA Government of Assam
HR Human Resource
HRM Human Resource Management
HV High Voltage
IEGC Indian Electricity Grid Code
INR Indian Rupees
IEC International Electrotechnical Commission
IGNOU Indira Gandhi National Open University
IT Information Technology
Kcal Kilo Calorie
Km Kilometre
KPI Key Performance Indicator
KWH Kilo Watt Hour
L/C Letter of Credit
LAEDCL Lower Assam Electricity Distribution Company Limited
LV Low Voltage
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Acronym Full Name
MD Managing Director
MIS Management Information Systems
MOEF Ministry of Environment and Forest
MP Madhya Pradesh
MPP Manpower Planning
MVA Mega Volt Ampere
MVAR Mega Volt Ampere Reactive
MW Megawatt
MU Million Units
MGT Mobile Gas Turbine
NDPL New Delhi Power Limited
NLDC National Load Despatch Centre
NE North East
O&M Operation and Maintenance
O/H Overhead
OPEX Operating Expense
PGCIL Power Grid Corporation of India Limited
PLF Plant Load Factor
PMU Project Management Unit
PPA Power Purchase Agreement
PWC Price Waterhouse Cooper
RAID Redundant Array of Independent Disks
RLDC Regional Load Despatch Centre
RAB Regulatory Asset Base
R-APDRP Restructured Accelerated Power Development and

Reforms Programme
R&M Repair and Maintenance
RRES Rural Renewable Electrification Scheme
SPPSS Single Point Power Supply Scheme
SBU Strategic Business Unit
SCC Special Conditions of Contract
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Acronym Full Name
SDO Sub-Divisional Officer
SEB State Electricity Board
SLDC State Load Despatch Centre
STU State Transmission Utility
SAN Storage Area Network
SCADA Supervisory Control and Data Acquisition
SAIDI System Average Interruption Duration Index
SAIFI System Average Interruption Frequency Index
SRS System Requirement Specification
TA Technical Assistance
TL Team Leader
TNA Training Needs Assessment
Transco Transmission Company
U/G Underground
UPS Uninterrupted Power Supply
UAEDCL Upper Assam Electricity Distribution Company Limited
USAID United States Agency for International Development
WB World Bank
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I BACKGROUND
The Assam Power Distribution Company Ltd. (APDCL), the only power distribution company in the
state of Assam has three zones of operation namely Upper Assam Zone, Central Assam Zone and
Lower Assam Zone. These three Zones are responsible for operation, maintenance and development
of the sub- transmission and distribution system located in their respective zone of operation. Over
the last decade, peak unrestricted electricity demand in Assam increased by 44%from 587 megawatts
(MW) in 1999 to 848 MW in 2008. (Sources: Data from 20012008: Central Electricity Authority (CEA)
Assam power sector reports).
The primary objective of reform in Assam Power Sector is to transform the Assam State Electricity
Board to different Autonomous, Competitive and Sustainable business entity. The Electricity Act 2003
prescribes the power sector in India to have autonomous organisations for Generation, Transmission
and Distribution to have better accountability and performance orientation. Assam State Govt has
followed this policy and separate organisations have been created. Also as per Open Access Policy
envisaged in IE Act 2003, the Assam Power Distribution Company Limited should carry out its
operation in a competitive manner. The APDCL should also have a sustainable business policy for long
term economic growth of the State.
The National Electricity Policy (2005) of the Government of India envisages providing Electricity for all
by 2011-12. Electricity being the driving force behind progress in society, supply of quality and
reliable power at an affordable price shall not only bring in an qualitative change in the life of the
people but will improve the economy of the state as well. Assam is an agrarian state with conventional
agricultural production system having abundant natural resources, yet it is industrially backward.
Hence it has a demand for quality, reliable and secure power supply to achieve a qualitative economic
change for alleviation of poverty that is one of the root causes behind the growth of insurgency in the
region. Improved power supply at a reasonable cost is, therefore, essential to boost the state
economy and lead to overall poverty reduction.
In order to ensure the sustainability and competitiveness of the company, one of the major outcomes
of the Assam Power Sector improvement initiatives was significant aggregate technical and
commercial (ATC) loss reduction from 42.5% in 2003 to 35.0% in 2008. Distribution technical loss has
reduced from 18.0% to 12.5% contributing to reducing annual greenhouse gas emissions by 0.48
million tons carbon dioxide (t-CO2) equivalent. However, current AT & C loss is still higher than the
national average of 28%. Energy efficiency must be enhanced if the Central Government's target of
15% ATC loss is to be met.
The key factor in improvement in Power Distribution sector would be in this case Loss Reduction and it
is well considered that the adoption of Information Technology in the areas of energy accounting will
be essential while taking up the regular distribution strengthening projects. It is worthwhile to
mention here that Assam Power Distribution Corporation Limited is already in the process of
development of an integrated IT System for its urban area under R-APDRP scheme of Govt of India
which consists of billing system, new connection/disconnection system, asset management, material
management, GIS system, automated meter reading system and other modules.
The Govt. of India has restructured APDRP during the XI Plan with revised terms and conditions as a
Central Sector Scheme. The focus of the program shall be on actual, demonstrable performance in
terms of sustained loss reduction. Establishment of reliable and automated systems for sustained
collection of accurate base line data, and aimed at bringing about improvement in the urban
distribution sector by funding investment in the distribution network, and by incentivising the states
that performed well in reducing losses.
The objectives of Assam Power Distribution Corporation Limited are primarily similar to other Power
Distribution Utilities in the country and are as follows:
To reduce AT&C Loss.
To deliver reliable and cost effective electricity
To ensure electrification of remote and rural area
To ensure excellence in consumer care
To create a work environment for performance improvement
These objectives also ensure the autonomous, competitive and sustainable operation of the
organisation in long term.
In light of aforesaid background, for the Distribution area, the sub-steps will involve review of various
business processes of the company, the existing procedures, and the systems adopted to manage the
company operations with the objective of determining those steps and bottlenecks that are not
aligned and/or optimized for the objective of efficient performance of the sector.
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II CORE BUSINESS
1. AS-IS ANALYSIS, BENCHMARKING PROCESS AND

STANDARDS
1.1. KEY OBJECTIVE OF AS-IS ANALYSIS

The purpose of the As-Is Analysis is to provide an analysis of the current process situation in the
Distribution Company in Assam. This analysis shall provide a clear picture of the current framework
as well as represent the base for all future developments in the project. Following the project
structure this section is divided into sub-sections for each of the areas covered within the project, i.e.
key processes in Distribution Function, Performance Parameters and gaps identified.
The Consultant has prepared list of information requirements to be provided by the company
(included in earlier submitted inception report). Also information has been collected with meetings
with relevant companies staff and site visits to specific premises.
This study will determine how APDCL is complying with the main drivers behind efficient performance
(in general terms, they can be gathered under the following categories: quality of the service and
optimization of the resources). For this purpose, the performance of the traditional activities within
each area is to be reviewed in detail as well as the achievement of external performance
requirements established by Regulatory Authorities.
1.2. INTRODUCTION
Assam State Electricity Board (ASEB) The Government of Assam (GOA) notified Vide Memo No
PEL.151/2003/Pt./165 dated 10th Dec2004 to restructure the Assam state Electricity Board into five
entities namely
Assam Electricity Grid Corporation Limited (AEGCL) to carry out function as State
Transmission Utility (STU).
Assam Power Generation Corporation Limited (APGCL) to carry out function of generation of
electricity in the State of Assam.
Three Electricity Distribution Companies, namely Lower, Central and Upper Assam Distribution
Company Limited respectively to carry out functions of distribution and retail sale of electricity
In May 2009, as per GOA notification No PEL.41/2006/199 dated 13th May09, as per Assam State
Reform (Transfer and merger of Distribution Functions and undertakings) scheme, 2009, the Upper
Assam and Central Assam Distribution Company merged with the Lower Assam Distribution Co
thereby forming one distribution company for the state. The primary reasons for re-bundling of the
DISCOMs are:
Equitable distribution of power in different areas of the State at uniform BST
Difficulties in interstate trading
Small size of Assam State Electricity Board compared to other States
Dearth of skilled employees in Account and Technical wings as well as limited financial
capacity for augmenting the same.
Constraints in implementation of Rural Electrification Works

The name of the company has been successively changed from LAEDCL to Assam Power Distribution
Company Limited (APDCL) on 23rd October 2009.
Consequent upon the changes above, the erstwhile merged DISCOMs have been termed as:
APDCL-Upper Assam Zone
APDCL- Central Assam Zone
APDCL- Lower Assam Zone
1. Upper Assam Zone

Area of operation
The consumers of the districts of Golaghat, Jorhat, Sibsagar, Dibrugarh, Tinsukia, North Lakhimpur
and Dhemaji in Upper Assam are under the jurisdiction of this zone. It has over 5.32 Lakhs of
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution II-13
MERCADOS EMI - NDPL
consumers of different categories including urban, rural, LT and HT industries, Tea Gardens etc and
has a present connected load of approximately 1000 MW.
Existing Network
Presently 33 KV system network comprises 68 nos. of 33/11 KV sub-stations of 494.4MVA Capacity,
1503.5 Ckt km of 33 kV lines and 9270.5 Ckt. Km of 11kV lines. It supplies power to consumers
through nearly 8980 nos. of distribution transformers through a network of 14534.5 ckt km of LT
lines.
2. Central Assam Zone

Area of operation
Area of operation of this zone is to supply electricity to its consumers, both urban and rural, spread
across the Districts of Cachar, Karimganj, Hailakandi, Nagaon, Sonitpur, Morigaon, N.C.Hills & Karbi
Anglong through the power distribution network owned by it. It receives power in bulk in its 33 KV
network system from different sources through the grid network of the Assam Electricity Grid
Corporation Ltd. It has a peak power demand of about 220 MW against around 5.69 Lakhs consumers
having a total connected load of approximately 765MW.
Existing Network
The 33 KV system network comprises 72 nos. of 33/11 KV substations with a total capacity of 499.3
MVA and 73 nos. of 33 KV lines having a total line length of 1647.17 Ckt km as on March 2008. In the
11 KV network, there are around 265 nos. feeders having a total length of about 10111.00 Ckt. km.
It supplies power to its consumers through nearly 8006 nos. of distribution transformers of various
capacities, ranging from 16 KVA to 1000 KVA and having LT line length of 12703.7kM
3. Lower Assam Zone

Area of operation
This zone caters to the energy needs of the consumers of the districts located in Lower Assam,
namely, Kamrup, Nalbari, Barpeta, Kokrajhar, Bongaigaon, Goalpara and Darrang. It has over
7.45Lakh consumers of different categories at present with connected load of 1244MW.
Existing Network
The 33 KV system network comprises 99 nos. of 33/11 KV substations with a total capacity of 669
MVA and 33 KV lines having a total line length of about 1476 Ckt km. The 11 KV network has a total
length of about 9950 Ckt. km. It supplies power to consumers through nearly 10212 nos. of
distribution transformers of various capacities, ranging from 5KVA to 1000 KVA and the LT line length
through which the consumers are catered to comprise 12500 ckt km.
1.3. PROJECT PERFORMANCE MEASUREMENTS

The most important performance indicator for the Distribution Utility is AT&C Loss. Apart from this,
the energy injected into the system and revenue billed for the DISCOM is also important.
The performance of APDCL in respect to Monthly Revenue generated and Energy Loss Level is
measured at various levels. Monthly Revenue Report is generated for each Sub-Division. Energy Loss
Report for all feeders at a Division level is also generated each month. These reports are further
collated at Division and Circle level. The Commercial and Tariff Department under the CGM
(Commercial) collate these reports at Zonal and DISCOM level.
The Consultant has considered these reports at Commercial department along with AERC Tariff Order
for assessing the performance of the DISCOM.
Table 1 - Distribution Loss considered for Tariff Calculation for 2008-09 & 2009-10
2007-08 2008-09 2009-10

Loss Percentage
(Normative) (Normative) (Normative)
LAEDCL (presently
21.6% 24 % 22 %
Lower Zone)
CAEDCL (presently
28.9 % 30 % 28 %
Central Zone)
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UAEDCL (presently
27.66 % 26 % 24 %
Upper Zone)
Source: AERC Tariff Order for 2008-09 and 2009-10
The performance of APDCL and its three Zones in respect to Billing Efficiency, Collection Efficiency
and overall efficiency is depicted in following graphs:
Figure 1 - Performance of APDCL: energy billed
Figure 2 - Performance of APDCL: energy injected
It can be observed that both Energy Billed and Unit Injected in all three Zones in Assam, follow
almost same seasonal pattern. Since majority consumers are either of domestic category or
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agricultural consumers, maximum consumption in all three zones in Assam is observed during
September to November.
Figure 3 - Performance of APDCL: billing, collection and overall efficiency
Figure 4 - Performance of Lower Assam Area: billing, collection and overall efficiency
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Figure 5 - Performance of Upper Assam Area: billing, collection and overall efficiency
Figure 6 - Performance of Central Assam Area: billing, collection and overall efficiency
All three zones in APDCL has shown similar trend in losses. Although collection efficiency has shown
marginal trend in improvement, billing efficiency in all zones has remained almost at the same level.
The sample Monthly Revenue Return Report for Dibrugarh Division and feeder wise Energy Loss
Report is attached in annex VII 1.
1.4. INVESTMENT PROPOSALS

APDCL is making critical and urgently needed investments in its distribution network to strengthen an
overload system and to enhance its reliability to meet contingencies. The proposal for approval of the
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Annual Revenue Requirement submitted by the DISCOMs also envisages the recovery of planned and
on-going investments.
The following section deals in detail with the various capital investment programs on going at
erstwhile LAEDCL, CAEDCL and UAEDCL (presently Lower Zone, Central Zone and Upper Zone of
APDCL) and those proposed for the subsequent years.
1.4.1. ACCELERATED POWER DEVELOPMENT AND REFORM PROGRAM (APDRP)

The APDRP scheme was introduced by Govt. of India to achieve reduction of T&D loss, improve
reliability and quality of power and to increase net power availability. It aims at strengthening and
improving the sub-transmission and distribution network by setting up of new 33/11 KV sub-stations,
augmentation of Distribution transformers, replacement of conductors, up-gradation of feeders,
system metering, 100% consumer metering and computerization of billing, capacity building etc.
The APDRP project is designed to address to the above mentioned issues with the ultimate objective
of reducing losses and improving quality of power supply.
Improvements of Sub-Transmission & Distribution System will emphasize on:
Reducing Losses and bringing viability to DISCOM
100% metering & energy audit
Improvement in the quality of supply
Application of Information Technology in Revenue & Operation
Outsourcing of Distribution Activities
Government of Assam and Ministry of Power has allotted fund to Assam (of which 90% is grant and
10% loan) for whole of APDRP schemes. Works under the schemes cover 14 Circles under different
Zones.
1.4.2. NON LAPSABLE UPPER POOL OF RESOURCES (NLCPR)

The NLCPR fund outlay is being used for critical augmentation of the 33/11 KV Sub Stations,
construction of 33 KV lines, and for construction and augmentation of distribution Sub Stations.
1.4.3. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY)

The RGGVY scheme provides electric connections to BPL consumers. As per rural electrification policy
under RGGVY scheme, all projected BPL service connections are to be completed within the year 2009
including all RGGVY projects. As per tariff order 2006-07, the connected load for Jeevan Dhara
category is < 0.5 KW and as per BPL service criteria in RGGVY schemes, the connected load per
service connection is 0.06 KW. Consequently an average connected load of 0.1 KW per service for
Jeevan Dhara has been considered in the projections. The average connected load for Domestic A &
Commercial (LT) categories are considered as 1.0 KW per service connection. For small industry
category (mainly rice mills), an average connected load of 10 HP (7.5 KW) per service connection and
for agriculture LT (mainly PTW), an average pump capacity of 7.5 HP (5 KW) per service connection
have been considered. However, agriculture (STW) connections shall depend on the availability of
ground water reserve.
Apart from the above, the APDCL is also investing fund sanctioned in Assam Vikas Yojana by
Government of Assam and fund sanctioned by ADB for restructuring of Assam Power Sector.
The investment proposal for Lower Assam Zone, Central Assam Zone and Upper Assam Zone
(erstwhile LAEDCL, CAEDCL and UAEDCL) as submitted in Tariff Proposal to AERC is as follows:
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Table 2 - Investment proposals for LAEDCL, CAEDCL and UAEDCL
1.5. ATC& C LOSSES

The primary objective of reform in Assam Power Sector is to transform the Assam State Electricity
Board to different Autonomous, Competitive and Sustainable business entity. The Electricity Act 2003
prescribes the power sector in India to have autonomous organisation for Distribution to have better
accountability and performance orientation. Assam State Government has followed this policy and
separate organisations have been created. Also as per Open Access Policy envisaged in IE Act 2003,
the Assam Power Distribution Company Limited should carry out its operation in a competitive
manner.
The APDCL should also have a sustainable business policy for long term economic growth of the
State. Improved power supply at a reasonable cost is, therefore, essential to boost the state economy
and lead to overall poverty reduction. In order to ensure the sustainability and competitiveness of the
company, one of the major outcomes of the Assam Power Sector improvement initiatives was
significant aggregate technical and commercial (ATC) loss reduction from 42.5% in 2003 to 35.0% in
2008. Distribution technical loss has reduced from 18.0% to 12.5%.
However, current AT & C loss is still higher than the national average of 28%. Also the present trend
of overall efficiency in all three zones in Assam does not reflect any significant trend in improvement.
The key factor in improvement in Power Distribution sector would be in this case Loss Reduction.
The most critical factor in respect of AT&C Losses has been observed that although there is a target
for AT&C Loss reduction stipulated by the Regulator, there is no further cascading of this target to the
Strategic Business Units of the organisation, i.e. Circle, Divisions and Sub-Divisions. Although the
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major operational and commercial processes affecting AT&C Loss are controlled by Sub-Divisional
Offices only.
The key factor in improvement in Assam Power Distribution sector would be Loss Reduction. The
processes related to AT&C Loss and overall performance of the organization has been studied and
reported in details in following chapter.
1.6. AS-IS ANALYSIS

For the Distribution area, the sub-steps will involve review of various business processes of the
company, the existing procedures, and the systems adopted to manage the company operations with
the objective of determining those steps and bottlenecks that are not aligned and/or optimized for the
objective of efficient performance of the sector. The consultant has considered following broad
approach for As-Is Analysis of Distribution Processes.
1. Identify Key Processes in consultation with DISCOMs

With exhaustive discussions with Top management team of the DISCOMs, the priority and key
objectives of the organization has been assessed. The following key processes have been analysed in
this study:
Energy Accounting and AT&C Loss measurements
Organisational Structure and resource deployment
Power Procurement
Commercial Metering, Billing and Collection
Distribution Operational Processes Fault Repairing
2. Identification of Process Owner for each process

The Process Owner for the key processes at Central Monitoring level and Operational level has been
identified. Whereas commercial and operational processes are decentralized at the Sub-Divisional
Offices, organization structure, resource deployment and power procurement is centralized at the
Corporate Office. Energy accounting and AT&C Loss measurements are carried out initially at Sub-
Division level and is further collated at the commercial division at corporate office.
3. Discussions with Process Owners/ identified personnel and collection of information

for As-Is mapping of the processes identified above
The existing processes have been discussed in details to understand each functional, operational and
strategic aspect of the same. Also information related to key processes has been collected wherever
available. However all details of information have yet not been provided by APDCL. Few Sub-division
Offices, Division Offices and Circle Offices of APDCL have been studied along with central processes in
Corporate Offices. As discussed with the Director (PMU) following Circle, Division and Sub-Division
offices have been visited:
Dibrugarh Circle Office
o Dibrugarh Division Office Sub Division I and III
Rangia Circle Office
o Rangia Division Office Sub Division I and II
Nalbari Division Office Sub Division I and II
Morigaon Division Office Sub Division Morigaon, Saraibari, Jagirroad
Apart from these offices, five 33 KV Substations and two 132 KV Grid Substations, Meter Testing &
Inspection (MTI) offices and police stations for electricity theft control, have been visited by the
consultant.
Commercial, Power Procurement, Project and other Departments in corporate office have also been
visited during the course of the study.
The Consultant has also met the Regulator during the As-Is study to assess the regulatory
performance of the DISCOM.
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Analysis of the processes with identified key aspects has been done for identification of broad areas of
improvement.
1.7. ENERGY ACCOUNTING

It is well considered that the adoption of Information Technology in the areas of energy accounting
will be essential while taking up the regular distribution strengthening projects. The present status of
Energy Accounting in APDCL is as follows:
The Existing processes

The major business processes that are being followed by APDCL in the fields of energy auditing and
accounting are outlined below:
Inter-organisation energy auditing and accounting (between AEGCL and APDCL)
Intra-organisation energy auditing and accounting (sub-division and division)
Reports (Monthly Reports are collated at Circle level and then in headquarter)
Preliminary Gaps assessment

A detailed study of the energy auditing and accounting process as is being followed in practice has
revealed that there exist certain areas of concern which need to addressed at the very earliest, if the
output of the energy auditing exercise is to be treated with the degree of importance and reliability
that it deserves. These areas of concern can broadly be classified as follows:
Billing and allied issues
o Reporting of Billing Information is not through computerised system in Central Zone
o Reporting of collection amount is not considered from computerised system
o Cancellation or abatement of bills relating to prior periods
o Impact of miscellaneous charges on billing rates
Systemic issues
o Metering for many feeders are either non-existent or defective
o Transfer of energy across feeders not accounted for
Data quality issues
o Prevalence of manual processes
o Possibility of inadvertent errors while collection of boundary meter data
o Faulty data processing
Staffing issues
o Capacity building
o Training
1.8. ORGANISATIONAL STRUCTURE

The two distribution companies namely UAEDCL and CAEDCL, their functions, rights, obligations,
properties, interests, liabilities along with personnel were transferred and vested with the third
distribution company (LAEDCL) vide Department of Power, state notification dated 13 May 2009
bearing no. 41/2006/199 with effect from 1st April, 2009.
Subsequent to this, the present organization structure of the DISCOM is as follows:
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Figure 7 - Organizational chart of APDCL
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The following table depicts broad roles and responsibilities of the above functions:
Table 3 - Roles and responsibilities of the main managerial positions APDCL
Sl. Function /
Broad Roles & Responsibilities
No Position
1 Chief General CGM zones is responsible for all the circles under that zone
Manager
Acting as an interface between field offices and the headquarter
(Operations -
functions
Upper Assam Zone,
CGM (LAZ) is also responsible for the material management and R-
Central Assam Zone,
APDRP implementation
Lower Assam Zone)
2 Director (PMU) i.e. Director (PMU) looks after the Asian Development Bank (ADB)
Project Monitoring funded projects.
Unit
He acts as a coordinating officer for the ADB projects These projects
are across Generation, Transmission and Distribution and loan is
often given to ASEB. Thus work of PMU in not limited to APDCL but it
also provides services to APGCL and AEGCL.
3 Chief General Commercial (revenue monitoring) wing is responsible for the

Manager monitoring commercial performance of all the subdivisions and
(Commercial generating MIS reports.
and tariff) Tariff wing looks after the power procurement issues and also deals
with all regulatory issues.
4 Chief General Rural Electrification is responsible for planning and implementation

Manager (Rural of Rajiv Gandhi Grameen Vidyut karan Yojna.
Electrification)
5 Dy General Manager Posting and transfer of employees

(HR Upper Assam
Promotions
Zone, Central Assam
Zone, Lower Assam Recruitment
Zone)
The position is acting as Director Personnel also for ASEB for
unified cadre activities
6 Chief General CGM Projects and Planning (P&P) is responsible for allocation of
Manager (Projects & funds in project and tracking the progress of projects.
Planning) All the funds from the government of Assam and Government of
India are allocated to ASEB (for old schemes that were initiated
before unbundling and are continuing).
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Sl. Function /
Broad Roles & Responsibilities
No Position
Project & Planning is responsible for planning of the projects and
then as per the plan funds are allocated to different projects being
undertaken by APGCL, APDCL and AEGCL
7 Chief General Preparation of pay and keeping pension & provident fund records
Manager (F&A)
Corporate finance
Preparation of final accounts, budgeting and audit activities
8 Chief Medical Officer Approval of medical bills

Liaison with local hospitals / medical practitioners
9 Circle-in-Charge Presently one DGM is heading most of the Circles administratively.

Procurement, Rural Electrification and Enforcement activities are
controlled from the Circle Office.
10 Division-in-Charge Presently one senior Manager is heading most of the Divisions

administratively.
Monthly Revenue and Energy Accounting activities are controlled
from the Division Office.
11 Sub-Division-in- Presently one Manager or JE is heading most of the Sub-divisions.

Charge
Meter reading, Billing, Collection, distribution operational issues are
dealt in Sub-Divisions.
The above organisation structure is presently under review as per recommendations made in last
study on re-designing of organisation structure by ADB.
1.9. POWER PROCUREMENT

The availability of bulk (input) power is the most critical link in the value chain of APDCL as any major
shortfall results in need for power procurement from alternate sources at much higher cost, thus
affecting tariff and consumer satisfaction. Power procurement is planned for longer horizons and new
PPAs are entered into for a 20-25 year period.
Presently power procurement is carried out from NHPC, NAPCO and AEGCL. Annual demand
projection is carried out by the SLDC and last five years data is used.
For any surplus energy condition, the surplus energy sold/adjusted through any of the following
methods:
Selling through Power Exchange
Bi-Lateral arrangement
Banking
1.10. COMMERCIAL: METERING, BILLING, AND COLLECTION

The major processes are depicted below:
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Figure 8 - Simplified and normal New Connection Process
Simplified New Connection Process
Process Input Process Activities Process Output
Start
a.1.1)
Consumers visit
the Sub-division
office and filled up
the form &
undertaking
(i)
The form was Demand Note for

checked for the meter cost and
details filled up by service charges
consumer paid by applicant
Stocks for meter

and Service Line
was assigned
against the
request
New Connection
request forward to
the operation staff
Yes New Connection

If LT line is given to the
available consumer
within 30 m
New Consumer
No details added in
the billing
database and
New Connection given meter
Request to be reader
considered in
Normal category
END
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Normal New Connection Process
Start
The form was

checked for the
details filled up by
Consumers visit consumer
the Sub-division
office and filled up
the form
New Connection
request forward to
the operation staff
for site visit
No LT Line extension
charges are levied
to the applicant
If LT line is
available
within 30 m
LT Line extension
Yes
carried out after
payment by applicant
As per feasibility
report meter cost
realised from
applicant
Stocks for meter

and Service Line
was assigned
against the
request
Meter details
added in the billing
database for
billing
New Connection
given to the
consumer
Details added in the
database for future
reference
END
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Figure 9 - Meter Reading and Bill Generation Process
Meter Reading and Bill Generation Process
Start
Chief Meter Reader

allocates the
reading sheets to
Distribution the other reader
Transformer wise
reading sheet was
generated
Meter Reader
takes the reading
in the reading
sheet
Reading sheet
submitted to the
Sub-division
office; reading
uploaded in the
application
Reading referred
to the meter
No reader for
verification
Current
reading is
more than
previous
reading Details added in the
database for future
reference
Yes
Bill is generated
and provided to
the readers for
distribution
Bill Distributed to
the consumers by
the meter reader
END
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Figure 10 - Collection and Disconnection Process
Collection and Disconnection Process
Start
Consumers paid
bills in the
collection centre
Bill was
distributed to
the consumers
Collection data
reconciled with the
demand data
Disconnection
notices are
generated from
the application
Disconnection
Notices were
handed over to the
lineman
Lineman carried out

disconnection
activities and status
report submitted to
commercial
department
Status report
updated in the
application
Details added in the
database for future
reference
END
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Figure 11 - Complaint Handling Process
Complaint Handling Process
Start
AM (Revenue)
analyses complaint
Reading/Billing
complaint lodged
at sub-division
office
Bill is reconciled
with the data in
system and ledger
Reading
Is reading referred to the
verification meter reader for
required? verification
Yes
Details added in
the database for
No
future reference
Yes Billing rectified

Is billing in system
rectification
required?
No Revised bill
handed over to
Complaint closed consumer
Status report
updated in the
Details added in
application
the database for
future reference
END
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1.11. DISTRIBUTION OPERATIONAL PROCESSES

Figure 12 - Fault repairing process
Fault Repairing Process
Start
Complaint allotted
to Lineman
Consumer lodges
complaint at Sub-
division/Camp
Site visit carried

out
Yes Demand Note

If any cost generated
(cable/other
equipments)
to be
recovered?
Cable/equipment
issued and
No installed
Fault rectified
END
1.12. BENCHMARKING PROCESS AND STANDARDS

Benchmarking is a process that develops performance indices for specific entities and compares them
to industry norms for the purpose of measuring entity performance, and identifying areas needing
improvement. This benchmarking process can reveal potential areas where a particular DISCOMs
performance is lacking and point to directions for further detailed examination to identify any
underlying contributing causes or mitigating factors to the performance gap. Having a clear
assessment of its strengths and weaknesses, a DISCOM can formulate a better corporate strategy to
improve its competitive position in the market place.
In these contexts, the usefulness of performance benchmarks is evident as a means to attract capital,
to direct operating expenditures, and to recognise both strengths and weaknesses in an effort for
continuous improvement in utility services. The lack of performance benchmarks or any reliable
database of performance indicators in India is a major handicap for distribution utilities. At present,
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they have no region-based standard by which to target improvement efforts, monitor progress, or to
make comparisons within the region. Throughout the region DISCOM managers recognise that they
lack this important management tool.
As any other restructuring in electricity utilities, the activities to be performed under this assignment
need to follow specific drivers which will take the company to levels comparable with national and
international best practices. Drivers shall initially respond, in general, to traditional missions and
objectives of the utilities analysed. Detailed information from the current companies situation and
framework will determine the final approach to the restructuring process. In this way, drivers for each
area are used within different sections of this project. However, independency in management will be
mostly based on the improvement of the quality of the service provided to internal or external
customers as well as optimisation of the resources required for economical sustainability. The
approach followed in this study so far has been as follows:
The Consultant based on As-Is analysis (mentioned in Interim Report 1) has further studied the
processes and has analysed the process gaps. The Consultant has studied the existing processes, has
considered the existing and upcoming Infrastructure projects of the organisation (like R-APDRP, etc.)
and broad process gaps observed so far have been mentioned in Interim Report 1.
Furthermore, the Consultant has taken input from relevant Stakeholders like Regulator, Supplier and
Customer.
In view of the organisations objectives and Stakeholders expectations, determination of expected
targets in the company has been made by means of benchmarking methodologies. Ideally,
comparison of Assam utilities should be made with international best practice of similar companies.
However, stability approach shows that this comparison would only result in concluding that the
company is unable to reach any of the targets established. In this way, steps have defined the
approach and on first stage the company would be compared to national standards in order to define
a road map to achieve those standards as a low hanging fruit for APDCL. Additionally, for those
aspects where further achievements are capable within a sensible time framework, benchmark
parameters based on international experiences in similar countries has been mentioned as future
roadmap.
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1.12.1. REVIEW OF NATIONAL BEST PRACTISES

From modest beginnings at the time of Independence, the Indian power sector has grown a
hundredfold and is targeting a further doubling of capacity within the next decade or so. No doubt,
a tremendous achievement and there is no escaping the fact that the sustained growth of the power
sector has been one of the major drivers for the success story that is the Indian economy, certain
pain areas notwithstanding.
Starting from the opening up of the generation sector to private sector in October 1991 to the 1998
Act through which the regulatory agencies were sought to be set up and culminating in the integrated
Electricity Act, 2003, a remarkable continuity of vision and thought process has been demonstrated
by the highest level of planners, changes in government and other factors notwithstanding. From the
distribution utilities point of view, the two most significant programmes taken up by the Ministry of
Power, Government of India are the two versions of the Accelerated Power Development Reforms
Programme i.e. APDRP-I and APDRP-II.
The thinking and policy directions that have now been decided on by the Ministry of Power,
Government of India in consultation with the leading power utilities in the fields of generation,
transmission and distribution can be summarised as follows:
Power for all by the year 2012.
Protection of the interests of economically weaker sections of society; in particular those living
Below the Poverty Line (BPL) and whose daily energy consumption does not exceed 30 kWh per
month.
Centres of excellence across the country to show the way.
11 kV feeders will be treated as a profit centre, with the concerned Junior Engineer playing the
role of a Feeder Manager (for one or more feeders, as thought necessary).
Committed and sustained movement towards improving the financial viability of the power
distribution utility.
Identification of Key Result Areas to help in prioritising the various organisational initiatives.
Preparing all the market players to play an active, responsible but commercially-oriented role in
an ABT environment; both at the inter-State as well at the intra-State level when the necessary
communication infrastructure is in place and organisational capabilities have been suitably
enhanced.
Move towards rational tariff structures and reduce, if not eliminate, subsidies and cross-subsidies
to within 20% of properly ascertained cost of supply for all categories of consumers.
The Assam Power Distribution Company Ltd. (APDCL), the only power distribution company in the
state of Assam has three zones of operation namely Upper Assam Zone, Central Assam Zone and
Lower Assam Zone. These three zones are responsible for operation, maintenance and development
of the sub- transmission and distribution system located in their respective zone of operation. Over
the last decade, peak unrestricted electricity demand in Assam increased by 44% from 587
megawatts (MW) in 1999 to 848 MW in 2008. (Sources: Data from 20012008: Central Electricity
Authority (CEA) Assam power sector reports). The primary objective of reform in Assam Power Sector
is to transform the Assam State Electricity Board to different Autonomous, Competitive and
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Sustainable business entity. The Electricity Act 2003 prescribes the power sector in India to have
autonomous organisations for Generation, Transmission and Distribution to have better accountability
and performance orientation. Assam State Government has followed this policy and separate
organisations have been created. Also as per Open Access Policy envisaged in IE Act 2003, the Assam
Power Distribution Company Limited should carry out its operation in a competitive manner. The
APDCL should also have a sustainable business policy for long term economic growth of the State.
The National Electricity Policy (2005) of the Government of India envisages providing Electricity for all
by 2011-12. Electricity being the driving force behind progress in society, supply of quality and
reliable power at an affordable price shall not only bring in an qualitative change in the life of the
people but will improve the economy of the state as well. Assam is an agrarian state with
conventional agricultural production system having abundant natural resources, yet it is industrially
backward. Hence, it has a demand for quality, reliable and secure power supply to achieve a
qualitative economic change for alleviation of poverty that is one of the root causes behind the
growth of insurgency in the region. Improved power supply at a reasonable cost is, therefore,
essential to boost the state economy and lead to overall poverty reduction. In order to ensure the
sustainability and competitiveness of the company, one of the major outcomes of the Assam Power
Sector improvement initiatives was significant aggregate technical and commercial (ATC) loss
reduction from 42.5% in 2003 to 35.0% in 2008. Distribution technical loss has reduced from 18.0%
to 12.5%; contributing to reducing annual greenhouse gas emissions by 0.48 million tons carbon
dioxide (t-CO2) equivalent. However, current AT & C loss is still higher than the national average of
28%. Energy efficiency must be enhanced if the Central Government's target of 15% ATC loss is to be
met.
Major Challenges faced by Indian Power Distribution sector are listed below.
The distribution sector faces these issues due to certain complexities that are listed below.
With all the problems, nationwide success in Distribution sector is a far cry. So far in parts of the
country there are few success stories of Distribution reform like CESC in Kolkata, BSES in Mumbai,
NDPL &and BSES in Delhi, AEPDCL in Andhra Pradesh etc.
In this section we will highlight the best practices that followed in successful DISCOMs in India.
We will discuss the best practices in the vertical of People-Process- Technology.
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a) Technology
Centralised Database for Consumer Data Centralised database is maintained for
commercial application like Metering, Billing, and Collection etc. Presently ASEB maintains de-
centralised billing architecture. Databases are also not linked for these applications so there is
no centralised MIS on the performance of these business critical functions. Presently all the
reports are prepared on the manual inputs and then sent to Senior Management.
Digitalisation of Records - All the records like consumers attributes, official proceedings
are maintained in digitalised format so that it can be accessible across the organisation.
These records are required across the utility for any decision regarding the commercial
complaint. In leading utilities in India, all records are maintained in digitalised format so that
they can be accessed by anyone in utility.
Distribution Automation- SCADA, DMS, GIS, ERP systems are used for automation of the
distribution network. Automated grid stations controlled by SCADA with integrated GIS and
ERP system are the backbone of any modern power distribution company. Most of the leading
distribution companies in India completed these first stages of automation. ASEB needs to
look into this aspect for having a better control over its distribution asset.
Process Automation- Initiatives like AMR, Spot Billing system, ATPM machines, Web
interface have been used for automation of the process. Process like Automatic Meter
Reading, Spot Billing system helps to reduce the meter reading and billing error and it also
decrease the cycle time for the utility. Up to this date, the ASEB has not introduced any of the
process automation toll, which will increase the efficiency of commercial process.
Introductions of new assets in Distribution Network- New technology in distribution
such as HVDS transformer, Areal Bunched Conductor, Dry Type Transformers are used
extensively in the distribution network. Initiative such as High Voltage Distribution System
reduces the technical losses and it also helps to reduce the chance of direct tapping from the
LT mains. HVDS along with Areal Bunched Conductor are very fruitful for controlling AT & C
losses in the theft prone are.
Overhauling of Metering System- Downloadable Electronic meters, Pre-Paid meters which
are more accurate and have less chance of tampering are being used. For high revenue
consumers, downloadable electronic meters are used so that data can be analysed for
detecting any malpractices by the consumers.
Centralised IVRS based Call Centre- A centralised Call Centre has been set up for
attending consumers calls and follow up for resolution. The centralised call centre helps to
bring in consumer satisfaction as consumers have to call a single number for all types of
services, for the utility centralised call centre means centralised monitoring for all the types of
consumer grievances.
b) Process
Consumer Segmentation- High Revenue Base consumers are given special treatment
regarding operational and commercial services. Like any other sectors, High-revenue-based
consumers are given preferential treatment like Client Manger types of service who can be
contacted for any types of service like operation for commercial service. This will lead to the
consumer satisfaction for High-Revenue-based consumer. This will also help the ASEB to
retain the large consumers who are considering Open Access. Business Process
Reengineering- In a time-bound manner BPR exercise has been carried out for rolling out
effective process. BPR exercise is carried out to make the process more efficient and more
MERCADOS EMI - NDPL
consumer-friendly. Consumer Friendly Process- Considering consumer as king, most

processes evolve around consumer needs. Processes such as Performance and Assurance,
where utility gives money to the consumer for faltering to its service, and services like new
service connection where utility goes to consumer premises are increasing consumer
satisfaction to many fold. Centralised IT based commercial process- Most successful
distribution utilities in India have set up centralised IT based commercial process. In todays
scenario, IT plays a major backbone for the distribution companies. ASEB needs to progress
for strengthen it IT backbone.
c) People
Capacity Building- Employees are well trained for carrying out their specific job. Specific
man-days are assigned against the level of employees for the training. Most leading
distribution companies in India have rolled out own training policy and make mandatory
training man-days for its employees. Key Result Area based approach -Employees are
assigned a specific key result areas and targets from the top down approach. KRA based
approach helps employee understands his job better, which also increases the productivity.
Performance linked incentive- Employees are provided performance-linked incentive as
per the performance of the individual employee and performance of the organisation. This
type of incentive will motivate employees for go beyond its normal duty and make extra
efforts for organisation.
From the information available for APDCL, only AT & C Loss and Billing Efficiency could have been
compared with other Utilities. For comparison we have considered one best performing utility in India
and another state in same region. Although it may be comforting to note better performance of
APDCL in comparison with Mizoram, it also should be noted that billing efficiency of APDCL has
remained almost at same level and there is lot of scope for improvement both in terms of AT & C Loss
and Billing Efficiency.
Figure 13 - AT & C Losses Comparative
# Data Source: NDPL- DERC website, Mizoram- JERC website, Assam- Data provided by DISCOM
From the information available for APDCL, only AT & C Loss and Billing Efficiency could have been
compared with other Utilities. For comparison, we have considered one best performing utility in India
and another state in same region. Although it may be comforting to note better performance of
APDCL in comparison with Mizoram, it also should be noted that billing efficiency of APDCL has
remained almost at same level and there is lot of scope for improvement both in terms of AT & C Loss
and Billing Efficiency.
MERCADOS EMI - NDPL
Figure 14 - Billing Efficiency Comparison
# Data Source: NDPL- DERC website, Mizoram- JERC website, Assam- Data provided by DISCOM
1.12.2. REVIEW OF INTERNATIONAL BEST PRACTISES

Performance evaluation is vital to establishing and sustaining the quality of electricity service
throughout the developed world. While the forms of performance benchmarking vary, their use is
commonplace in the United States, Europe, Japan, and other developed countries. Utility managers
use quantitative measures to compare operational performance among their distribution units to
assure that they provide a uniform quality of service, anticipate problems, guide capital expenditures,
and increasingly to monitor their competitiveness. Electric utilities subscribe to or invest in
proprietary benchmarking services to enable comparison with both competitors and peers. Regulators
rely on cross-utility studies of service quality and cost of service for a wide variety of functions every
time they consider a utilitys application to increase consumer tariffs. Investors, bond rating agencies,
and others in the financial community also track each utilitys performance against benchmark indices
to evaluate management performance, company risk, and other factors that determine cost of capital.
In Assam Power Distribution scenario, present condition demands gradual performance improvement
and comparison with best international utilities may be considered in a later stage. The Consultant is
of the opinion that comparison of few key parameters with Utilities in developing countries in Asia,
Australia and Latin America would be useful. Some key parameters of international utilities are
mentioned as below:
Table 4 - Key parameters of international utilities
Utilities of Asia, Australia

and Latin America
Distribution parameters APDCL
Min Max Mean
44.78 USD
(As per Tariff Order, Rs
Capital expenditure total / total 580 Cr investment being
17.27 224.31 75.58
customers (in USD) made against 25.90 Lakh
consumers in 2008-09
and 2009-10)
MERCADOS EMI - NDPL
Utilities of Asia, Australia

and Latin America
Distribution parameters APDCL
Min Max Mean
32.19 USD
O & M expenditure / customer (in 416.86 Cr O & M
23.79 191.84 87.02
USD) expenditure approved
against 25.90 Lakh
consumers in 2009-10)
17.53 USD
Total capital spent / MWh sold (in 580 Cr investment being
4.64 12.73 7.21
USD) made against 6616485
MWh unit sold in 2008-
09 and 2009-10)
116%
As per Balance Sheet of
Total OPEX and CAPEX as % of asset f.y. 2008-09, total
7% 152% 59%
base expenditure is Rs 1770
Cr against fixed asset of
Rs 1518 Cr
1.342 KWh
(As per Tariff Order,
Kwh transmitted per customer per year 13.96 3,019.90 1,516.93 3475 MU demand is
projected for 25.90 Lakh
consumers.)
Source: Discussion document on Benchmarking EDI Holdings and PA Consulting Group 23rd and 24th February,
2011
The above parameters indicate that APDCL has moderate amount of CAPEX planned with a very high
ratio of expenditure to asset base. However, KWH transmitted per customer is very low. This
indicates that APDCL has high potential for increasing average supply to its consumers.
An example of collection efficiency among other international utilities and Assam is mentioned below:
Table 5 - Collection efficiency among other International Utilities
Country Collection Efficiency
Argentina (Edesur) 98.58%
Kenya 99%
Tanzania 94%
Hungary 98.5%
Collection Efficiency for APDCL in November10 is 97% as per monthly performance report of
Commercial Department. This shows that there is scope of improvement in collection efficiency area.
MERCADOS EMI - NDPL
2. GAP IDENTIFICATION AND ANALYSIS

We have highlighted some preliminary gaps in Inception Report-1 along with some new findings
during last premises visits. The gaps are summarised as follows:
As per best practices followed in other DISCOMs and observations made during field visits, these gaps
are further described in respect to the identified key processes as follows:

As mentioned in Interim Report 1, span of control for senior Management is too high. This is also
corroborated through comparison of the organisational structure of other power distribution
companies. However, this is being addressed through earlier recommendation of the Bank.
It seems that there is lack of motivation of workers in few areas for the companys objectives. The
location of top management in the headquarters far away from the working areas may be facilitating
this lack of motivation (along with weakness in processes control).
In the present organisation structure, monitoring mechanism seems to be weak. The lack of result-
oriented procedures in commercial and operational areas is resulting in poor performance of the
Divisions and Sub-divisions.
The present organisation structure does not provide focus on network maintenance. In other
organisations, operational group carries out preventive maintenance. Necessary planning and budget
for the same is centrally monitored.
The present organisation structure of the APDCL does not have any separate wing for Network
Planning and Load Forecasting. In other organisations like NDPL, a functional group has been
assigned the responsibility of network planning after taking input from operation and maintenance
department of the SBUs. This group also uses advanced software tool for Network Planning. APDCL
has to introduce such division in its structure.
This is more important to the APDCL considering its electrification plan for huge non-electrified rural
area through RGGVY scheme and other schemes.
Organisational structure seems too deep (in terms of levels). Modern structures trend to flatten the
organisation with fewer levels.
2.2. ENERGY ACCOUNTING AND AT & C LOSS MEASUREMENT

Although meters are theoretically in place at feeder level at all substations, during field visits it has
been observed that in many areas these meters are either not working or have been removed. Also
the Energy Accounting is carried out through manual input of data. For example, details of feeder
level metering in few Sub-Stations in Jorhat Circle visited by the Consultant are as follows: -
o Lichubari S/Stn No meters at 33 KV receiving end. Interface meter not existing.
o Jorhat S/Stn 11Kv/110V PTs are defective. 1 PT has been replaced recently. 3 more PTs are
required. None of 12 outgoing 11 KV feeder meters are working for this reason. Interface
meters are required for feeder nos 2, 7, 10 and 11.
o Garmur S/Stn All 3 feeders are metered.
o Gatanga S/Stn Both 2 outgoing feeders are metered.
o Kalakuan S/Stn Incoming feeder is not metered. Also one outgoing feeder meter and PT are
defective. Interface meter for Sub Divisions I and III required.
Target setting for key performance indicators like AT & C Loss Reduction is in nascent stage. For
different SBUs i.e. at Sub-Division, Division or Circle level AT & C Loss, Billing Efficiency and
Collection Efficiency targets have been set for F.Y. 2011 12. However, the process for deciding
action plans for attaining these targets and monitoring the same is not evident.
Reporting of collection amount is not considered from computerised system while preparing Energy
Accounting Report. It has been informed to the Consultant that there is a mismatch in the
computerised collection report and actual collection amount.
There is a possibility of inadvertent errors while collection of boundary meter data as this is done
through manual meter reading and then manual entry in Sub-division offices. In other organisations
like NDPL, Energy Accounting is carried out through software based on data collected through
automated meter reading. Since APDCL has downloadable meters installed in many feeders, it can
install the same in other areas and introduce Energy Audit application.
MERCADOS EMI - NDPL
2.3. POWER PROCUREMENT

As of this date, in the distribution utility the process for formulating long term demand projection is
not evident. APDCL relies on the Load Dispatch Centre report for future demand projection. However
in modern organisations, load-forecasting software is used for prediction of daily demand or longer-
term demand.
The Consultant could not observe any specific MIS for monitoring Average Power purchase cost. In
best practicing utilities, the MIS for monitoring average power purchase cost is also associated with
target on average power purchase cost over the month, quarter and year.
2.4. METER READING, INSTALLATION, BILLING AND COLLECTION

All commercial processes are de-centralised. There is no monitoring from a central location.
Commercial processes are not standardised and no standard process document (like ISO document)
exist. In other organisations like NDPL, ISO process is followed for critical commercial activities and
these functions are centralised.
Also usage of De-centralised database for commercial function in all Sub-divisions has led to manual
intervention in generation of MIS and other reports. In India, many distribution utilities including
NDPL follow centralised database for proper monitoring of critical data like meter reading, billing and
collection.
Presently, all records such consumers attributes for new connection are maintained in hard copy
where as industry practice is to maintain it in soft copy so that it can be easily accessible.
Meter Reading is carried out manually and there is no proper monitoring of meter reading
performance cycle time and efficiency. In other organisations like NDPL, meter reading is carried out
through Automated Meter Reading for bulk consumers and through hand-held devices for other
consumers.
In earlier periods, the ASEB supplied rural consumers with unmetered supply. As advised by the
Regulator, these consumers are now being converted to metered consumers. , As per January11
report there is still approximately 12,000 unmetered consumers in APDCL. Meters should be installed
against these consumers urgently. Although there is an intention to install meters in all of them, the
progress is very slow and there is no timeline to have them all metered.
In APDCL, meter replacement for consumer owned meters, is done only after consumer pays the
charges. This contributes to loss in billing efficiency. In NDPL and many other utilities in India, meter
replacement charges are not stabilised from consumers upfront, but if it is attributed to consumers,
cost of meter replacement is debited to subsequent bill of consumers. Also, there are many defective
meters pending for replacement due to shortage of meters in stock. Present condition of defective
meters and billing efficiency of various circles in APDCL is as in Table 6.
From the Table 6, it clearly transpires that circles with less number of defective meters (like
Guwahati-I and Guwahati-II) are having much higher billing efficiency. Also Circles with very high
percentage of defective meters (like Mangaldai, Kokrajhar and Jorhat) are having low billing
efficiency.
Apart from these meters, there are many electromechanical meters, which usually become sluggish
and contribute to the loss in APDCL. As on date there is no specific plan or timeline decided to replace
all defective and electromechanical meters of APDCL.
Also electrification of huge rural area is going on under RGGVY scheme. This is contributing to losses
since many consumers have not yet been brought under billing net. For example, in Jorhat Circle
under RGGVY scheme 1,438 villages are to be electrified and 79,067 BPL consumers are to be
brought under billing net. The contractor has informed presently 51,495 consumers and 36,662
consumers have been billed. There is an IRCA division in each Circle for monitoring consumers with
load more than 20 KW; metering data for large customers is not downloaded.
Table 6 - Circle Wise Defective Meters (December'10)
Number of %
Name of Total No of Billing
defective Defective
Circle/IRCA consumers Efficiency
meters Meters
Guwahati-I 163877 1345 0.8% 91%
Guwahati-II 105165 5264 5.0% 83%
Rangia 213555 20243 9.5% 61%
MERCADOS EMI - NDPL
Number of %
Name of Total No of Billing
defective Defective
Circle/IRCA consumers Efficiency
meters Meters
Bongaigaon 114287 9652 8.4% 58%
Mangaldai 65807 12147 18.5% 67%
Kokrajhar 84165 13690 16.3% 58%
Lower Assam 746856 62341 8.3% 77%
Dibrugarh 69993 5180 7.4% 72%

Tinsukia 101657 6675 6.6% 77%
Sivasagar 106325 10221 9.6% 71%
Jorhat 165611 22639 13.7% 59%
Lakhimpur 75507 6891 9.1% 65%
Upper Assam 519093 51606 9.9% 69%
Tezpur 105546 10076 9.5% 79%

Nagaon 225777 21168 9.4% 73%
KANCH 53779 5842 10.9% 77%
Cachar 185374 11115 6.0% 66%
Central Assam 570476 48201 8.4% 72%
ASEB TOTAL 1836425 162148 8.8% 73%
Monitoring of meter reading and billing efficiency of these customers is not also evident since:
There is no MIS for measuring lead-time for releasing new service connection. Manual records
are maintained for simplified new connection process.
Monthly revenue reports are generated at Sub-Division level with manual data.
There is no measure and targets for billing and collection cycle time.
Collection faces several operational problems, although normal procedure for non-payment is
illegal connection (i.e. energy losses). Among them:
o Disconnection process seems not to be effective enough. For example, during April10
to January11 in Jorhat Circle, 11,985 supplies were disconnected but only 4,619
supplies were reconnected during this period.
o Possibilities for avoiding debts (by applying for a new meter, illegally reconnecting, or
connecting to other existing meter) are easy to access.
2.5. DISTRIBUTION OPERATIONAL PROCESSES

There is no other process except fault repairing process in Sub-Divisional and Divisional offices. In
power distribution utilities, preventive maintenance of network equipment should be of major
considerations.
There is no MIS on Fault Repairing process also. Hence, the cycle time or performance of fault
repairing team cannot be tracked. In other utilities like NDPL, these performance parameters are
monitored through monthly MIS and also target is set for the same to ensure improvement.
2.6. PROCUREMENT PROCESS

The APDCL as of this date does not have a centralised procurement process. Although, there is a
designation of the CGM (Material), three zones have decentralised procurement system. This has
resulted in non-uniform quality of material and improper planning of the same.
Apart from above following major gaps are observed in human resource management of APDCL
No specific training policies for the employees.
MERCADOS EMI - NDPL
Very few employees are trained with the latest technologies.

No performance-based incentives are provided for motivating employees for carrying out
work efficiently
3. RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION

PLAN
3.1. SPECIFIC ACTIONS RECOMMENDED, BUDGET, AND EXPECTED IMPACT

Based on the study of existing processes and infrastructure of APDCL, benchmarking them with
national and international best practices and analysis of the weaknesses in existing processes, the
Consultant has to prepare a road map for next five years including all the recommendations required
to improve the processes not fulfilling with the above defined targets for the utilities. This action plan
may include recommendations on changes in the current processes, adaption of current (or under
implementation) organisation structures, incorporation of new processes, implementation of new tools
and/or equipment, and capacity building requirements.
During the meeting with the Top Management of APDCL, the Bank and the representative of Assam
Government, it was suggested that the recommendations by the Consultants should be segregated in
following categories:
Short term Actions (Quick Win): Few of the recommendations should be implemented within a
short period (say six months from initiation date) by APDCL, at one or two circles. This will
not result in improvement in all areas of the Circle, but will provide definite indication of
improvement.
Medium term Actions: Some of the recommendations can be implemented by APDCL within a
period of six months to two years. This will indicate improvement in some of the key areas of
distribution. Also the recommendations implemented in pilot project area will also be
implemented in other areas during this period.
Long term Actions: Other recommendations are required to be implemented by APDCL within
a period of two years to five years. These recommendations will also require long term
planning by the utility and will help the organisation to attain sustained efficiency in its
operations.
During discussion with the Senior Management of APDCL, it was suggested that Jorhat Division I
within Jorhat Circle would be considered for implementation of short term recommendations by
APDCL. This Division has high level of AT & C Loss, however it is considered to have good potential
for improvement. The major objectives of implementing few short term action plan will be more
effective monitoring of these plans by APDCL top management and after successful implementation of
the same, these will be further implemented in other Circles by APDCL. Present trend of AT & C Loss
and consumer mix in Jorhat Circle is as follows:
Table 7 - AT & C Loss and consumer mix in Jorhat Circle
MU MU Total Collection Billing Collection AT and

Month
injected Billed (in Lakhs) Efficiency Efficiency C Loss
Cum 2009-
366.30 226.96 11048.78 62% 97% 40%
10
Cum 2010-
360.43 211.802 10613.90 59% 96% 43%
11
Apr10 26.941 16.371 789.20 61% 91% 44%
May10 26.548 18.292 917.17 69% 94% 35%
Jun10 29.881 18.711 944.38 63% 95% 40%
July10 34.026 20.384 1027.05 60% 97% 41%
MERCADOS EMI - NDPL
MU MU Total Collection Billing Collection AT and

Month
injected Billed (in Lakhs) Efficiency Efficiency C Loss
Aug10 40.785 23.014 1171.45 56% 97% 45%
Sept10 44.542 23.968 1116.01 54% 90% 51%
Oct10 42.864 23.695 1225.40 55% 99% 45%
Nov10 42.275 24.543 1273.81 58% 99% 42%
Dec10 37.775 22.469 1192.74 59% 100% 41%
Jan11 34.794 20.355 956.69 59% 93% 45%
Number of Thousand Units Billed

% %
Consumers during Jan'10 to Dec'10
LT Consumers
Domestic 114,559 69.17% 6,998.9 31.15%
Commercial 12,735 7.69% 2,560.2 11.39%
Industrial 990 0.60% 458.2 2.04%
BPL 25,264 15.26% 452.6 2.01%
Others 1,285 0.78% 78.9 0.35%
Sub Total for LT

154,833 93.49% 10,548.8 46.95%
Consumers
HT Consumers
Domestic 61 0.04% 603.5 2.69%
Commercial 9,786 5.91% 1950.1 8.68%
Agriculture 164 0.10% 97.1 0.43%
Industrial 196 0.12% 1348.2 6.00%
Tea Garden 207 0.12% 5895.3 26.24%
Govt 318 0.19% 531.3 2.36%
Others 43 0.03% 1495.0 6.65%
Sub Total for

10,775 6.51% 11920.4 53.05%
HT Consumers
Total 165,608 100.00% 22469.2 100.00%
MERCADOS EMI - NDPL
3.1.1. SHORT TERM ACTIONS (QUICK WINS)
Expected Budget
Sl. No. Recommendation Description Expected Impact Example in other utility
(mUSD)
1 Creation of a Centralised Data It is recommended that the utility Accurate identification Low budget Involves Dakshin Haryana, NDPL, BSES
Analysis Team for bulk create a specialized team of engineers of tampering and theft training 5 engineers on have implemented this
consumer meters who are capable of analysing the data cases leading to data analytical skills concept and the same has
of downloadable meters to identify revenue assurance and proved fruitful in reduction of
In APDCL, although bulk consumers tampering by consumers and also to reduction of losses losses
are billed separately through IRCA verify meter reading accuracy.
divisions, there is no process for Shall help in enhancing
meter data analysis against HT Further the Team shall analyse all the productivity of the
consumers. cases that report exceptional meter Centralised Field Team
reading trends. The above analysis
shall serve as an important input to
the Centralised Team for identification
of theft cases and defective meter
cases.
To begin with, this team should
comprise of 5 Engineers (JEs) and this
team should report to the Head of
core monitoring group (please refer to
the chart)
2 Creation of a Centralised Field It is recommended that the utility Resolution of high value Low budget Involves Dakshin Haryana, NDPL, BSES
Team for bulk consumer meters creates a specialised team of field theft and defective meter 5 engineers with have implemented this
engineers who will arrange for taking cases Accucheck. Meter concept and the same has
After the analysis of meter data by action against theft cases and replacement budget will proved fruitful in reduction of
the central data analysis team for defective meter cases be same as existing losses
IRCA meters, the theft cases and budget.
defective meter cases are to be To begin with, this team should
addressed on priority. comprise of 5 Engineers (JEs) and this
team should report to the Head of
core monitoring group (please refer to
the chart) However depending on
number of cases identified by Analysis
team in first three months, the team
strength can be reviewed.
3 Elimination of Wrong Reading/ Following Strategies can be adopted Accurate Billing leading a) Low budget a) Common practice across
Not Read Cases for Bulk by the utility to loss reduction Organizational utilities:
Consumers restructuring to
a) Creation of a Centralised Check Increased Revenue create Check Meter Utility in Madhya Pradesh,
As mentioned in previous chapter, Meter Reading Team to do Generation Reading Teams: Chattisgarh, Haryana,
in APDCL meter reading process is random checking of cases Maharashtra have completed
MERCADOS EMI - NDPL
Expected Budget
(mUSD)
manual and there is no proper b) Automatic meter reading through USD 260 per consumer the work for AMR within a very
monitoring of wrong reading and no GSM modems can be introduced (meter, modem cost) short time. They have started
reading cases. for the bulk consumers and IT Infrastructure it from scratch.
related cost (Rs 2 Cr
Wrong Reading Cases may be due tentatively) i.e. 0.58
to mUSD for pilot area
a) Incompetency of meter reader
b) Connivance of meter reader
with consumer
c) Coffee shop readings (i.e.

without visiting the premise)
by meter reader
Not Read Cases may be due to
a) Inability of meter reader to

locate the premises
Meter Reader does not visit the
premises
4 Meter replacement should be top Accurate metering of Replacement of 1.84 Common practice across all
most priority of the organisation. consumption Lakh single phase and Distribution Utilities
0.23 Lakh 3 phase
Also there should be proper Increase in billing meters replacement @
monitoring of this activity at central efficiency Rs 1350 and Rs 4500
level. respectively is 7 mUSD.
Presently 22056 single
phase and 556 three-
phase meters in Jorhat
circle is defective. 0.65
mUSD
MERCADOS EMI - NDPL
Expected Budget
(mUSD)
5 Energy Accounting and Auditing Top Down approach to be adopted Sub division wise Not much budget Utilities in AP, Haryana,
for Energy Audit accountability of required, only Gujarat, Delhi have Energy
In APDCL, energy accounting is performance. introduction of new Auditing and Accounting
carried out through manual inputs. Install metering at all feeders and the process. But in case Systems which have helped
feeder wise energy accounting to be Identification of high feeder meters are not them prioritize their action on
drilled down to the Transformer wise loss areas on which loss available, they shall loss reduction
with the aim to have consumer reduction strategies can need to be installed by
energy accounting. be prioritized. Based on the utility
the geographic
Data downloading to be carried out by conditions, utility may Average cost of each
Sub-division officers for accurate decide to implement meter will be Rs 12000
energy accounting HVDS or LTABC solution or USD 240. In some
in these areas cases, APDCL is also
required to install bus
PT and cost of each bus
PT is around Rs 25000
or USD 500. Number of
meters required in
boundary area is to be
ascertained by the DGM
of pilot circle.
6 Mail connectivity for Pilot All employees in Circle Office, Division Monitoring of all No significant cost Common practice across all
Project Area Office and Sub-division Office should improvement initiatives involved with public Utilities.
be provided with mail connectivity. mail server for Pilot
As of this date, there is no mail area. However the
server for APDCL. Few employees Utility has to assess the
use public mail like Gmail, cost of connectivity for
rediffmail. all offices as its medium
term action plan.
7 Re-structuring Billing Cycles Billing cycles can be restructured so Cash flow improvement No additional cost. It Common practice across all
that payment due dates are staggered will improve cash flow. Utilities
As on date, payment due date across all working days in the month. Ease of payment by
against all consumers lie within 16th consumers
to 30th/31st of each month.
Optimisation of Cash
This creates huge rush in cash Office strength
collection centres in last 15 days of
the month.
MERCADOS EMI - NDPL
3.1.2. MEDIUM TERM ACTIONS
Expected Budget Example in the other

Sl. No. Recommendation Description Expected Impact
(mUSD) utility
1 Creation of cell for Network Centralised department for Planning of network infrastructure Organisational Utilities like Uttar
Planning Network Planning with input restructuring for new Haryana Vidyut Bitaran
from maintenance group Ease of maintenance of the new network in cell, Nigam, NDPL, and CESC
As of this date, there is no and using software for the rural area are few examples.
network-planning group exists. same.
2 Load flow study for the Load flow studies for the Health of the network 0.1 Million USD for Utilities like CESC, TATA
network network for finding out the software POWER Mumbai, R-Infra-
technical losses Network re-vamping plant Mumbai, BSES-Delhi,
As on date there is no network- It will work alongside NDPL are few example of
planning group exists. GIS application this
3 Creation of Centralised Centralised database should Ease of monitoring from a centralised 13.33 million USD Utilities like CESC, TATA
Commercial database be created for all the locations POWER Mumbai, R-Infra-
commercial data Mumbai, BSES-Delhi,
As mentioned earlier, in APDCL Uniform business processes across the NDPL are few example of
all subdivisions have utility this
decentralised commercial
database.
4 Elimination of Wrong Following Strategies can be Accurate Billing leading to loss reduction Low budget can be a) Common practice
Reading/ Not Read Cases adopted by the utility built into Excel sheets Across utilities
for Bulk Consumers Increased Revenue Generation
a) Building exception USD 150 per HHD b) Most of the
As mentioned in previous logics into the IT progressive utilities
chapter, in APDCL meter system which throw in AP, Haryana,
reading process is manual and out exceptional cases Bangalore are using
there is no proper monitoring such as High HHDs for meter
of wrong reading and no Consumption, Low reading
reading cases. Consumption, Nil
Consumption which
Wrong Reading Cases may be need to be checked for
due to incompetency of meter proper billing
reader
Use of Hand Held Meter
d) Connivance of meter reader Reading Devices for reading
with consumer with inbuilt logics, which
e) Coffee shop readings (i.e. ensure that reading is
without visiting the premise) brought correctly from site.
by meter reader This can eliminate manual
intervention in data entry.
MERCADOS EMI - NDPL

(mUSD) utility
Not Read Cases may be due to Secondly time stamp facility

of HHDs enable prevention
b) Inability of meter reader to of Coffee Shop readings
locate the premises.
Meter Reader does not visit the
premises
5 Centralised Consumer Call It is recommended that a Centralised Consumer Complaint Rs 5 Cr Today, Consumer Call
Centre for urban consumers Centralised Call Centre be Registration, Tracking and Monitoring Centres are a common
set up by the Utility to cater service expectation of
As on date there is no proper to Commercial and No Enhanced Consumer Satisfaction consumers. Egg.
monitoring system for Supply Complaints Paschimanchal Vidyut
consumer complaints. Vitran Nigam Limited took
up this initiative from a
scratch which has
resulted in consumer
satisfaction.
6 Introduction of New This include Increase in Revenue collection Rs 25 Lakhs Today most utility in
Payment Avenues India have completed
Cash Collection Vans for far Improved cash flow for the utility this. Most utility take the
To improve collection efficiency flung areas help of a service provider
as it has hardly improved in Consumer Satisfaction
Drop Boxes/ Kiosks who provides all these
recent times. service.
Any Time Payment
Machines
7 On-line Payment Avenues Creation of on-line payment Less footfall in the collection centre in the Rs 50 Lac Today most utility in
(for Urban Circle) avenues for the consumers urban area India have completed
this. Most utility take the
To improve collection efficiency Lower cost of transaction charge per help of a service provider
as it has hardly improved in consumer who provides all these
recent times. service.
Consumer Satisfaction
Speedy revenue recovery from consumers
8 Business Process IT enabled business process Reduction of cycle time 4.44 Million USD Utilities like CESC, TATA
Automation automation should be done POWER Mumbai, R-Infra-
for major business Better productivity Mumbai, BSES-Delhi,
Only billing and cash collection processes like new NDPL are few example of
processes are automated Uniform business process across the utility
connection application, this
through decentralised system. meter replacement etc.
MERCADOS EMI - NDPL

(mUSD) utility
GIS based consumer Consumers should be It will work as a central repository for the 77 Million USD Utilities like TATA POWER
indexing mapped in eographical assets Mumbai, R-Infra-Mumbai,
Information System with BSES-Delhi, NDPL are few
This will help in improving the Distribution Network. Site visit will be minimied as all the assets example of this
meter reading, fault repairing, will be mapped in S
network planning etc.
Reduction in cycle time for release of new
connection
Easy reference for Network Load flow
studies
Utility wide creation asset ERP application like SAP can Project life cycle tracking 0.88 Million USD Any successful
base and rollout of ERP be rolled out across the Distribution Utility in
utility for asset life cycle Ease of ARR filing India have implemented
This is important for improving tracking ERP
operational performance Project Monitoring
Spot Billing System Introduction of Spot billing Saving of money USD 4 to USD 20 per Utility in Chattisgarh and
system for the rural areas. consumers per bill Andhra Pradesh have
To improve collection efficiency Less Billing related Complaint for semi urban area introduced Spot Billing
as it has hardly improved in The Utility can outsource system. Spot billing can
recent times. spot billing activity to other Improved Cash flow for the utility
be introduced speedily as
agencies with per consumer Consumer Satisfaction only spot machine is
basis rate. This will ensure required which is
proof of delivery of bills to normally taken in lease
distant rural consumers. from any service provider
This activity along with for this kind of activity.
increase in payment
avenues for rural area, will
ensure improvement in
collection efficiency
Rollout of SMS based fault SMS based fault Reduction in downtime for fault restoration 77 Million USD NDPL-Delhi, CESC have
management system management system can be implemented the same
rolled out across the utility Consumer Satisfaction
This is important for improving
operational performance Improvement of operational efficiencies
Creation of Mobile meter Well equipped meter testing Consumer meter can be tested within Rs. 6 lac for testing van Utilities like CESC, TATA
testing unit van can be introduced for specific time periods POWER Mumbai, R-Infra-
testing the meters at site Mumbai, BSES-Delhi,
This is important for improving Lower commercial losses due to metering NDPL are few example of
operational performance error
MERCADOS EMI - NDPL

(mUSD) utility
this
14 Creation of advanced meter State of art meter testing Speedy check of meters before installation Rs. 75 Lac for a single Utilities like CESC, TATA
testing laboratory laboratory can be set up in set-up. POWER Mumbai, R-Infra-
the Division Office for Lower commercial losses due to metering Mumbai, BSES-Delhi,
This is important for improving testing of meters error NDPL are few example of
operational performance this
Consumer satisfaction
15 Creation of state of training State of art Training Centre Capacity building for the employees Rs. 5 Cr excluding Civil
facilities and training can be set up for the Constructions
policies for employees employees
This is important considering
present state of training in
APDCL.
16 Introduction of KRA for the Introduction of Key- Result- Employee will have a clear goals of the Not much budget Utilities like CESC, TATA
employees Areas based system for the targets aligning with the Organizational required, mainly POWER Mumbai, R-Infra-
employee targets process change Mumbai, BSES-Delhi,
This is required for creation of NDPL are few example of
a performance-oriented culture Employee satisfaction this.
in the organisation.
17 Introduction of monthly Functional monthly score Promote competitiveness among different Not much budget Utilities like TATA POWER
score card card can be circulated functions required, mainly Mumbai, BSES-Delhi,
within specified time frame process change NDPL are few example of
This is required for creation of to promote competitiveness Promote competitiveness among different this
a performance-oriented culture unit
in the organisation.
3.1.3. LONG TERM ACTIONS
Sl. Recommendation Description Expected Impact Expected Budget Example in other utility
No.
1 Performance based Performance based Healthy competition among the Policy shift, not much NDPL, BSES, Torrent Power
incentive for the staff incentive can be given staff requirement of budget have implemented it
to the staff for
This is required for creation of promotion of healthy Drive for results
a performance-oriented competition among the
MERCADOS EMI - NDPL
culture in the organisation. staff

Presently 1% or 2% incentive
is based on performance.
2 Automation of Grids & Automation of Grid Less downtime of networks It will vary with the no of Grid NDPL, BSES, Torrent
Distribution System Station through station considered for SCADA Power have implemented it
SCADA, & Distribution On-line line and transformer
Considering long term plan for Automation are needs loading data
the Utility to achieve the of the hours
benchmark performance. Remote load shading of feeders
3 Creation of Back office Commercial Function Stream line commercial functions Policy change required NDPL, BSES, Torrent
model or Hybrid model for can be monitored from Power have implemented it
commercial function a central locations Increase in productivity
This will ensure adherence of

improved processes across the
state.
4 Introduction of Door step Inventory from stores Increase in productivity Policy Change required NDPL, BSES, Torrent
Delivery system for can be delivered at Power have implemented it
inventory operational offices as Ease of maintenance of assets
per door step delivery
It will reduce cycle time for model
delivery.
5 Introduction of Door Step Field Service Executive Consumer Satisfaction Policy change required NDPL, BSES, Torrent
delivery for the service can visit the consumer Power have implemented it
connections premises to collect the Reduction of cycle time for
documents for new release of new connection
It will reduce cycle time for connections
new connection.
MERCADOS EMI - NDPL
3.2.1. LOSS CONTROL CELL

Distribution loss reduction is of paramount importance for APDCL as it cannot improve its financial
health without addressing it. During our visit to APDCL office it was noticed that most of the official in
different functions spend their time on normal day-to-day activities. With regular work it is difficult for
the Official to focus in time consuming activities of analysis of losses and addressing of their concern.
From this aspect we will suggest to create a separate vertical namely Loss Control Centre (LCC)
within APDCL which will mainly look after the function with a Top-Down approach i.e from calculating
of losses, analyze and addressing for its reduction.
Loss Control Centre (LCC) should have a 4 tier set for effective management of reduction of Losses.
Roles & Responsibilities of various functions would be as follows:-
Table 8 - Roles & Responsibilities
Sl. No Function / Position Broad Roles & Responsibilities
1 Head Office Annual Loss reduction targets for Circles, Divisions, Sub-divisions
Calculation of losses by collecting Metered data and billing and
collection data from Billing Database (after implementation of
centralized database)
Monitoring Loss reduction initiatives

Apprise the Management with various MIS reports on Loss reduction
Targets / Achievements/ initiatives etc.
2 Circle Office Placement of order for installation of Meters for creating ring fencing
support from Circle office
Back office support to Division & Sub-Division office for Loss reduction
initiatives
Monitoring of the indicative loss reduction parameters
3 Division Office Enforcement (Theft control) Activities for reduction of losses

Monitoring of loss reduction initiatives
Monitoring Defective/Mass Meter replacement drives
Analysis of data for high value consumers
4 Sub-Division Office Implementation of Loss reduction Initiatives.

Maintaining a healthy metering system for ring fencing and DT
metering
Proposed organization structure of the LCC will be as follows.
MERCADOS EMI - NDPL
Figure 15: Proposed Organizational Structure
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As with the current structure ASEB would find it difficult to start LCC, so it is advisable that SOP for
LCC will be done in a phased manner. We are proposing following for the LCC in various timeframe.
Function / Position Short Term Medium Term Long Term
Head Office Loss reduction Calculation of Calculation of loss

Targets for each sub-division wise from GIS database
SBU in line with the losses through
Capturing switching
targets of AERC automated
location from SCADA
application
Monitoring for
Incentive scheme for
Installation of Calculation of
loss reduction under
meters for creating losses through
R-APDRP
ring-fencing of SBU downloaded
meter data
Calculation of
division wise losses Monitoring of loss
reduction
initiatives
Circle Office ABC analysis of Monitoring & Monitoring & support

loss making areas support of loss of loss reduction
reduction drives drives
Monitoring of loss
reduction drives Circle wise energy IVRS for consumers
Audit for reporting theft
Ring-fencing of
Circle
Division Office Analysis of IRCA Enforcement Automated analysis of

consumers Activities for meter data
reduction of
Ring Fencing of Monitoring
losses
Division Defective/Mass Meter
Monitoring of loss replacement drives
reduction
Maintaining healthy
initiatives
metering system for
Monitoring ring fencing and DT
MERCADOS EMI - NDPL
Defective/Mass Metering
Meter
replacement
drives
Sub-Division Office Ring Fencing of Maintaining a Implementation of

Sub-Division healthy metering automation Initiatives.
system for ring
Conversion of bare Pro-active vigilance
fencing and DT
conductor to LT-
metering
ABC/HVDS in loss
making areas Consumer
Indexing
Replacement of
faulty/slow/stop
meters
DT Metering
3.3. IMPLEMENTATION IMPERATIVES AND ENABLERS

If we look on the above Short term, Medium Term and Long Term actions we can observe following
line of action for successful implementation:
Table 9 - Line of action for successful implementation
For a successful implementation of the short term action plans a core monitoring group should be
created which a senior representative of APDCL management should head. This group will be
responsible for following activities:
Assisting operation team at Division and Sub-divisions in improvement initiatives as
mentioned in the chart below
Monitoring and control of all improvement initiatives through regular MIS reviewed at the
senior management level of APDCL.
Monitoring of implementation enablers and ensuring replication of these initiatives in other
areas subsequently.
The structure and function of the core group is suggested as follows:
The core monitoring and control group has to primarily look into three areas Bulk Consumer
Group This subgroup will focus on analysis of meter data for bulk consumers (IRCA
consumers) and field activities associated with it.
MERCADOS EMI - NDPL
Other Consumer Group This subgroup will focus on analysis of exceptional billing cases for
other consumers and field activities associated with it.
Special activities group This subgroup will focus on the monitoring of other special activities
aiming at improving the performance of the Pilot Project Area and which are to be carried out
by the Division and Sub-division operation group. Few examples of such activities are:
o Replacement of defective meters
o Metering and Billing of all rural consumers
o Replacement of electromechanical meters
o Follow up against disconnected consumers with huge outstanding dues
o Follow up against consumers with large average consumption but low sanctioned
load.
o Installation of dedicated feeders against tea gardens etc
Detailed organisation can be found in Figure 16.
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Figure 16 - Core Monitoring Group Organisation
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3.4. RESPONSIBILITY FOR IMPLEMENTATION

If we classify Management of the ASEB, the employees, the Government of Assam and the Regulatory
Commission as four critical pillars for success, we can see that each pillar has a role to play for
making it a successful story.
Management of Regulatory
Employee of ASEB Govt. of Assam
ASEB Commission
Preparation of Support to Support ASEB for Support ASEB as a

roadmap for turn- Management for policy change viable Business
around of the the reform necessary for Model not as a social
business reform obligation
Attending training
Training need as per the norms Necessary approval Support ASEB with
identification and and utilise the after submission additional
mandatory training same in day to day from ASEB infrastructure if
policy of every working required
employees
Involve in Process
Process Re- Automation and be
engineering and a part of it
Process automation
for rollout effective
processes
Looking for fund for
funding these
initiative under R-
APDRP, or from any
other funding
agency
3.5. PROPOSED PERFORMANCE MONITORING INDICATORS/CRITERIA

Various parameters used by the utilities for measurement of performance are listed below. APDCL
should start monitoring these parameters from following data sources for a sustainable improvement
in the processes.
Performance Probable Data

Area Effect Measured
Measure source
Operational SAIFI Frequency of Outage Substation Logs

Performance
CAIDI Duration of outages Substation Logs
Aggregate Technical Effectiveness in Reports to regulators

and Commercial losses minimizing or internal reports
unrecoverable energy
cost
Technical Losses Efficiency of Load flow studies

Distribution
infrastructure
Unplanned outages Relative impact of Substation Logs

/Total outages outages
Service Restoration Responsiveness of Division Service

time maintenance Logbook
Annual replacement Role of transformer Maintenance and

rates of Distribution failure in maintenance
MERCADOS EMI - NDPL
Transformers (%) efforts Equipment records
Customer Service Lead Time for new Responsiveness and Customer account
connections service orientation of records
connection services
Lead time to test/ Commitment to Customer account and

replace meters in metering accuracy meter service records
complaint
Restore time for Effectiveness of Customer account and

individual service complaint response meter service records
complaint
Employees per 1000 Customer focus Employment records

customers effectiveness
Metering Billing Metered Ability to bill ARR reports

and Collection Customer/Total consumers for energy
Customer consumptions
Meters/ Meter readers Adequacy of records Employment records
Meter replaced/ Meters Adequacy of metering Service Records

in service technology
% of provisional billing Billing accuracy Service Records
Time lag between Billing efficiency Service Records

meter reading and bill
dispatch
Avge level of customer Collection efficiency Service records

arrears
Cost and Distribution cost /Unit Operating efficiency Financial Reports

Management
Training man- Adequacy of training Training records
days/employee
4. JORHAT PILOT PROJECT
4.1. BACKGROUND
Based on the study of existing processes and infrastructure of APDCL, benchmarking them with
national and international best practices and analysis of the weaknesses in existing processes, the
Consultant has to prepare a road map for next five years including all the recommendations required
to improve the processes.
During the meeting with the Top Management of APDCL, the Bank and the representative of Assam
Government, it was suggested that the recommendations by the Consultants should be segregated in
following categories:
Short term Actions (Quick Win): Few of the recommendations should be implemented
within a short period (say six months from initiation date) by APDCL, at one or two circles.
This will not result in improvement in all areas of the Circle, but will provide definite indication
of improvement if implemented successfully by APDCL.
Medium term Actions: Some of the recommendations can be implemented by APDCL within
a period of six months to two years.
Long term Actions: Other recommendations are required to be implemented by APDCL

within a period of two years to five years. These recommendations will also require long term
MERCADOS EMI - NDPL
planning by the utility and will help the organisation to attain sustained efficiency in its
operations.
During discussion with the Senior Management of APDCL, it was suggested that Jorhat Division I
within Jorhat Circle would be considered for implementation of short term recommendations by
APDCL. This Division has high level of AT & C Loss, however it is considered to have good potential
for improvement. The major objectives of implementing few short term action plans will be more
effective monitoring of these plans by APDCL top management and after successful implementation of
the same; these will be further implemented in other Circles by APDCL.
4.2. MAJOR OBSERVATIONS

Table 10 - Performance of Jorhat Circle
MU Total Collection (in Billing Collection

Month MU Billed AT & C Loss
injected Lakhs) Efficiency Efficiency
Cum 2009-
366.30 226.96 11048.78 62% 97% 40%
10
Cum 2010-
360.43 211.802 10613.90 59% 96% 43%
11
Apr10 26.941 16.371 789.20 61% 91% 44%
May10 26.548 18.292 917.17 69% 94% 35%
Jun10 29.881 18.711 944.38 63% 95% 40%
July10 34.026 20.384 1027.05 60% 97% 41%
Aug10 40.785 23.014 1171.45 56% 97% 45%
Sept10 44.542 23.968 1116.01 54% 90% 51%
Oct10 42.864 23.695 1225.40 55% 99% 45%
Nov10 42.275 24.543 1273.81 58% 99% 42%
Dec 10 37.775 22.469 1192.74 59% 100% 41%
Jan11 34.794 20.355 956.69 59% 93% 45%
Table 11 - Consumer Category and Units Billed
Consumer Category No of Consumers % Thousand Units Billed %
LT Consumers
Domestic 1,14,559 74.0% 6,999 66.3%
Commercial 12,735 8.2% 2,560 24.3%
Industrial 990 0.6% 458 4.3%
BPL 25,264 16.3% 453 4.3%
Others 1,285 0.8% 79 0.7%
Sub Total for LT Consumers 1,54,833 93% 10,549 47.0%
HT Consumers
MERCADOS EMI - NDPL
Domestic 61 0.6% 603.528 5.1%
Commercial 9,786 90.8% 1950.095 16.4%
Agriculture 164 1.5% 97.079 0.8%
Industrial 196 1.8% 1348.201 11.3%
Tea Garden 207 1.9% 5895.287 49.5%
Govt 318 3.0% 531.262 4.5%
Others 43 0.4% 1494.957 12.5%
Sub Total for HT Consumers 10,775 7% 11920.409 53.0%
Total 1,65,608 100% 22469.409 100%
Although consumer mix and Load mix of Jorhat Circle is not much adverse, the loss level is very high.
Tea Gardens are major consumers.
Major issues discussed:
Energy Accounting is carried out on estimation in the Circle as many feeder meters are
defective. Details of few Sub-Stations in JED-I are as follows:-
o Lichubari S/Stn No meters at 33 KV receiving end. Interface meter not existing.
o Jorehat S/Stn 11Kv/110V PTs are defective. 1 PT has been replaced recently. 3
more PTs are required. None of 12 outgoing 11 KV feeder meters are working for this
reason. Interface meters are required for feeder no.s 2, 7, 10 and 11.
o Garmur S/Stn All 3 feeders are metered.
o Gatanga S/Stn Both 2 outgoing feeders are metered.
o Kalakuan S/Stn Incoming feeder is not metered. Also one outgoing feeder meter
and PT are defective. Interface meter for SD I and III required.
Electrification of huge rural area is going on in RGGVY scheme. This is contributing to losses.
Under RGGVY scheme 1438 villages are to be electrified and 79067 BPL consumers are to be
brought under billing net. Presently 51495 consumers have been informed by the contractor
and 36662 consumers have been billed).
Police system is ineffective in curbing pilferage. As per discussion with Mr. Abdul Hamid,
Vigilance Officer only 46 police cases have been registered and 50 persons have been accused
in Jorhat Circle from July09 to Nov10. Major observations by enforcement team are
o Hooking
o Excess load more than sanctioned load
o SPPS contractor providing unauthorized supply and collecting money
o DTR meters not working in SPPS contractor area
o BPL connection is provided to regular domestic consumers
o Police cases lodged earlier are not followed up
These observations are also corroborated through huge amount of outstanding dues against
disconnected consumers and less number of consumers applying for reconnection (Out of 3221 TDC
consumers attempted in special drive during 1st February to 15th February, only 884 reconnection
done).
Stopped/Defective meters in each subdivision to be replaced. Presently 22056 single phase
and 556 three phase meters in the circle are defective. Also there are approximately 100 to
200 unmetered consumers in each subdivision of 14 subdivisions.
MERCADOS EMI - NDPL
The IRCA consumers are billed based on manual reading and there is no effective check on
meter reading accuracy. As on date there are 772 IRCA consumers and average consumption
per consumer per month varies from 8038 units (Mar10) to 16776 units (Nov10).
ATC Consumers have huge outstanding dues (Rs 984 Lakhs for 8 consumers as on 28.02.11)
33 KV lines from Garmur 132 KV SubStation to Jorhat SubStation are very old and results in
high line loss and low reliability.
Meter Readers and Bill Clerks are not reshuffled and the performance is not satisfactory. Even
outsourced meter readers in Sub Division III are working for last 4 years.
Meter reading complaints are not regularly monitored by the SDO.
Fault repairing complaints (other than the calls received at Control Room) received and
attended by other teams are not recorded.
Payment due date lies within 16th to 30th/31st each month and there is huge rush for
payment at cash collection centre.
Bokahola Tea Garden, a consumer with load 1250 KW has installed DG Set with capacity of
1100 KVA and 1000 KVA as voltage at secondary side is very low. On 29/03/11 voltage was
observed to be 380 V. This consumer uses about 500 KW load during peak season through
DG set.
4.3. JORHAT PILOT PROJECT KICK OFF

During the Consultants last mission in Jorhat in July11, Mercados EMI have discussed few short term
recommendations for Pilot Implementation with the team from Jorhat Division I (Pilot project area).
Few key activities in this were
Meter Data downloading and Analysis for non-government bulk consumers
Monitoring of meter anomaly cases for bulk consumers and resolution of the same
Referral of disconnected bulk consumers to Sub-divisions for recovery of outstanding dues
Metering of all feeders at Substations
Monitoring and replacement of faulty meters
Monitoring and resolution of low consumption cases
Monitoring and age analysis of consumer complaints
The procedure to be adopted for these activities has been discussed with Jorhat Div. I team. Also the
responsibility centres and MIS format for monitoring the same have been finalized in consultation
with the Core Group headed by the DGM (Jorhat EC). We have requested the DGM (Jorhat EC) to
arrange for generation of these MIS reports regularly and to share with us for assisting them.
4.4. FIELD ACTIVITIES

4.4.1. SUMMARY OF ACTION PLAN IMPLEMENTATION STATUS
Short Term Activities Implementation Status
Data Analysis IRCA consumers
To ascertain correct billing Sporadic analysis of certain cases by MTI

To ascertain tampering/meter defective
cases
Complaint Data Analysis Data being captured, analysis are yet to be done
Field Activity IRCA consumers
MERCADOS EMI - NDPL
Short Term Activities Implementation Status
Data Downloading for Private Consumers Data downloading of some consumers are being
done (including consumers with load >500 KW)
Metering Rectification Action taken against cases analyzed
Action against theft Cases reported sporadically
Verification of dues against disconnected Action reported from one sub-division

cases
Data Analysis Small consumers
Exceptional cases with zero/Low Activity started after November Mission, resulted
consumption into replacement of around 1900 meters.
Complaint Data Analysis Data being captured, analyses are yet to be done
This will give benefit in next summer for proper
monitoring.
Field Activity Small consumers
Verification of zero/low consumption Result reported

cases
Replacement of stopped cases Result reported
Special Activities
Follow up of dues against high Result reported

outstanding cases
Follow up against consumers with Result reported

average consumption more than
connected load
4.5. HR: CHANGE MANAGEMENT AND COMMUNICATION CHANNEL

To enhance the communication channel and to imbibe the employees under Jorhat Pilot Project with
the inevitable changes in the overall structure in day-to-day operation, couple of workshops focused
on Change Management and Communication were held in Jorhat. It was impressive to see the
interest and engagement of participants in these workshops. As part of the workshops the
participants were also asked to do short exercises asking them to relate challenges they have had
with communications and in day-to-day operations and to make recommendations. Based on the
results of this exercises, combined with feedback in general during the workshop, the following
conclusions can be made:
a) Many managers feel that there is a need for improvement in communications and in fact
many suggest communications are now poor at ASEB and
b) Many managers deem that their effectiveness and performance are affected by the state of
communications.
The content of the presentations tried to leave behind some useful ideas for improvement in
communications. One of the suggestions is that communications is an integral part of management
and effective leadership and that, accordingly, should be afforded the same attention (in terms of
resources, process and training) as any other management functions such as planning and budgeting.
It is also suggested that communications is all the more important during the time of change that
ASEB is going through at this time.
MERCADOS EMI - NDPL
4.6. PROJECT OUTCOMES

During February Mission in Jorhat improvement in certain areas of initiatives undertaken has been
observed. Based on this, estimation has been made for potential benefit in these areas as follows:-
Replacement of Stopped Meters
Present Position Potential Benefit
Potential
Number of Increase in Increase in Number of Potential Increase
Increase in
stopped monthly Monthly defective in monthly
Monthly
meters consumption (in Revenue (in meters as on consumption (in
Revenue (in
replaced KWh) USD) 31.01.2012 KWh)
USD)
1521 156244 15625 6766 695034 69506
Meter Data Analysis of IRCA Consumers
Potential
Increase in
Number of Assessment Number of Potential Increase in
monthly
Cases Amount (in Cases to be Assessment monthly
revenue (in
Inspected USD) inspected Amount (in USD) revenue (in
USD)
USD)
228 41520 5716 540 98336 13537
Number of cases Amount realized Number of Disconnected Cases as Amount to be

resolved (in USD) on February'12 realized (in USD)
2333 284721 3883 385455
Load Enhancement through Consumption Analysis
Increase in Potential Increase

Number of Total load Number of Total load to
Fixed Charges in Fixed Charges
cases with increased (in cases be increased
per month (in per month (in
Load enhanced KW) observed (in KW)
USD) USD)
1060 2890 2525 1546 4215 3682
Cumulative impact of potential increase in monthly revenue and collection will result in increase of
billing efficiency by 4% (from 63% to 67%) and collection efficiency by 1% (from 93% to
94%). The AT&C Loss in Pilot Project Area can be reduced to 36% from present level of 41%.
MERCADOS EMI - NDPL
Potential benefits to the APDCL is approximately 21 million USD annually for reduction of
AT&C Loss by 5%
a) Major Challenges
JEC, Div-I has to monitor all IRCA cases as there can be many more cases with revenue
leakage
Meter replacement after analysis of low consumption cases for LT consumers has to continue
on sustainable basis. They are major source of revenue leakage
Time of receipt of complaints and time of resolution should also be monitored in next stage.
APDCL should approach these activities in more focused manner and identify benefits.
b) Synopsis and Way Forward

After implementation of the initiatives undertaken for Pilot Project during November11 to January12
an impact on revenue realisation has been observed. This project has also given an insight towards
key implementation issues. Summary of our observations on this project is as follows:-
Initiatives undertaken have measurable impact on Billing and Revenue Realisation. Initiatives
and experience in Pilot Project should be replicated across the organization for effective
reduction in Losses.
Initiatives have been identified and planned in July11. However, these have been taken up
effectively in November11. Allocation of dedicated resources is crucial for continuous
improvement in performance.
The initiatives undertaken in Pilot Project have been reviewed through Weekly MIS till date.
This has resulted in measurable benefits. Regular reviews at appropriate levels are crucial for
success.
New areas like revenue realization against SPPS consumers have been introduced in Pilot
Project area. The initiative for Loss Reduction requires be continuously reviewing and
improving further.
MERCADOS EMI - NDPL
III ACCOUNTANCY AND FINANCIAL MANAGEMENT
1. AS-IS ANALYSIS, BENCHMARKING PROCESS AND

STANDARDS
1.1. KEY OBJECTIVE OF AS-IS ANALYSIS

The As-Is-Analysis and gap analysis of the utilities financial management systems will examine the
adequacy and effectiveness of existing processes and procedures for financial management control
and accountability. It will cover the various aspects of management that are described in Section 1.4
below.
1.2. PROJECT PERFORMANCE MEASUREMENTS

The study is focussed on organizational systems; specifically, financial and accounting, not on the
financial policies and strategies of the companies which are properly the concern of their Boards and
top management. The effectiveness of the latter are measured by the companies bottom lines or
profitability while those of the former are measured by their soundness; completeness; compliance
with established rules; and consistency with Best Practices in comparable utilities with respect to the
following:
Accounting systems with special reference to their compliance with Accounting Standards;
Management policies, planning and efficiency review process for the effective management
and maximization of the utilities financial resources and to ensure that expenditures are
within available funds;
Accounting and financial management record keeping system for financial transactions that
provides timely, accurate and useful financial reports;
Control and Risk Management Systems to protect and take corrective steps against
insolvency or fraud. This will include the delegation of authority to approve specific finance
transactions; the exercise of authority such as the signing of transaction documents; paper
trail to verify the validity of transactions and the appropriate exercise of delegated authority;
and the monitoring of financial transactions; and
Mechanisms, extent and scope of the segregation of the financial management systems of
ASEB and its successor companies.
1.3. ACCOUNTING FUNCTION

The As-Is-Analysis of the utilities accounting systems maps the current policies, processes and
practices of the utilities with respect to significant accounting issues. This is primarily intended to:
Identify their gaps and shortcomings vis--vis the applicable national and international
standards;
Assess their adequacy to provide timely, accurate and reliable information for the utilities
policy and decision making requirements;
Evaluate the adequacy of internal checks and controls for the early and timely detection of
fraud, manipulations and inconsistencies in financial and operating results.
For clarity and ease of presentation, the accounting issues reviewed and the experts findings and
observations are presented alongside each other in the following tables.
Table 12 - As-Is-analysis of accounting system: APDCL
Subject / Issue Observations - Gaps & Shortcomings
Unbundling of ASEB ASEB was unbundled on 10 the December 2004 through the "Assam Electricity
Reforms First Transfer Scheme 2004 (AERFTS-2004). No norm / policy were stated
in the transfer scheme for the desired Debt to equity ratio of the new companies.
ASRFTS-2004 unbundled the ASEB in to the following:
Assam State Electricity Board (ASEB) (Holding Entity).
Assam Power Generation Company Ltd. (APGCL)
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution III-63
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Assam Electricity Grid Company Ltd. (AEGCL)

Upper Assam Electricity Distribution Company Ltd. (UAEDCL)
Central Assam Electricity Distribution Company Ltd. (CAEDCL)
Lower Assam Electricity Distribution Company Ltd. (LAEDCL)
ASEB was given the form of holding Company. The newly created utilities were
treated as subsidiaries of ASEB and got their Capital from Government of Assam
(GOA) routed through ASEB.
All newly created utilities were also made part of Pension Fund (PF) Trust. ASEBs
Employee PF Trust existed since 05-06-1993 and was continued after the
unbundling.
All personnel including those at H.O were allocated to specified companies.
Modification / Change in GOA modified the structure of the three Distribution companies along with AEGCL
Structure. and APGCL as independent GOA Undertakings by withdrawing Capital thru ASEB and
providing it as capital to APDCL directly. Thus the DISCOMS were delinked from
ASEB.
After the Audit of the DISCOMS in 2004-05, GOA notified Opening Balances on 29-
Dec-2007.
a) Re-bundling of three GOA notified the merger of the three DISCOMs into LAEDCL which was later
DISCOMS into one. renamed as Assam Power Distribution Company Ltd (APDCL) w.e.fr. 01-04-2009.
ASEB stood separated to become one of the four Government of Assam
undertakings in power sector.
Transitional and Till further orders of the State Government:

Residual Powers of ASEB
The revenues for the distribution and retail supply of electricity shall be
remitted by the DISCOMS in its entirety to ASEB and the latter shall
provide the amount required for the expenses of the transferee
The bulk purchase and bulk supply function of energy till further order of
the State
Implementation, coordination and monitoring of projects & schemes
supported by ADB (including counterpart funding), APDRP and other
schemes.
a) Purchase of Power - From 16-06-2009 ASEB discontinued trading operations. APDCL took over the
Power Cost purchasing of all power directly from APGCL, NEEPCO, NTPC, NHPC, DLF, MeSEB
and other traders. As per AERC Tariff orders the Uniform Bulk Tariff rate that was
set for APGCLs power supplies to the three DISCOMS applied to APDCL after re-
bundling.
Cost of Power Purchase includes the revenue expenditure of ASEB and Transmission
Charges but ASEB charges have not been reflected separately, which ought to have
been done.
Letter of credit Payment mode has been allowed to NTPC & NHPC. Other Suppliers
have other bilateral arrangement. The payments to the suppliers are now controlled
and made by H.O of APDCL.
b) ASEB Expenditure ASEB expenses are charged to APDCL as a part of Cost of Power.
ASEB will continue working more or less as an advisory and consultancy
organization for the States power sectors. It will also continue to perform the
residual planning, implementation and monitoring of capital projects, as there is no
State order yet divesting it of this responsibility. Therefore, ASEBs expenses should
not be added to the power purchase cost but should be treated as Capital
Expenditure in progress of related areas i.e. Generation (APGCL, Transmission
(AEGCL) & Distribution (APDCL) because planning function of ASEB is not confined
to APDCL only. However, according to ASEB officials the current charging practice
was an internal decision because the amount left as ASEB expenditure is small.
Administrative Structure APDCLs top management consists of a Board of Directors and a full time Managing
of the Company Director.
The structure of the company is as follows:
Office Name N0. Headed by
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Distribution zone 3 GM of CE
Distribution Circles 15 Deputy GM
Stores Circles 1 Do
Distribution divisions 42 Sr. Manager
Store Division 03 Sr. Manager
Meter Testing Divisions 03 Sr. Manager
Industrial Revenue 11 Sr. Manager

Collection Agency
(IRCA)
Each Distribution Division has 1 to 2 revenue sub divisions headed by Managers.

The System of Revenue Collection of Industrial Area through an independent unit of
the Company is unique to and good system of APDCL.
a) Accounting Setup There was no Finance Director in the three DISCOMS before re-bundling. While the
position was created after, it has not been filled.
A Chief General Manger (CGM) who is Chartered Accountant currently heads its
accounts department. The service rules for accounting staff require a minimum
qualification of graduation for initial recruitment as Deputy Accounts Officer level
with preference for commerce graduates and professionally qualified persons.
Promotions are made on the basis of seniority. There is an on-going recruitment for
senior manager level positions but there has not been much interest from qualified
persons like CA and ICWA. MBA has not been prescribed. There are three Chartered
Accountants including CGM and three ICWA.
The prescribed levels of Accounts Executives in the field are:
Sub Division Level: Deputy AO (with two junior supporting staff)
Divisional Level: Account Officer (with two junior level supporting staff)
Circle Level: Assistant Account Manger - 1, Accounts Officer - 1, Deputy
Accountants Officer - 1, with two supporting staff to each.
Zonal Level Senior Accounts Manger - 1, Accounts Officer - 1, Assistant
Accountant Officer - 1 with two supporting staff each.
At Corporate Level they work has been divided in to various functional areas and
has been provided the appropriate level executives and supporting staff.
The personnel complement at the Executive is currently as follows:
1. Chief General Manager 1
2. Deputy GM 3
3. Senior Manager 17
4. Assistant Manger (ama) 20
5. Accounts Officer 77
6. Deputy Accounts Officer 147
7. Assistant Accounts Officer 57
8. Accounts Assistant 2
9. Sr. Accounts Assistant 24

10. Jr. Accounts Assistant 5
11. LDA cum Typist 4
Total 363
There is imbalance between executive level and junior level.
Accounting work is not computerized. Some officers were provided with computers
for simple typing and compilation work. With training, the present staff complement
of the accounting department should be sufficient if operations are fully
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computerized. However, most of the executives are at the higher side of the age
and training could be rather difficult.
b) Sectional Journal There is no awareness of the need to maintain sectional journals and their
System of Primary importance in internal control, the early detection of mistakes and in facilitating the
Books ( Cash Book, accounting of cash.
Journal & General
Ledger) are replaced by
Sectional Journal
Method
c) Capability of The current system is not capable because:

Accounting System of
doing Exceptional Tasks, Accounts are still largely prepared manually and are thus prone to human
Generation Specific Data errors;
for Management Use in Management tendency to ask for the same data in different formats;
a systematic manner
While primary data is available to generate financial/accounting
information for different purposed; the information required is prepared in
a subjective manner; and
Control / Secondary Books of Accounts are not maintained at the primary
Accounting Centres.
d) Custody of There is no record room for the custody of accounting records at Head Office.
Accounting Records Maintenance of a record room is standing and standard practice and is also required
in the State Government rules on the maintenance of records. Income tax rules also
require 15 years life for accounting records.
There is some record keeping arrangement at Sub Division, Division and Circle
level.
i) Convergence with APDCL have no internal competence to make a switch over from Indian Accounting
International Financial Standard to the more complicated IFRS.
Reporting Standards
(IFRS) Indias Institute of Chartered Accountants of India (ICAI) has declared adoption of
IFRS from financial year 2011-12.
The Government of India will notify the accounting norms for the switch to IFRS by
the end of Dec 2010 which shall be applicable from 01-04-2011. This timeline may
be moved to 2012-13. All 37 Standards has to be notified as fully compliant with
IFRS convergence guidelines and shall apply to all companies with net worth of Rs.
1000 Crores and above. For other companies it will be notified later.
Accounting Issues i) Every distribution company is a primary and complete accounting unit.
Computerization & Unit
Accounting Monthly Accounts are required to be sent and are regularly submitted to Head
Office. But there is no regular monitoring to ensure that monthly accounts are
submitted according to schedule. There is no monthly consolidation at Corporate
Office.
Accounts are consolidated yearly but there is no transfer of balances.

Accounting in APDCL field units and at head office is computerized. However, as
commented on by CAG, accounting processes and codes are not uniformly followed.
ii) Head Office Expenses There is no system of allocation of H.O expenses to units in a fixed ratio.
H.O Account are kept independently while expenses are met out of funds primarily
controlled by H.O. HO annual accounts are merged with those of the Units as
corporate final Accounts.
The system lacks accountability of H.O for its expenses as it does not involve any
upper limit for H.O expenses except through the budgeting system.
iii) Share Capital APDCL came into existence for 01-04-2004 but share capital has not yet been
formally allotted to GOA as shareholder which is required by the Companies Act -
1956. It still appears as Share Deposit (Rs. 455809731 on 31-03-2009). This delay
is abnormal. Government has the right to recall the Share Deposit. No norm / policy
was Stated in transfer scheme for Debt; equity ratio. In addition, the Authorized
Capital of the companies are less than the amount of Share deposit hence, need to
be suitably increased including for future investment in share capital.
The AERC Directive in its Tariff order for 2008-09 & 2009-10 requires APDCL to
"Increase the Authorized Share Capital to covert a Share Deposit into issued
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subscribed & Paid up Capital".
iv) Reserves and Surplus The nature in not clear. It appears that the GOA loan of Rs.1238.59 lakhs was
a) Grants for Capital waved at the time of unbundling.
Assets and donated
capital.
v) a) Loan Funds - The following loans are being classified as unsecured which seems to be wrong for
Unsecured Loans the reasons given below.
ADB Loan: Govt of India and State Government provide collateral
guarantees and the latter has assumed responsibility for repayment hence
it is fully secured loan.
State Govt. Loan: ASEB / APGCL must have given counter guarantee.
GPF Balance: it is not a Loan but employees accumulated fund of GPF
which as per GoA GPF rules carries government guarantee. It should have
been classified separately as Funds.
b) Whether there has There have been few cases of default. Generally prior consent from financial
been a case of default in institution is obtained. I n the case of Non Banking National Financial Institution,
the payment of interest there is a provision of a panel interest.
and repayment of
instalment
Assets not in use Or There is quite a high value of such assets. Quantification is not possible because
Abandoned / APDCL is in the same position as APGCL and AEGCL where the absence of a fixed
Decommissioned asset register has prevented the segregation of fixed assets in use and idle fixed
assets.
The failure to segregate and account is a violation of AS-18. The company retained
the services of a consultant to segregate the assets and to create Fixed Assets
Registers. The Fixed Assets Registers have been completed up to 2007-08.
In relation to this issue, the regulator had directed APDCL to "File Physical
Verification Report of Fixed Asset by a competent and reliable Authority".
a) Category wise The breakup is too broad and is not an adequate disclosure. The category wise
Breakup of Fixed Assets. breakup of fixed asset has been prescribed in Electricity (Supply) (Annual Accounts)
Rules-1985, which is still valid as covered under savings clause (Section-185[2] [d].
This requires a distribution utility to disclose voltage wise asset i.e. 33 KV, 11 KV,
0.4 KV & Metering Equipment as well as control and monitoring of related assets.
Compliance with the prescribed guidelines for category wise breakup may not be
possible at this time because of the lack of complete and updated asset registers.
Compliance with Accounting Standard cannot be established.
The AERC had directed the company to "Submit analysis of Capital Work in Progress
year wise beginning from financial year 2005-06 to 2008-09" and to "Capitalize
Capital Work in Progress after obtaining physical completion certificate along with
financial completion certificate".
b) Capital Work in Capital work in progress in the power utilities is always substantial and continuing.
Progress The system of classifying the expenditure to this head is on the basis of project
report. The system of conversions of capital work in progress is also fully
established but has not to be followed. This consists of: (1) preparation of closing
Project Report; (2) allocation of general, common & administrative expenses on the
creation of fixed assets, and (3) deciding the date for putting it to commercial use.
APDCL does not appear to have an institutional mechanism for the classification of
CWIP and timely action had not been initiated either by engineering or accounting
department leading to lower depreciation and non-disclosure of this important data.
In this regard, the Statutory Auditor have pointed out that the CWIP register
showing details of completion is not maintained and capital categories as asset in
the amount of Rs. 449.71 Crores in 2008-09 could not be verified. The regulator
had also directed the company to "Submit analysis of Capital Work in Progress year
wise beginning from financial year 2005-06 to 2008-09" and "Capitalize Capital
Work in Progress after obtaining physical completion certificate along with financial
completion certificate".
c) Depreciation on Fixed In the absence of shift log Book for Plant & Machinery Distribution Lines,
Assets depreciation has been charged (even on assets not use). This is a violation of
Accounting Standards, of the terms of the Distribution License granted by AERC, the
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Electricity Rules as well as of the Standard of performance of Distribution Network.

It also makes operational data unreliable and the cost of Distribution could be
incorrect.
In the absence of Fixed Assets register (including of Transformer & Distribution
Lines) depreciation is charged on the "Gross Value at any given time and as such
the depreciation is charged even on the assets whose gross value might have
already stood fully depreciated.
Section 205 of the companies Act, 1956 allows for the depreciation of an idle asset
if it is not discarded and not held for sale. Idle Assets that are used as standby
equipment in emergencies must also be depreciated.
In case of revaluation of assets (AS -10) depreciation could be provided on re-
valued amount but the difference of depreciation on revaluation portion has to be
debited to Revaluation Reserve. No revaluation has been done at APDCL.
d) Lien on Assets The statement that there is no lien on Assets does not appear to be correct because
most of the assets have lien of PFC loan & loan from other financial institutions like
LIC etc. But generally distribution Lines and transformers are free from lien. It is
mandatory to indicate Yes or No in the notes to accounts as per Schedule IV of the
Companies Act-1956.
Stores & Spares. a) An Amount of Rs. 47.35 Crores is shown as Material, stock net Shortage pending
Schedule -7 to Annual investigation. But there could be excess in some item as well as shortage in others
Accounts for the year leading to a lower net shortage. This account has been pending for a long time and
2008-09 increasing every year. There is need to expedite the investigation process and to
reflect the period of pendencys for over 6 months, 1 years, & 3 years.
There are Store Divisions under each zone are headed by a Central Store Circle
which caters to the need of all Distribution Division. The Related Stores related to
33/11 KV Sub Stations are also maintained at the sub stations itself. Capital stores
are also maintained at the Store Divisions.
Most of the Stores are not fully computerized; quantities / value registers are
maintained manually.
Stores and spares are under the Control of Engineering Department which is
assisted by Accounting. But Financial Accounting responsibility lies with Accounts
only.
ABC analysis is done in Power House Inventory only.
There is no Store Manual.
Issues are based on yearly fixed rates except for Capital Stores. Difference at the
end is adjusted thru Stock Adjustment Account. They Stores do not include "Scrap"
which may be substantial; hence these become prone to theft and pilferage.
b) Valuation of Issues APDCL follows the yearly fixed rate valuation system. Under this system, rate is
fixed for the entire year in advance and revised in the following year only.
Differences in the value of the closing Stock as per the yearly rate and the opening
Stock is adjusted thru the Stores adjustment Account.
The System is most unscientific and could lead to manipulation and fraud hence,
needs to be replaced by a more scientific system.
c) Physical Verification There is a regular physical verification system in the Store Division, but this not
of Stock & Assets adequate relative to the size (Audit Comment).
There was reportedly a big difference detected during the physical verification in
2009-10 but the actual figure in not yet available since the account for 2009-10 is
still being finalized. The combined figure for the 3 DISCOMS on 31-03-2009 was Rs.
47.35 Crores.
The cases of shortage in inventory found during the physical verifications conducted
in prior are still under investigation and have not been written-off. Similarly the old
and unusable items have neither been identified nor written-off.
The figures for the fixed assets are not reliable in the absence of a fixed asset
register.
Inter Unit A/c. Including Inter Unit Transfer is quite Common especially in Distribution & Transmission.
Material Transfers to Presently amount involved in APDCL is Rs. 491.10 lakhs for 2008-09.
other Units.
Accounting wise, Inter-Unit A/C at H.O should ideally show a nil Balance. Instead,
there was a huge Balance as of 31-03-2009 which is an indication that Debit Notes
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raised by H.O on the units were not responded timely. Some time there is a
variation without intimation to transaction originating unit. Duplicate copies of debit
notes are returned very late. As such there is always a difference in the debit raised
and cleared by Credit by receiving unit.
The accumulation of huge amounts as Debit in Inter - Unit Account and at corporate
levels provides an easy route to fraud and a convenient cover for the shortage of
cash or material. This is a serious lapse in accounting practice that needs plugging.
Inter-Unit Account for Cash Transfer form H.O / Unit to Head showing a Debit
Balance indicates negligence especially when transfers are also possible through
internet.
Schedule-24 Statement
of Accounting Polices
a) Depreciation Method Straight-line method has been adopted. It complies with Accounting Standards and
schedule - VI of the companies Act. The Electricity Act-2003 authorizes the
CERC/SERC's to prescribe the life of different assets and rates of depreciation for
the Generation, Transmission & Distribution utilities that is also allowed by the
Companies Act.
Sundry Debtors Receivable is always a problem in the distribution utility and receivables have
(Receivable) & whether crossed more than one-year sale (as commented by CAG).
Company has ever
thought of Factoring of
Receivables are not aged despite the fact that a large part is either fake and
the Receivable from
irrecoverable or doubtful.
Consumers
There is need to scrutinize all the receivable which are more than one year old to
decide the method of recovery or write-off. Unfortunately, Departmental staff is not
committed to this type of analysis.
There is no plan of Factoring at this stage. GOA may not allow it as it may lead to
harassment of the consumers.
Internal Audit There is an internal audit unit at HQ. It is supposes to audit the expenditure of all
distribution divisions as well as all revenue sub divisions. But according to the DGM
internal audit of expenditure had not been conducted in last many years and only
50% or even less of revenue sub divisions had been covered.
Internal audit is headed by DGM who reports to the Head of the Accounts of the
company i.e. Director finance, CGM, GM as a case may be.
A bigger problem relates to the non-compliance with the Internal audit objections. A
review of such audit report indicates that hardly any importance is given to them
and that internal audit is being done merely as a formality.
Statement on overdue The Micro, Small & Medium Enterprises Development Act, 2006 (MSMED) requires
bills and provision of every Company to pay the Bill of MSMED within 30 days or as per agreement. It
interest on such bills of also requires companies to disclose the outstanding amount of bills pending beyond
Micro, Small and 30 days on the date of Balance Sheet as well as amount of interest which is payable
Medium Enterprises. as per above Act, at 3 times of bank rate on monthly rest. Violation of the Act is
punishable.
No such disclosure has been made in the notes to Accounts which could be a
violation of the Act.
Accounting Documents There is no separate Accounting Hand Book for use by a new comer. But chart of
Account is available.
There is no institutional system of keeping the revision of Accounting system
updates as per changes and keeping the staff in the field aware of new changes as
well as for testing their level of awareness.
a) Method of There are many works / projects in the nature of Capital maintenance,
Classification of Refurbishment, Renewals, capacity addition, rehabilitation of existing Assets having
Expenditure of durable long term benefits. However, there is no institutional system for classifying such
without creation of expenditures into capital and revenue.
Asset, as Capital or
Revenue or deferred Works/projects of this nature are generally classified into revenue funding or capital
Expenditure. funding for provision in the Budget. Accounting hence, booking is supposed to be
guided by the same. Whether or not this is followed in practice, is still a matter for
detailed investigation. Although there is sufficient awareness of this method, field
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practice is not clearly known.
b) Project Monitoring The Comptroller and Auditor General of India (CAG) had observed that the company
uses PERT & CPM Technique for monitoring the progress of capital works. But PERT
/ CPM is employed at the time of project formulation but is never updated and is
hardly used for monitoring.
The degree of time and cost overruns is alarming.
Ideally the company should analyse the time and cost overruns and disclose these
in the detailed Notes to the Accounts. The analysis should follow the Government of
India Guidelines for the categorization of overruns as follows:
Cost increases due to time over run-cost of manpower
Cost increase due to upgrade of technology of equipment products and
process
Cost increases due to upward Revision capacity

Cost increase due to change in foreign exchange parity
Cost & Time overrun due to administrative delays as (1) controllable delays
(2) non controllable delays like acquisition of land etc.
Other reasons
Annual Accounts & As per Companies Act, 1956. Annual Accounts are required to be finalized. Audited
Statutory Audit Report. and Adopted by Annual General Meeting of the shareholders by 30th Sept every
year. Annual Account for 2008-09 is yet to be adopted while those for 2009-10 are
yet to be finalized.
No Annual Accounts can be adopted by AGM without audit report by the Statutory
Auditor, under the companies Act-1956. Reports by management on action taken
on qualifications in audit reports are required to be placed before AGM.
Follow up Action for next year is almost missing and as such qualification in the
audit reports are repeated again and again.
Cost Audit No cost audit is being done.
Internal Control System The large companies should have in built internal control system of automatic
counter check of the accounting and documents. In APDCL it is done partly
otherwise it is mostly missing.
Internal Audit is just one aspect of such an internal control system which in itself is
ineffective.
Method of Assessment
of Electricity
Consumptions
i) Tariff Categories There are ten tariff categories for LT Consumers and eleven categories for HT
consumers. The number of tariff categories appears to be large and needs
rationalization. The more the tariff categories; the more will be the metering. Billing
and collection problems and are more prone to fraudulent practices.
ii) Metering and Billing In some cities there are computerized billings but no door-to-door hand held
computer billing. In Rural Areas and industrial as well HT consumer billing is
manual. CAG has listed large no of discrepancies in Billing which are discussed in
this interim report separately.
iii) Method of The unmetered supply in rural areas (JEEWAN DHARA) (BPL) and some agriculture
Assessment of Electricity supply are slowly being converted into metered supply. But by the end of March
Consumptions in case of 2010 about 15,000 rural consumers were still on unmetered supply.
Unmetered Supplies
The level of consumptions of unmetered consumers is based on the average of
comparable metered consumers although it is possible that different methodologies
are followed in different divisions.
iv) Method of These are mostly metered supply.

Consumptions
Assessment of free There is a billing system as per applicable Tariff for supplies to generation and
Supply to Sub-Stations transmission offices. In practice such bills are rarely raised.
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offices of the three

Companies
v) Method of Accounting Accounting standards prescribe accounting on accrual basis. Presently no revenue
for Subsidized Tariff subsidy for subsidized tariff or relief to sick industries is forthcoming from the State
Including relief to Sick Govt.
Industries
vi) Accounting There is no such Billing. Annual gets adjusted in the cycle of 12 months.
Treatment of Unbilled
Energy in the Month of
March
vii) Accounting There is no separate accounting treatment. Differential over consumptions (as rate
Treatment for Minimum per unit) could be shown separately because the present method leads to artificial
Charges when actual effect of real rate of tariff.
consumptions is less
viii) Accounting of There is no case of large-scale remission.

periodic remission of
otherwise legally
recoverable arrears from
the consumers
ix) Payment of Security This is provided on a yearly basis and adjusted in the bills. But a large number of
Deposit of the old consumers who either deposited security at old rates or not paid any security
Consumers have small amount of deposit (even less then Rs. 100). Interest is not provided in
these cases leading to non-payment of interest to almost 40% of domestic
consumers.
Interest of security deposit, as per AERC order, is paid at bank rate plus 3%. As of
31-03-2009 total amount of security was approximately Rs 176 Crores and amount
of interest paid through bill was Rs. 12.32 Crores.
The Audit had commented that there was no reconciliation of the control figure of
Security Deposit with consumers subsidiary ledger balances.
x) Payment System by Cash & local cheques at specified payment centres under the control of revenue sub
Consumers & division accept payment. No out station cheques are accepted.
Dishonoured Cheques
Once a customer cheque is dishonoured no subsequent payment by cheque is
accepted from that customer. However, the customer is not formally notified and no
punitive action is taken.
Early payment discount on payment by cheque in allowed if cheque is collected

before due date.
xi) Metering of Open It is controlled and done by the Regional Load Dispatch Centre (RLDC) - (Central
Access Consumers, Spot Independent Unit), which provides daily statement of inflow and outflow of power to
Purchase from Traders AEGCL & APDCL.
of thru Indian Energy
Exchange The payment for spot supplies is required to be made in advance including
transmission charges.
Important Introduce rotation procedure for meter readers to reduce the possibility of
Recommendations of connivance with the consumers. DISCOMS have advised AERC that the
AERC for Improving the recommended system has already been implemented.
Electricity Distribution &
Bringing efficiency and Implement procedure for validation or sample check of meter readings.
certain consumer related According to APDCL this has also been introduced. Its effectiveness is yet to
operations having be assessed.
impact on Accounting Replacement of electro-mechanical meters by electronic meters is an on going
program. According to Distribution utility substantial work has been done and
still continuing.
The Load on distribution transformer should not exceed 80% of the
transformer capacity. This in fact is one of the technical operational
parameters but there are indications that it is rarely monitored and adhered
to.
Upgrade / Modify Distribution Network to LT - Less Distribution Network. this
is being discussed all national forum for a very long time but convergence to
LT-Less Distribution Network is a very costly and capital intensive, but it has
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not been introduced anywhere including Assam. If this is to be introduced, the

scheme and funding has to be formulated at the central level.
Replace conductors by Aerial Bunched Conductors (ABC). However, this is yet
to be taken up in Assam.
Management has not indicated any action plan as an organized campaign.
Large No. of Consumer The No of pare's relating to irregularities in consumer billing every year is quite
Related Audit substantial involving large sums and revenue loss. Following types of irregularities
observations by Internal have been noticed.
Audit & CAG
Undue Benefit to Consumers by downward revision of bills
Non-Realization of Surcharge
Failure to issue timely Bills & Carrying out of disconnections
Ghost Consumes on record. (consumers not existing on ground)
Delay in replacement of defective meters
Bill not based on meter reading but assessment
Acceptance of delayed payment without surcharge
Non- Recovery of Security Matching with the billing amount

Non-Conversion of unmetered consumers even after target date of 31-12-
2001
Billing under wrong tariff category
lack of timely action for recovery of closed cases
Not raising dispute before the court of Appeal on account of failure of the
consumers to deposit 50% of deposit amount.
Non-Recovery of additional Security.
Permanent Disconnection without removal of line from pole.
Deficiencies noticed in Computerized Billing System was introduced in 2002 under APDRP package.
Computerized Billing
System During audit (July 2009) CAG observed that there was no strategy formulated for
the implementation of the Computerized Consumers Billing Project leading to
different methods being adopted by the vendors. This resulted in multiplicity of
Tables and Statements used by different Division.
In number of cases, master data transferred to Computerized billing did not contain
essential information such as date or service connection, connected load, sanction
load, load security, incorrect or incomplete address, no indication of meter states,
type of meters etc.
Other problems encountered were:
Gaps in consumer ledgers
Duplicate meter numbers were given

Date of Payment on bill is before the date of billing
Payments were not computerized on a large number of cases.
No proper mechanism in place to restrict access to computers and software
to ensure use by authorized persons only
Absence of logical Access control like no user account password
No change management control was adopted

There was no Business continuity and recovery plan to ensure continuity of
business i.e. meter reading, billing & recovery
Backup system should be available to take place at short notice.
Other Important Audit Valuation of Stock was not in accordance with accepted principles, (Reference
Objections by Para 11).
Comptroller and Auditor
-General of India (CAG) Time & Cost overrun is rule rather than exceptions, (Reference Para 18 b)
Irregular fixation of erection price (This is a general comment about the major
contract under executions.
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There was a loss due to non-insurance of the project CLHPCL (100MW).

Large number of old claim against railways (about 61 cases) are pending due
to non settlement (amount involved 2.84 Crores) it seems that nobody is
following them properly because of the closer of BTPS [See Item no 9 (a)].
Follow up of Audit There are three types of Audit Objections. These are:
Objections
Statutory Audit- under companies Act-1956. No. of Audit Paras are recurring
year to year because there is no institutional system of compliance and follow
up.
Proprietary and Special Audit and Reviews by CAG (highest constitutional audit
authority public fund) - However, the coverage of CAG Audit are decreasing
every year.
CAG had commented that compliance is poor and some of the compliance requires
major changes. Some of the issues are too old hence, compliance is not possible.
These shortcomings will pose serious problems when IFRS is adopted.
a) Internal Control System of requirement, procurement, tendering & approval by tender

(Procurement System) committees is well defined and laid down and varies according to the value of
the tender / contract and delegation of power to the concerned executive.
Designing, quality control and testing parameters are done by Design and
inspection unit.
Payment of Bills systems is also well specified.
b) Introduction of Profit The company has not considered the possible introduction of profit/cost/investment/
/ Cost / Investment / accountability centres. The lack of interest may be due to the difficulty of fixing the
Accountability Centres transfer prices of energy and/or other common services.
c) Measurement of There is no existing mechanism to measure the efficiency and effectiveness of the
Efficiency & accounting system.
Effectiveness of
Accounting System Repeated audit qualifications and AERC directives for the company to address
certain deficiencies indicate weakness in the present system.
Formation of Audit According to the Companies Act-1956, every company must constitute Audit
Committees committees of the Directors to work and review all audit parameters and reports
and also conduct special investigations. However, no action has been taken to
comply with this requirement.
Placement of ASEB ASEB is a Statutory Organization of GOA and as such its Annual Accounts are
Annual Accounts before required to be placed before the State legislature. CAG commented that the Annual
State Legislature Accounts for the years 1996-97, 2001-02, 2002-03, 2003-04,2004-05,2005-
06,2006-07 and 2007-08 (8 years) have not been placed before the legislature.
This is a serious technical and Constitutional lapse.
Reconciliation of Since AERFTS-2004, only the segregation of the main Heads of Accounts in the six
Opening Balances on the parts pertaining to six different Units which came to existence were reportedly
effective date of undertaken, leaving the opening balances in the new companies duly reconciled
Unbundling 01-04-2005 with closing balances of erstwhile ASEB. Moreover, the opening balances taken are
also reportedly yet to be reconciled with the segregated group balances shown in
the unbundling order. In case the situation is otherwise, done the three companies
should provide certificates because it is not possible to countercheck the status of
this issue in the survey.
Bank Reconciliation of Formats have been provided and reconciliation is generally regularly done. The final
Cash Book (Payment) & reconciliation at the end of March takes more time because the adjustment of
Cash Book Revenue with pending interest, bank charges etc, is done by the bank.
the bank at primary
disbursing and
Accounting units and
collection of revenue at
the revenue Sub-
Division as well as at
Corporate level.
Authorization of The authorization to Executives (Assistant Account Officer & Above) are: (i) For
Entitlement of Personnel monthly payment of salary - increment etc., (ii) Earned leave and encashment and
Payments other paid leaves, (iii) Arrears if any. These are authorized centrally by Pay &
Accounts wings of corporate office and for local TA etc by Accounts Units at the
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place of posting as per the rules applicable to the concerned officer.

Executives are Self Billing employees while in certain units the office prepares the
Bills. For other staff, attached establishment units of the concerned office based on
orders applicable draw Bills.
A Register called Employees Earning register, of entitlement and other personnel
payments, deductions and such other related details are maintained separately for
each executives and employees. This register is kept in record for entire duration of
the employees service.
Accounting for Pension & There is a separate ASEB Employees Pension Fund Investment Trust (PF Trust)
Gratuity since 1993. The Trust is responsible for the payment of pension to retired
employees as per the rules.
The Companies make monthly contribution to the Trust based on the actuarial
valuation of contribution and fixed by the Trust. The Trust is supposes to make the
payment directly to the pension holder. But in practice the payment of pension is
made by respective companies and adjusted from the monthly contribution.
Banking System & Reconciliation of Cash Book with Bank Account is done regularly every month at
Accounting primary Accounting & Disbursing Units and at Corporate office. It is controlled and
monitored by a separate Bank Accounting cell.
Revenues collected in field units are transferred daily to the Corporate Office
revenue account. A monthly reconciliation statement is prepared to counter check
the credit posted by the Bank.
H.O releases fund to field Accounting & Disbursing Units for expenses taking into
consideration budgetary provisions and availability of funds in to account. Transfers
are made by Banks on t he basis of release order. But in case of revenue transfer
the Banks as per the standing orders does it automatically.
System of Bank Bank Guarantees generally expire on due dates whether returned to the Bank or not
Guarantees, Release, unless extension is given. However, since the release of the Bank Guarantees
Encashment etc depends on fulfilment of certain conditions like warranty period etc. The actual
return of Bank Guarantees to the Banks takes longer time.
Bank Guarantees remains in the custody of the Nodal Office of the work for which
Bank Guarantees was taken.
Taxes on Income Companies are assessed for Income Tax. All returns are being filed regularly and on
time.
No advance Tax is paid. No MAT (Minimum Alternate Tax) is paid because of no
Booked profit. TDS is deducted from the payment as per TDS rules and deposited
with the Tax Department.
Assessment done up to 2006-07. Assessments for 2007-08 & 2008-09 are in
process.
In the case of CAEDCL the following cases of dispute are pending in appeal:
Assessment Year 2006-07, Disputed Tax Claimed Rs. 7,66,21,801 Appeal
pending with Commission of Income Tax.
Assessment Year 2007-08, Disputed Tax Claimed Rs. 17,80,33,250 Appeal
pending with Commission of Income Tax.
Sales Tax / Trade Tax / Units executively handle these. H.O is not aware of any dispute pending with any
Service Tax / VAT Units.
Units are independently registered. There is no centralized registration payment or
assessment.
Reconciliation of In computerized billing it is part of system. In manual billing no reconciliation of

Consumers ledgers consumer ledgers in done.
Incentive for Generation No such scheme has been tried after unbundling of ASEB.
Stations and Collection
of Arrears
Accounting for Deposit Deposit works - Asset created is the property of consumer. Department gets only
works and Consumers the charges for doing the work like a contractor. Consumers contribution is a
contribution and cost of capital receipt and capitalized as a fund. Meters are provides and monthly rent is
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meter included in bills.
Adaptability of New / It can be adopted if introduced and training is provided (this does not refer to the
Modified Accounting switch over to IFRS for which is there is no competence in the system).
system
Conflicting order on Not a serious problem.

Accounting Issues
Maintenance of Not even 50% of the required books are maintained. But it was in the general
Subsidiary Books opening that many subsidiary ledger / record were prescribed. This needs to be
rationalized by early computerization.
Flow of Accounting Data Units send monthly accounts such as the monthly trial balance and statement of
account and prescribed returns regularly to H.O. There is no regular
information/data submission requirement for managerial decision-making purposes.
Accounting for capital Capital stores are capitalized with the projects. Quantities of those in stores are
stores recorded and are issued without indication of values. There is no problem in the
accounting of capital stores in Transmission and Distribution.
Departmental Action Not taken and generally showed ignorance.

against the Defaulting
officers Inducted by CAG
Cash Vs Accrual Expenditures and revenue are recorded on accrual basis.

Accounting
Accounting Application The AERC has discussed the need for quality circles. At the same time there is also
Committee & quality a need for a standing Accounting Application Unit at the H.O. These could be
Circle for Accounts considered when conversions to IFRS are undertaken.
Resolution of Problems There is no Institutional Mechanism for problem resolution. However it is normally
done by phone.
Meeting of Accounts There are no such regular meetings. Meetings are held on specific issues at zonal
Executives and H.O.
O&M Methods Operation and maintenance is performed either internally by the concerned
departments; or externally by contractors and/or agents.
Name and Address of U C Majumdar & Co.

Statutory Auditors
Chartered Accountants
Firm Regn No. 304066E
Guwahati Assam
Name and Address of Pawan Pratik & Associates

Statutory Auditors
Chartered Accountants
Firm Regn No. 304066E
Guwahati (Assam)
Summary of Major Inter-Unit reconciliation.

Problem Areas/Gaps in
Accounting System Reconciliation of Opening Balances on the date of unbundling.
Non Write-Off of dead assets not in use or abandoned due to non-availability
of Asset Register.
Lack of physical verification of assets.
Non Write- off of shortage and excess found of physical verification as the
administrative procedure for write-off is difficult and lengthy and
accountability is required to be fixed on defaulting officers.
Delay and non-compliance of Audit Para's due to delayed detection of
mistakes.
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Untrained staff.
Lack of guidance of accounting problems.
1.3.1. BENCHMARKING PROCESS AND STANDARDS

This part of the report replaces the entire discussion on the subject in Interim Report 2.
Consistent with the objectives of this Study, the following benchmarking criteria were adopted for the
selection of the Best Practices of comparator utilities:
Full Compliance with all Accounting Standards, and with the Indian Generally Accepted
Accounting Principles (GAAP) subject to allowable deviations where they apply;
Installation of an effective Internal Audit System;
Installation of an effective Internal Control System and one that is linked to the financial
management functions;
Constitution of the Audit Committee of the Board of Directors as required in the Companies
Act;
Availability and adequacy of accounting Hand Books, Guide Books, Manuals, Standard Formats
for the preparation of reports and information and communication Equipment to facilitate
reporting such computers and access to office e-mail for management and staff;
Regularly updating of Accounting Primary and Subsidiary Control Books;
Timely Reconciliation of all Control Books with consolidated Control Account;
Responsiveness to change such as but not limited to plans for the migration to IFR;
Sustained capacity building of the staff and hardware for enhanced reliability, transparency and
dynamism.
a) Comparator Utilities
Two power utilities (I national and 1 State Electricity Board) were selected for their Best Practices
covering all the aspect enumerated above except for migration to the International Financial
Reporting Standards (IFRS) which are still in transition.
a.1) National Thermal Power Corporation (NTPC Ltd)
NTC Ltd has 25 power stations that are primarily thermal- oil and coal based with over 30000 MW
installed Capacity. (It is a Navratna one of the Nine Jewels of Public Sector) with global presence in
the Thermal Power Houses. It is also a central Pool to assist States State Electricity Boards and power
companies.
a.1.1) Human Resource Management
Company takes pride in its highly motivated and trained manpower that has substantially contributed
to bring the Company to its present strong position. The Company strongly believes in achieving
organizational excellence through human resources and follows a People First approach to leverage
the potential of its employees to realize its business plan.
a.1.2) Training and Development

In consonance with the corporate vision of being an integrated power major, the Company facilities
the development of all-round competence of its people in new business areas like mining, hydro,
nuclear, distribution and other facets of operation , maintenance and project execution skills. The
Power Management Institute (PMI) is NTPCs apex training and development centre providing planned
as well as need based programmes in technical, managerial and information technology areas both
for NTPC employees as well as for other organizations.
a.1.3) Environment Management

The Company is taking a number of initiatives towards preservation of all elements of environment by
providing state-of-the art pollution control system, strict environment monitoring, judicious use of
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natural resources (coal, gas, water, and land), as well as being undertaking studies on the
environmental impact of plant operations and the like.
a.1.4) Cost Audit

The Cost Audit Reports for the year 2005-06 were submitted for the first time to the Cost Audit
Branch in August 2006.
a.1.5) Risk Management

In order to reduce dependence on conventional fuel, the Company is foraying into hydro, nuclear and
non-conventional energy sources. As a step in backward integration, the Company is also entering
into coal mining business and also natural gas value chain.
a.1.6) Internal Control

Company has a sound system of Internal Controls for financial reporting of various transactions,
efficiency of operations and compliance with relevant laws and regulations. Suitable delegation of
powers and guidelines for accounting has been issued for uniform compliance. In order to ensure that
all checks and balances are in place and all internal control systems are in order, experienced firms of
Chartered Accountants in close co-ordination with Companys own Internal Audit Department conduct
regular and exhaustive internal Audits. The Committee on Management Controls periodically reviews
important findings of different Audits and closely monitors compliance with the Internal Control
System.
a.1.7) Committees of the Board of Directors

The Board has established the following Committees:-
a) Audit Committee.
b) Shareholders / Investors Grievance Committee.
c) Committee on Management Controls.
d) Contract sub Committee.
e) Project Sub Committee.
a.1.8) Code of Conduct

The Board of Directors has laid down two separate Codes of Conduct one for the Board Members
and another for Senior Management Personnel. These are aligned with the Companys Vision of
ethical and transparent management.
a.1.9) Whistle Blower Policy

The Company has adopted a Fraud Prevention Policy which provides for a Whistle Blower
mechanism for the reporting of fraud or suspected fraud involving employees of the Company as well
as representatives of vendors, supplies, contractors, consultants, service provider or any other party
doing any type of business with NTPC. All reports of fraud or suspected fraud are investigated with
utmost speed. The mechanism for prevention of fraud is also included in the policy.
a.1.10) Energy Audit

Regular in-house energy audits in the areas of auxiliary power consumption, water balance, cooling
water system, compressed air, coal handling plant, MGR, Lub Oil System, Air Conditioning, Ash
handling system, GT Compressor, GT open cycle efficiency, lighting, WHRB performance etc.
a.1.11) Auditors Report Aspects of Efficacy of Accounting System

We conducted our audit in accordance with Auditing Standards generally accepted in India.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatements. An audit included
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examining, on test basis, evidence supporting the amounts and disclosures in the financial
statements. And audit also included assessing the accounting principles used and significant
estimates made by the management, as well as evaluating the overall financial statement
presentation. We believe that our audit provided a reasonable basis for our opinion.
We have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of books;
In our opinion, proper books of account as required by law have been kept by the company so
for as appears from our examination of those books.
Annexure to the Auditors Report
The company has generally maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
All the assets have not been physically verified by the management during the year but there is
a regular programme of verification which, in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. No material discrepancies were noticed on such
verification.
Substantial part of the fixed assets has not been disposed of during the year.
The management at reasonable intervals has physically verified the inventory.
The procedures of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size the company and the nature of its business.
The Company is maintaining proper records of inventory. The discrepancies noticed on physical
verification of inventories, wherever material, have been properly dealt with in the books of
account.
We have broadly reviewed the accounts and records maintained by the company pursuant to the
Rules made by the Central Government for maintenance of cost records under section 209(1) (d)
of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. We have not, however, made detailed examination
of the records with a view determine whether they are accurate and complete.
a.2) Uttar Pradesh State Electricity Board & 8 Successor Companies

a.2.1) Management of Float in Cash Movement
1. (a) The main Cash Book in Head office is based on the actual transactions in the Bank.
The bankers of the Board and successor companies keep two accounts, one for crediting
receipts from field units and second for expenses.
(b) The senior person from H.O collects the information from Banks & all Credits /
transfers received are accounted for in Main Cash Book. The Balance received in Receipt
Accounts are automatically transferred to Payment Account which is are in turn
transferred, as per standing arrangement, to Payment Account of the Main Banker.
(c) All cheques are drawn on the main banker and are taken up in the cashbook on the
basis of cheques presented to the banker.
(d) The SEB and its successor Companies have a bank overdraft facility for float
management. The bank overdraft account has fully been utilized. The daily balance in the
Main Payment Account of the day is transferred to this account and restored back to the
main Payment Accounts. Thus no balance is left in the Bank Accounts of any banker while
the overdraft account is cleared and restored every day ensuring full float utilization.
2. There are more than 500 Units where disbursements are made from the Payment
Accounts to which funds are transferred by H.O. Receipts are credited to the Receipt
Accounts and remitted to H.O daily / 3 times a week. No mixing up is allowed. There is a
standing transfer to each disbursing unit for monthly pay and salary by its main branch
at H.O. At the same time, there is arrangement with over 100 such units where a fixed
amount is credited by the Banker to the Payment Account of the unit on the 1st day of
every month and debited in its main Branch at H.O with the similar amount. This avoids
the Float for 10 Days in transit. Majority of bankers have yet to introduce E-transfer
thus float of few hundred cross every month is eliminated and fully utilized.
3. In the case of the Generation Company, there is a daily requirement fund. Arrangements
are in place for daily fixed amount credit in Unit Accounts and debited at the Main Branch
at H.O. Additional funds are provided by transfer as required.
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a.2.2) Introduction of Section Journal System

The Sectional Journal System was introduced by PSEB. The main classification of the cash
expenditure is done through the following three sectional journals:
1. Salaries and Wages Journal (SJ-1)
2. her Establishment Expenditure and Miscellaneous Payments Journal (SJ-2)
3. her Payment for Stores Services, etc. Journal (SJ-3)
All the payments relating to the salaries and wages, ex-gratia and overtime, and the like pass
through the Salaries and Wages Journal (SJ-1), while all other payments to staff, like travelling
allowance, conveyance and medical reimbursement, travelling allowance advance, advance for pay
and contingent charges pass through ther Establishment Expenditure and Misc. Payments Journal
(SJ-2). All other payment-vouchers are classified and pass through the ther Payments for Stores
and Services Journal (SJ-3). In the new accounting procedure, the main classification of the
expenditure will be done through Sectional Journal and as such the payment once entered in any of
the Sectional Journal will be included in months expenditure though the vouchers may be held up for
payment with Cashier for want of funds, etc.
The erstwhile .P State Electricity Board introduced the system of disbursement of salaries wages
to staff though banks. nder this system the employees whose claims are drawn through a bill are
required to open a Savings Account with the Bank and the cheque for the net amount payable to
these employees is issued in the name of the Bank with the instructions to credit the proceeds of the
same to the Savings Accounts of the individual payees as per Statements enclosed. The disbursement
is, however, shown in the Cash Bank of Salaries Wages of Staff (Form 2) and acknowledgement of
individual employees continues to be taken up on the Acquaintance Roll as usual.
The function of the Divisional Accountant with regard to disbursement of salaries wages is just
limited to that of the Treasury fficer. That is, he is not concerned with the disposition of the amount
transferred to the Cash Book for Salaries Wages but will, however, continue to scrutinize them at
the time of his periodical inspection of the sub-division.
At the close of the months transactions, the total debits and credits under various heads of accounts
from all five sources, i.e. sectional journals 1, 2, 3 and Main Cash Book are compiled in a register
which is called Consolidation Register. There is no need for preparing the cash outlay for the purpose
of monthly account as the Consolidation Register already serves the same.
a.2.3) Internal Audit tsourcing
Internal Audit in most of erstwhile State Electricity Board and its successor Companies was not an
effective tool for Corporate Governance mainly because was neither independent nor its scope of
functions specially laid down. The function of an Internal Audit could not be under narrow limits but
all-inclusive depending upon the perception of management. In SEBs internal audit unit was a unit of
Financ Accounts with interchangeable staff. The situation of internal audit after unbundling of most
SEBs became more uncertain as there was a change over from a Statutory institution to a Company
under common commercial legal framework.
The successor companies have chosen to outsource the internal audit of field units to Practicing
Chartered Accounting Firms. The guidelines have been given to these firms, formats of reporting
have been prescribed for each function. However recent feedbacks indicate that this policy has not
yet delivered improved results over those of the previous practice, hence it would be premature to
call it an Established Best Practices.
1.3.2. GAPS IDENTIFICATION AND ANALYSIS

The gaps in the accounting systems and processes are common to the three utilities. They fall under
the following categories:
ganisation Standards and Management
Accounting System I Technology standards Related
Accounting System II (Competence Related)
Accounting System III (Classification Related)
Project Monitoring Related
Internal Control and Legal Compliance Related
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Reconciliation and other Areas of Concern

The specific areas/processes of concern are:
a) Reconciliation and Classification of Opening Balances on 01-04-2005

At the time of their unbundling, the Government of Assam (GOA) left it to the new companies to
break-up and classify the transferred accounts from ASEB into their proper heads. This task as well as
their reconciliation with ASEBs closing balances as of 31-03-2005 has not been accomplished. As a
result, the companies accounts are unreliable, susceptible to manipulation and difficult to audit. The
CAG appointed Statutory Auditors are not able to complete the audit except with large number of
adverse qualification.
b) Director of Finance
The position had not been filled since unbundling; hence, a major functional department is headless
and working with stopgap arrangement. The failure to appoint a permanent finance director is
contrary to the guidelines of the Government of India for Government owned companies specially
power companies that are successors of the State Electricity Boards.
c) Share Deposit
The amount of Share Deposit exceeds the Authorized, Issued and Paid up Capital on 31-03-2010.
This is a violation of the Companies Act. It could appear as unsecured loan unless the authorized
capital is increased to this level.
d) Classification of Capital Maintenance Expenditure into Capital, Revenue or

Deferred Revenue
Accounting Standards (AS) 6, 10, 16 require the capitalisation of Capital maintenance,
refurbishment and Revenue expenditure if they result in long-term benefits such as longer asset life
and capacity improvement. The utilities have not adopted a mechanism for its implementation and
accounting treatment in the field units.
e) Formation of Separate Audit Committees

Despite being a legal requirement in accordance with Section 292 A of the Companies Act 1956, no
such Committee has been constituted. The constitution of this Committee is also a key measure of
good corporate governance, which the Ministry of Corporate Affairs treats as a major requirement.
f) Accounting Application Committee / Unit Separately for each Company

(Internal Unit of Corporate Office)
The field Accounting Units apply varying accounting practices. There is no mechanism at the Head
Office such as accounting manuals and handbooks to ensure uniform accounting application.
g) Internal Control System

There is no internal accounting control system to ensure that those assets are protected and that
accounting records are complete and accurate.
h) Maintenance of Subsidiary Control Books

Most of the Common subsidiary control books, which were duly prescribed, have disappeared due to
the lack of Internal Audit, Internal Control and shortage of staff. The maintenance of subsidiary
control books is part of the normal responsibilities of any Accounting unit.
i) Important Recommendation of Assam Electricity Regulatory Commission

(AERC)
The utilities fail to comply with many of the recommendations of the AERC such as those on the
preparation of updated asset registers and the proper justification of Capital Expenditures.
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j) Audit Observation of Internal Audit and Report of Comptroller and Auditors

General of India (CAG)
The CAG Report and observations are not promptly addressed.
k) Statement on Overdue Payment and Interest on the Bills of Micro, Small and
Medium Enterprises
The Micro, Small and Medium Enterprises Act of 2006 requires the payment of the bills of Micro,
Small and Medium Enterprises within 30 days and 10% interest on delayed Payment. There is hardly
any awareness in the utilities of this legal requirement that is reflected in the failure to reflect the
status of compliance in their Notes on Accounts and its inclusion by the Statutory Auditors in their
report.
l) Cost Audit
Sections 233 B along with sub-section (1) of section 227 of The Companies Act mandate Cost Audit
that is not being undertaken by the utilities.
m) Statement of Non Adherence / Part Adherence of Accounting Policy

The Qualified Statutory Audit Reports puts a question mark on the Capability of System and
Management. There could be explanations on adherence and if this were the case, it is desirable to
include in the Statement of Accounting Polices as a part of Annual Accounts. The need to make it
more specific is a legal requirement as well.
n) Accounting Personnel Imbalance Revision of Service Rules and Induction of

More Staff
Service rules have not been revised in line with the requirement for more professionally qualified staff
at appropriate level with performance based promotion guidelines. The revision could however be a
long process that will require legal opinion and the involvement of GOA.
There is currently an imbalance between the executive levels and staff levels; estimated at 90:10
with a large number of vacant positions. There is no written system of appointment and qualification
criteria for Executive Working Level.
o) Capability of Accounting System

The vulnerability of the accounting system is due to the combination of gaps in Accounting processes
and control procedures; inadequate automation; lack of manuals, handbooks, chart of accounts and
the like; and inadequate staff training.
p) Compliance with Schedule VI of Companies Act 1956 and Accounting

Standards
The utilities and their accounting system still have to adopt to the Companies Act which is made more
difficult by the dispersal of the core accounting staff to the 3 utilities. In addition, there was less
emphasis on Accounting Standards in the past since most of them were advisory in nature. Their
accounting system was not designed compatible with Schedule VI of the companies Act.
q) Assets not in Use / Abandoned / Decommissioned / Fixed Asset Register

The lack of a fixed asset register is a serious gap that had been pointed out by CAG, AERC and
Statutory Auditors. It leads to unreliable asset values, inventory, and depreciation and could cause
theft. Attempts to draw-up a fixed asset register have not yet succeeded.
r) Capital Work in Progress

Completed works are not promptly capitalised when put to commercial use but instead continue to be
booked as Capital Works in Progress (CWIP).
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s) Accounting for Stores and Inventory

Accounting for stores and inventory is a critical problem. The gaps include
Inability to adjust the or write-off from inventory the Shortage or Excess found on physical
verification due to lengthy and prolonged investigations;
Absence of computerisation;
Insufficient physical verification;
Different valuation for consumption and closing. It is IO in Transmission, yearly fixed item
rate for Distribution and Average Annual Cost in Generation;
No proper inventory system or method adopted;
Capital Stores are not maintained separately and issued on a value involving duplication of
expenditure which stands capitalised at the time of procurement of plan and equipment.
t) Electricity Accounting Rules

The utilities continue to apply the Electricity (Supply) (Annual Accounting) Rules that was introduced
in 198 without incorporating the major changes in accounting standards and other rules and
regulations that were introduced in the last 2 years. The Manuals, mats and Reports are not
available.
u) Internal Audit
There are two teams with 2 members each in APDCL that covers over 62 units up to division level and
about 80 revenue sub-divisions. About of revenue sub-divisions have been covered to date.
Internal Audit of expenditure has not been performed while Review ork was not done. Thus the
internal check and balance is largely missing.
v) Reconciliation of Consumer Ledger

Reconciliation and updating of Consumers Ledgers, e.g. for receivables and other consumer date is
mostly manual and unsatisfactory. There is an urgent requirement to accomplish this before the full
migration to a computerised system.
w) Accounting Record Room

There is no proper Record Room, i.e. equipped with equipment indexing, termite and fire treatment,
rack and other Equipment for the safe custody of records despite the requirement of the state
custody of all Accounting Records at each Accounting Unit and Corporate Office for different periods.
The following are the required periods for the custody of records
Section 209 of Companies Act prescribes 8 years;
Income Tax provides for 6 years, but requires 10 years in case of raids /
Investigations hence effective period is 11 years;
Asset are to be registered until disposed off/ abandoned;
Personal records of employees for the purpose of pensionable jobs-33 years;
GP / P-until superannuation;
Hydro project (drawings and contracts)-double the life of the project
x) Convergence of International Financial Reporting Standards (IFRS) with

Indian Accounting System
It will be introduced in India from 01-04-2012. The utilities have yet prepared for this.
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1.3.3. RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION PLAN

a) Development of Proposal for Integrated Financial Management Framework
The capability of the accounting system to deliver reliable, complete and timely information depends
on the satisfactory resolution of the gaps identified above. The possible solutions in the form of action
plans are discussed below. They are divided into short-term, medium-term, and long-term based on
the appraisal of their necessity and implementation.
b) Specific Actions Recommended, Budget, and Expected Impact

b.1) Short term Actions (Quick Wins)
b.1.1) Opening Balances on 01-04-2005 and Break-up of Group Heads
Action Plan
o Completion of the break up among Generation, Transmission, Distribution of all Group
Heads on 31-03-2005 (Audited);
o Break up of Group Heads into detailed Heads as per the closing Detailed Trial
Balances on 31-03-2005;
o Reconciliation of detailed Trial Balance with Primary Accounting Units. Preparation of
separate consolidated closing Trial Balance for each of the 3companies;
o Separate recording of the discrepancy between the detailed Trial Balance and Group
Balance in a Suspense Control Account supported by a Suspense Control Register;
o The Consolidated Balance on 31-03-2005 as per the Detailed Trial Balances of all
Accounting Units to be taken as Opening Balances as of 01-04-2005;
o Consolidated aggregate balance in Suspense Account to appear as separate Opening
Balance under the proper group.
o Corporate Account Unit of each Company to continue to reconcile the Suspense
Account on a Regular basis from 2011-12 only. There will be no need to reopen any
years Account until it becomes close to zero; if it is an insignificant amount, charge to
P & L A/c as Debit / Credit of prior period and write Ok.
Budget: No financial outlay. It will be qualitative change and satisfactory compliance. It will
be compliance of Audit objectives and will provide authenticity to Accounting Data.
Impact Assessment: Compliance with Audit Objections, reliability and accuracy of accounts.
Implementation Responsibility
o Combined Team of the three Companies to break up among the utilities
o Separate ad-hoc team of 2 employees under the Corporate Accounting Unit of each
company to continue the reconciliation of suspense account.
Implementation Imperatives
o Computer Program to prepare consolidated Detailed closing Trial Balance of each
Accounting Unit as of 31-03-2005 and for the transfer of Consolidated Difference to a
Suspense Accounts in newly created account;
o Availability of Detailed consolidated Trial Balance in Field Accounting Units;
o Creation of an ad-hoc team for this purpose in each company.
Performance Monitoring Indicators
o Monthly Progress Report to Audit Committee or Board of Directors.
b.1.2) Accounting Setup

Action Plan
Appoint a regular Director of Finance for at least three-year tenure.
Budget: Approximately Rs. 2 Million equal to US$ 44 thousand annually, which is equal to the
annual salary/benefits of other Directors in the Companies.
Impact Assessment: Clear management responsibility and lines of authority; timely and
proper resolution of finance and management issues brought for resolution. The appointment
is also in line with the guidelines for public sector undertakings issued by the central Bureau
MERCADOS EMI - NDPL
of Public Enterprises of the Government of India. As successor companies to ASEB, it will

align the companies with the practice of other unbundled companies such as those in UP, MP.
. He will lead all the Financial and Accounting activities.
Implementation Responsibility: Government of Assam and Chairman of the Board of Directors
of each company.
Implementation Imperatives: Government of Assam to facilitate appointment.
Performance Monitoring Indicators: Appointment within 6 months.
b.1.3) Share Capital

Action Plan: Either convert the excess Share Deposit Amount to Paid up Capital in FY 2010-11
or transfer to "Unsecured Loans" from GoA.
Budget: No financial outlay.
Impact Assessment: Legal compliance.
Implementation Responsibility: Company Secretary.
Implementation Imperatives: Government of Assam and recommendation of the Board of
Director.
Performance Monitoring Indicators: Not to appear in the Balance Sheet for 2010-11 without
recommended change.
b.1.4) Classification of Expenditure as Capital, Revenue Or Deferred Revenue

Expenditure
Action Plan: Issuance of guidelines with specific criteria for classifying expenditures as capital,
revenue, deferred revenue expenditure depending on the purpose and the effect of such
expenditure such as increase in life of the existing asset.
Impact Assessment: Full compliance with Accounting Standards.
Implementation Responsibility: Proposed Accounting Application Committee.
Implementation Imperatives: Prompt and regulation implementation reports from the field
units based on format to be developed by the Accounting Application Committee.
Performance Monitoring Indicators: Monthly reports from Accounting Application Committee
to CGM.
b.1.5) Constitution of Audit Committee:

Action Plan: Constitute the Audit Committee in accordance with Section 292 A of the
Companies Act 1956.
Impact Assessment: Legal compliance; prevention of fraud and manipulation; better
coordination with the Statutory Auditor and CAG.
Implementation Responsibility: Board of Directors / Company Secretary.
Implementation Imperatives: Government of Assam through the Board Chairman and
Company Secretary to take the lead as compliance with the Companies Act falls under his
purview.
Performance Monitoring Indicators: Company Secretary to put up the proposal, defining the
scope of work among others, in consultation with Director of Finance. Board issuance of the
corresponding order to constitute the Committee.
b.1.6) Creation of the Accounting Application Committee

Action Plan: Constitute the Accounting Application Committee in each company with at most 3
Account Executives as members and to be headed by CGM.
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Impact Assessment: Control of corporate accounting and proper application of accounting

rules and standards.
Implementation Responsibility: Director of Finance or Chief General Manager.
Implementation Imperatives: Commitment and participation of all primary accounting units
by raising problem encountered and proposing solutions. The adequacy of supporting staff for
the Committee must also be ensured.
Performance Monitoring Indicators: Formation of the Committee
b.1.7) Internal Control System

Action Plan: Outsourcing of the work to prepare an Internal Control System for accounting
that is designed for the protection of assets and the completeness and accuracy of all
accounting records. In particular, the system should ensure:
o That the company operates according to National Laws and Standards;
o Greater staff commitment to the proper performance of the finance and accounting
functions;
o A balanced focus on both short term and long-Term objectives;
o Compatibility with the actual situation of the company;
o Consistency in all companies over time;
o Adaptive financial and accounting control systems;
o The evolution of cost effective control.
Budget: Rs 1 Million or US$ 22 Thousand.
Impact Assessment: Improved efficiency and internal control; timely and comprehensive
accounting reports.
Implementation Responsibility: Chief General Manager / Accounting Application Committee.
Implementation Imperatives: Clear definition of the scope of work starting with a complete
description of the current deficiencies to be addressed by the system.
Performance Monitoring Indicators: Appointment of external expert and development of the
system.
b.1.8) Maintenance of Subsidiary Books:

Action Plan: Maintenance of required subsidiary books.
Impact Assessment: Compliance with accounting requirements.
Implementation Responsibility: Corporate Accounting Office / Accounting Application
Committee.
Implementation Imperatives: Appointment of staff to maintain the books and
computerisation.
Performance Monitoring Indicators: Maintenance of subsidiary books as confirmed by Internal
Audit.
b.1.9) Important Recommendation of AERC:

Action Plan: Compliance.
Budget: Variable depending on the work to be performed.
Impact Assessment: AERC determination of the utilities revenue requirement and approved
tariffs based on complete and reliable operating and financial accounts.
Implementation Responsibility: Accounting Application Committee.
Implementation Imperatives: Acceptability of AERC.
Performance Monitoring Indicators: Quarterly Review of Progress.
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b.1.10) Audit Observation by Internal Audit and CAG:

Action Plan: Compliance.
Budget: Variable depending on the work to be performed.
Impact Assessment: Compliance.
Implementation Responsibility: Audit Committee.
Implementation Imperatives: Acceptability by Internal Audit and CAG.
Performance Monitoring Indicators: Quarterly Review of Progress.
b.1.11) Statement on Overdue Payment and Provision of Interest on the bills of

Micro, Small and Medium Enterprises
Action Plan: Status to be shown in the notes to accounts.
Budget: On financial outlay.
Implementation Responsibility: Company Secretary / CGM.
Implementation Imperatives: Action by Company Secretary/CGM.
Performance Monitoring Indicators: This must appear in the Annual Accounts for the year
2010-11.
b.1.12) Cost Audit:

Action Plan: Appointment of Cost Auditor by each of the three companies. The budget also
includes cost of installation of Cost Accounting System.
Budget: Rs 0.5Million or US$ 11 thousand for recurring salary and one time outlay for the
installation of a cost accounting.
Impact Assessment: Compliance with the Companies Act.
Implementation Responsibility: Company Secretary / Audit Committee.
Implementation Imperatives: Timely short-listing of candidates and approval by the Board of
Directors and preparation of Audit Books.
Performance Monitoring Indicators: Appointment and approval by the Board of Directors:
b.1.13) Statement of Non Adherence / Part Adherence of Accounting Polices:

Action Plan: Develop Standard Statement format.
Impact Assessment: Legal compliance and alignment with Best Practice.
Implementation Responsibility: Chief General Manager / Audit Committee / Accounting
Application Committee.
Implementation Imperatives: True and Fair disclosure of company accounts.
Performance Monitoring Indicators: Company secretary to interact with Chief General
Manager and Audit Committee.
b.2) Medium-term Actions

b.2.1) Organisation of Finance and Accounting Department:
Action Plan:
o Revision of Service Rules for Accounting Executives and staff including qualification
criteria and performance based promotion system;
o Proper balance of Executive Level and supporting staff complement. Approximately
100 new employees at staff level to be recruited in each company
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Budget: Annual recurring expenditure of approximately Rs. 7.2 Million or US 160 Thousand.
Impact Assessment: Timely and complete performance of critical accounting functions and
processes.
Implementation Responsibility: Director Finance / HRD with CGM Accounts.
Implementation Imperatives: Support of service unions.
Performance Monitoring Indicators: Revised service rules and better-balanced executive and
staff complement.
b.2.2) Capability of Accounting System to Generate Timely and Reliable Reports:

Action Plan:
o Computerisation of Accounting System with on-line network:
o Review all Accounting Heads, preparation of Accounts Hand Book, Manuals and
Standard Formats.
Budget: Rs 10 Million or U 22 Thousand.
Impact Assessment: Enhanced capability to generate timely, complete and reliable reports.
Implementation Responsibility: intly by Account Application Committee, Company Secretary
and Corporate Account Office.
Implementation Imperatives:
o Staff training on Computerised Accounting.
o Adoption of Annual Accounts as per the rerement of the Law.
Performance Monitoring Indicators: Reduction in lifications in the Statutory Audit Report.
Corporate Account Office to submit progress to CGM every month.
b.2.3) Compliance with, Schedule VI of Companies Act 1956 and ith Accounting
Standards:
Action Plan: Board to direct the Accounting Application Committee to be responsible for
compliance.
Implementation Responsibility: Creation of the Accounting Application Committee.
Performance Monitoring Indicators: Compliance as certified by Auditors:
b.2.4) Fixed Assets Register/Assets not in use or abandoned:

Action Plan: Creation of Fixed Asset Register by external appraisal experts and chartered
accountants.
Budget: Rs. 10 Million or U 22 Thousand.
Impact Assessment: Fair and true picture of companies assets and compliance, compliance
with AERC reuirements.
Implementation Responsibility: Chief General Manager (Technical) with the Assistance of
Accounting Application Committee.
Implementation Imperatives:
o Commitment of field Engineer and Engineering Staff.
o Provision of logistic for the Consultants site visit for Physical Verification.
o Preparation by companies engineers as As-built plans, system maps.
Performance Monitoring Indicators: ork update reports up to completion.
MERCADOS EMI - NDPL
b.2.5) Capital Work in Progress:

Action Plan: Capitalisation of completed works that are still classified as CWIP.
Impact Assessment: True and fair picture of the companys assets.
Implementation Responsibility: Chief General Manager (Technical) with the Assistance of
Accounting Application Committee.
Implementation Imperatives: Commitment of field Engineer and Engineering Staff.
Performance Monitoring Indicators: Monthly Progress reports and completion of the work.
b.2.6) Accounting for Stores and Inventory:

Action Plan: Update the Stores Manual. Complete Computerisation with capability for on-line
networking.
Impact Assessment: Proper management of stores and inventory, true and fair picture of the
inventory that is a crucial input to procurement decisions; prevention of theft and pilferage.
Implementation Responsibility: Chief General Manager (Stores), Accounting Application
Committee.
Implementation Imperatives: Correct physical count and adoption of inventory management
system.
Performance Monitoring Indicators: Monthly inventory report to Director (Technical) and
Director (Finance).
b.2.7) Internal Audit:

Strengthen the teams with adequate staff at APDCL. Internal Audit team should report to the
Managing Directors of the companies only.
Impact Assessment: Strengthen internal control.
Implementation Responsibility: Director Finance / CGM / Audit Committee.
Implementation Imperatives: Overcoming expected resistance to removal of interchange-
ability clause.
Performance Monitoring Indicators: Internal audit performed.
b.2.8) Reconciliation of Deficiencies in Computerised Accounting and Billing:

Action Plan: Hiring of a regular "IT Consultant" until the companies staff are able to perform
the job well. Consultant may come from the company hired to update the consumer ledgers.
Budget: Consultancy service fee.
Impact Assessment: Reconciliation of accounting and billing.
Implementation Responsibility: Director Commercial (APDCL).
Implementation Imperatives: Reconciled and updated consumer accounts.
b.2.9) Reconciliation of Consumer Ledger at APDCL:

Specific Action Recommended: Outsource the reconciliation to local IT consultants in the
Divisions.
Impact Assessment: Reliable consumer database.
Implementation Responsibility: Director Commercial (APDCL).
Implementation Imperatives: Complete consumer files and designation of at least 2 staff to
work with the IT consultant.
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MERCADOS EMI - NDPL
Performance Monitoring Indicators: Updated consumer ledgers.
b.2.10) Custody of Accounting Records:

Action Plan: Organise a proper Accounting Record Room at the Corporate Offices of the three
Companies that will have custody of accounting records as required by law:
o Section 209 of Companies Act prescribes 8 years.
o Income Tax provides for 6 years, but requires 10 years records in case of raids /
investigations.
o Assets to be recorded in Register until they are disposed of:
o Personal records of employees for the purpose of pensionable jobs-33 years.
o GPF / PF-till superannuation.
o Hydro project (drawings and contracts)-double the life of the project.
Impact Assessment: Compliance with legal requirements.
Implementation Responsibility: Accounting Application Committee.
Implementation Imperatives: Funding for setting up the record room with the required
Equipment.
Performance Monitoring Indicators: Functioning record room.
b.3) Long term Actions

b.3.1) Convergence with IFRS
Action Plan: Outsource to a Competent Chartered Accountant Firm.
Budget: To be determined.
Impact Assessment: Convergence and compliance with Government of India requirement.
Implementation Responsibility: Chief General Manager.
Implementation Imperatives: Mandatory participation of Accounts Executive in the work of
consultants.
Performance Monitoring Indicators: Detailed Discussion meeting of Accounting Executives
should be held to the assist CGM to be organised by AAC.
1.4. FINANCIAL MANAGEMENT

1.4.1. AS IS ANALYSIS
a) Organizational Structure
a.1) Relationship with ASEB
As pointed out in the statutory auditors report on LADCL and CAEDCL for 2008-09, the then separate
distribution utilities continued to hold fixed bank deposits in the name of ASEB. Up to 15th June 2009,
ASEB held the Power Trading license and procured power from APGCL and other suppliers which it
then sold to APDCL.
To date, APDCL is only partially autonomous with regards to financial management. The important
finance function like capital budgeting and the management of the funds for projects that are
supported by external grants, concessional loans and related schemes are still carried out under the
supervision of ASEB through its project monitoring unit. Proposal for the loan/grant are coursed
through ASEB to ADB and/ other Government Departments. Funds for these projects are released to
ASEB and are then allotted to the utilities. The utilities are required to submit the Technical
completion certificates of projects to ASEB.
APDCL has to send ASEB a requisition where the fund was released by the government or other
financial institution to ASEB directly against any capital investment proposal, for the release of funds
to pay off its financial obligations. Recently ASEB advertised for and recruited about 50 Account
officers and assigned a number of the new recruits to APGCL as the latters employees. ASEB controls
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the transfer and promotion of the employees of the unbundled entities. APGCL has full autonomy over
its operating plans and capital investments that are funded from internally generated funds.
a.2) Management Structure and Staffing

Two Distribution companies UAEDCL and CAEDCL were merged into LAEDCL vide State notification
no.41/2006 /199 dated 13 May 2009, Department of Power effective from the 1st of April, 2009. A
new certificate of incorporation was subsequently issued under the name APDCL with effect from 23rd
Oct, 2009. As a consequence of these mergers, the Finance Departments of the three entities were
also merged into a single Finance Department.
A Chief General Manager (CGM) leads the Finance and Accounting Department. The department
covers corporate finance, preparation of final account, budgets, development of various MIS
requirements, internal and statutory audit, preparation of payroll and pension, GPF record keeping
and the preparation of finance and accounting reports required by the regulator and other stake
holders.
Figure 17 APDCLs Organizational chart
Finance and accounting officials hold multiple positions due to the shortage of qualified personnel.
This leads to delays in decision-making and dilutes the focus from their core responsibilities.
The Deputy General Manager (DGM) for Establishment and Audit is directly responsible for Audit and
Establishment issues. Internal audit should directly reports to the Managing Director (MD). The total
strength of the Internal Audit team is 12 (2 Senior Managers (SM) , 3 Assistant Managers (AM) ,2
Account Officers (AO) ,3 Dy. Accounts Officers 1 Senior Assistant Accountant, 1 Junior Assistant
Accountant . The team caters to the internal audit requirements of 167 Sub divisions.
In the absence of a DGM, Corporate Finance and Compilation directly report to the CGM.
APDCLs license area is divided among Zones, Circles, Divisions, Sub Divisions and Industrial Revenue
Collection Areas (IRCA). Division is the lowest accounting unit of the APDCL. Sub divisions and/or
IRCA issue the monthly energy bills to the consumers. There are 3 Zones, 14 Circles, 75 Divisions,
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156 subdivisions and Industrial Revenue IRCAs. With this wide coverage and very little automation of
accounting and other financial management functions; delays in the compilation, evaluation and
monitoring of critical finance and accounting activities become inevitable.
a.3) Delegation, Control and Coordination

APDCL operates under a centralized cash flow mechanism. Due to perennial shortage of funds, the
CGM for finance priorities the payment of the invoices from AEGCL and APGCL. Payments are not
made against invoice but are instead based on requisitions from the other two utilities for their
operational expenses.
No expenditure audit has been undertaken since the inception of the company.
Financial statements for financial year 2009-10 are pending for compilation and finalization due to the
Re bundling schemes of three LAEDCL, UAEDCL, CAEDCL into one DisCo.
The CGM regularly receives the following reports/information:
Daily revenue Sheet on a monthly basis;
Monthly Trial balance from the Division in Excel form but no compilation is done at the head
office;
Statement of the daily fund available and payments to be made.
All the above information is received manually, which does not facilitate their compilation and analysis
that could alert responsible officials to possible aberrations in the flow and utilization of funds.
a.4) Management Information System

Except for billing which is 98 % computerized, operations continue to be largely manual The billing
software is user centric which allows modification of billing data (this may also include unauthorized
modification as password protection system in this decentralised software is not much robust and
there is no process for auditing the trail) by the user and is not integrated with the other components
of the Financial management and accounting system. It cannot even generate data for the ageing of
receivables.
The compilation of financial accounts uses simple Excel software. A computerization plan for the
department was reportedly submitted to the Board for approval. Details of the plan were not provided
for this study.
b) Financial Management Functions

b.1) Treasury Management System
b.1.1) Working Capital Management System
Current assets consist of operating revenues and receivables from customers while current liabilities
are mostly payables to APGCL. No provisional billing is done if meter is not read during the billing
cycle; unbilled consumption is billed in the following billing cycle. Over all billing efficiency of the
APDCL is about 60% of the total energy inputs. Collection efficiency is about 95% of the total billed
amount.
Computerized billing is done with the use of a billing Software installed at sub divisions/IRCA. As
previously discussed, the software is user centric and can be altered by the user. Some
subdivisions/ICRA also prepares bills manually due to lack of infrastructure support and computer
savvy staff.
Cash collected at the Sub division/IRCA is deposited in the Sub Division Deposit account daily. The
bank has a standing instruction to transfer the same to the revenue deposit account of the Zone and
then to Head Office in the multiples of the 000 daily. As per standing instruction the utilitys bank
transfers the fund from the sub division revenue deposits account to zone deposit account and then
to head office revenue deposit account. Every month, the head office reconciles of the cash deposited
by the sub divisions and the cash transferred by bank. In case of deficiency on the part of the bank, it
is directed to credit the corresponding interest for the amount of deficiency during the relevant
period.
The Drawing and Disbursement officer (DDO) of the unit and the Sub divisional engineer close the
cash collection sheet daily and send them to head office where they are reconciled monthly. The
Internal Audit report on the Dhing Electricity Sub Division from April07 to March09 found that the
unit staff keeps cash collection and not deposited in the bank account for a long period.
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The limited automation of accounts delays the compilation and flow of information on operational
problems such as the failure to submit to the head office the daily collection deposit reports. No
monthly balance sheet is prepared. Another Internal Audit report found observed that the Cashier
appropriates cash illegally.
APDCL is always short of funds principally because of its poor billing efficiency and lately, increased
power costs arising from the price increases. APDCL arranged a financing facility with SBI, New
Guwahati Branch to address its liquidity problem.
The key operating and financial results of APDCL as of 31st March 29 are as follows:
Total power Sale during - was Rs. 1286.21 Crores out of which Rs.62 Crores was
outstanding on 31st march 29,
Collection efficiency was about 96.11 Days of the billed amount,
Receivable outstanding was about 116 days,
Net working capital of Rs. 33.7 Crores,
Current ratio at 1.38.
b.1.2) Financial Risk Management

hicles are covered with third party insurance. According to the CGM, the distribution network and
equipment are no longer insurable because they are fully depreciated and are past their economic
lives. There is a Cash transit insurance to cover possible loss in transit.
The utilitys employees, networks and third party contractors are not insured. As a result, the cost of
compensation for injuries and loss of lives in the line of work of employees and outsiders were paid in
full from company funds. Such payments amounted to Rs.381 lakhs during 28- and Rs.77.
lakhs during 29-
The new power purchase contracts would require escrow deposits from APDCL. The recent increases
in gas prices indicate the need to hedge against rising power costs to mitigate its adverse impact on
the utilitys funds and on the end-consumers but there are no plans to do so.
Fake currency detector devices are installed in some major sub divisions only.
b.1.3) Fund Management

APDCL has an overdraft facility for Rs. 3 Crores with the SBI, New Guwahati Branch. The facility is
secured by short-term deposit receipts at an annual interest of 9.7. It is for the use of the Head
Office and 3 ones mainly to pay power purchase bills. Total interest paid by APDCL for the use of this
facility amounted to Rs.29 Crores during F 29-
APDCL had issued public bonds with face value of about Rs. 16.9 Crores face value as of 31st March
The bonds are due for redemption in -
Loans from the Government of Assam were placed at Rs 371.99 Crores as of 31st March 29. No
payments were made against the amortiations and interest due after 31st march 28. Interest on
loans is charged to profit and loss account and shown as interest accrued on GOA loan in the balance
sheet.
APDCL also secured a loan from ADB through The loan amount in the books was Rs 12.33
Crores as of 31st March, 29. The loan has not been accrued for repayment and the status of its
repayment schedule is unclear.
b.1. Trade payable

Processing of Power Purchase Bill
The Chief General Manager for Commercial executes power purchase agreements. The contracts are
forwarded to the Chief General Manager for Finance who evaluates their financial impact on the
utility. Monthly power purchase bills are submitted to the CGM Commercial for processing and
payment. CGM Commercial verifies and approves the bill and forwards the same to CGM Finance who
approves the invoice and forwards it to corporate finance for the release of fund to the Generation
Company. However as confirmed by APGCL, the invoice is not paid in full. APDCLs payment only
covers the amount required to pay the operating cost of the generation company. Payments do not
cover the return on equity and interest on GOA loans that APGCL have to pay.
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Total Power purchase cost of APDCL during 2009-10 was Rs.667.11 Crores. Rs 76.59 remained
payable to APGCL as of 31st March, 2010. The recent hike in gas prices caused a corresponding
increase in power bills and a liquidity crisis because the regulator has yet to approve APDCLs request
for a true up of its tariff.
Processing of Wheeling Invoice

CGM Commercial receives the bill for wheeling charges monthly from AEGCL. The bill is then endorsed
to CGM Finance for verification, approval and payment to AEGCL. Like APGCL, AEGCL is also not paid
the full invoice amount. Instead, the payment only covers the amount required for AEGCLs operating
expenses. The payment does not include the return on equity, amortization and interest on GOA
loans that AEGCL has to pay.
Total Wheeling Charges during 2008-09 was Rs.335.43 Crores with payable to AEGCL of Rs.57.89
Crores as of 31st March 2009.
Payment for materials

Vendors submit their Invoices to the concerned Divisions, Circle or Zone. The authorized Drawing and
Disbursement Officer along with concerned Senior Managers/Deputy General Managers verify the
invoice and release the pass and pay order. The invoice is then forwarded to the CGM Distribution
for approval and recommendation to CGM finance for the release of fund after ensuring from the
Senior Budget Manager that the invoiced amount is within budget, The Debit advice authorizing the
release of funds from the subsidiary bank is subsequently sent to the concerned Zone/Circle/Division.
Sub Divisions/Circle/Zone also maintain printed cash account for petty expenses. The account is
replenished once the utilization statement is submitted and approved by the Head Office. Debit advice
is sent to Division/Circle/Zone by courier.
Employees submit their reimbursement claims to the Human Resources and Industrial Relation
Department for verification which then forwards them to fianc for further payment/ Reimbursement.
b.2) Budgetary Control System

All Sub-Divisions, Circles and Zones prepare their budgets requests for Staff cost, Operational and
maintenance expenses, and General administration expenses on the basis of their last year expenses
with some adjustment for projected variations in the subsequent budget year. The Head office then
compiles all requests; compares the same with available funds, i.e. the regulators approved revenue
requirement for the utility and submits the compiled budget to the board for approval. The approved
budgets are subject to the approval by the regulator of the utilitys annual revenue requirement. If
the amount approved by the regulator is less than the budgeted expenses, the budget is again
revised and aligned with the revenue requirement approved by the regulator.
Figure 18 APDCLs budget control system
Gaps identified:
Budgetary control is limited to the one-time annual approval of budget requests.
There are no other institutionalized control measures or monitoring process of funds
and expenditures during the budget year. Officials tend to exhaust the available
budget even if the expense could be avoided.
Variance analysis between the current and prior years budget and/or current year
budget vs. expenses is not undertaken.
Control measures adopted for controlling budget expenses with respected to
sanctioned budget are totally manual. No software is used for this and total manual
intervention results in oversight and actual expenses exceed budget expenses.
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b.3) Inventory and Store Management System

APDCL maintains 4 Stores: one each in Kalipara, Ulubari, Tejpur and Silchar. Kalipara stores and
issue material categorized as A and B items. It issues A and B materials to other stores as per indent
received from other stores or as per allocation chart received from DGM(Central Stores & works
Department) and divisions of Lower Assam ones. The other stores issue material of A& B category to
division of Upper Assam one and Central Assam ones as per Indent received from divisions. Ulubari
stores and issues category C & D materials.
Some weaknesses in the inventory management system were identified, such as:
Materials are stored in an open space (Examples Distribution Transformers, Metering
Units, V cross, Cables, etc.) without adeuate security.
Stores maintain inventories for as long as 3 to 10 years of materials and epment that
are infruently used such as 33 V underground cable, V cross arms & Metering units
33 V & V
A & B items are routed through lipara, Central stores even if they are procured for
other stores due to single delivery of material by suppliers and limited access of heavy
vehicles to other stores. Single point delivery results to more paper work at the central
stores and lead-time between actual consumption of materials.
b.3.1) Receipt of materials

Goods received at stores along with Delivery Challan, Copy of Purchase order and Test reports of the
concerned technical officer are issued the Purchase Order & Dispatch clearance. Stores in charge then
generate the Goods Receipt Sheet (GRS) and sent to the DGM of Central Stores Division for approval
and forwarding to finance for payments.
b.3.2) Issuance of materials

Division fills up Indent for materials reuired and sends the same to the circle DGM for Distribution
for approval. The latter then approves and sends the indent to the zone CGM for distribution who
approves the indent and sends it to the DGM for (Central Stores Department). The DGM for Central
Stores Departments approves the indent and sends it to stores for release of material. Stores issue
the gate pass and 6 copies of Challan. Of the 6 Challan 3 copies are sent to the Division along with
materials one to DGM for CSD and 2 are kept at the store. Out of the 3 challan sent to the Division,
one copy is furnished to the DGM for CSD for reconciliation and forwarding to account for the
accounting of materials. Inter unit transfers done according to the allocation chart are sent along with
purchase orders to the stores. Challan copy sent in same manner by other store location against the
issuance of materials to their divisions.
b.4) Procurement Management

b.4.1) Power Purchase Management
Commercial office negotiates power supply contracts for 5 years. The regulator fixes contract price.
Contract Price includes fixed and variable components which are the capacity charges and energy
charges respectively. The capacity charge is a two-part tariff where the suppliers earn an incentive
when the plant operates beyond the agreed load factor. The CGM for Finance vets the agreement and
ensures the availability of funds for payment when the invoice is received. Spot trade accounts for
- of the Total power rerement. APDCL earned Rs.252.51 Crores from unscheduled
interchange during 2008-09.
b.4.2) Materials purchases

Operation and Maintenance Material are categorized as materials A, B & C. Material C can be
purchased by the sub divisions. The bill is then sent to the CGM for Distribution who approves and
forwards the same to the finance department. Finance approves and disburses the fund to the
subdivision for payment to the vendors. The CGM for Distribution can procure A & B materials in a
centralized manner after considering the material reuirements of various field offices. Purchase order
is issued consistent with for the guidelines of the Tender Purchase Committee. Field offices send the
MERCADOS EMI - NDPL
requisition for A & B materials to Circles. Once approved, the materials are sent to the store for direct
issuance.
b.5) Tax Management System

DGM for Finance oversees the Taxation section along with the new pension scheme. The statutory
auditors work out the utilitys tax liability from the income tax and Fringe benefits Tax which the
utility pays. The company does not have service tax registration and has been served a notice on this
omission.

a) Review of National Best Practises
Benchmarking is a process that develops performance indices for specific entities and compares them
to industry norms for the purpose of measuring entity performance, and identifying areas needing
improvement. This benchmarking process can reveal potential areas where a particular DISCOMs
performance is lacking and point to directions for further detailed examination to identify any
underlying contributing causes or mitigating factors to the performance gap. Having a clear
assessment of its strengths and weaknesses, a DISCOM can formulate a better corporate strategy to
improve its competitive position in the market place.
In these contexts, the usefulness of performance benchmarks is evident as a means to attract capital,
to direct operating expenditures, and to recognize both strengths and weaknesses in an effort for
continuous improvement in utility services. The lack of performance benchmarks or any reliable
database of performance indicators in India is a major handicap for distribution utilities. At present,
they have no region-based standard by which to target improvement efforts, monitor progress, or to
make comparisons within the region. Throughout the region, DISCOM managers recognize that they
lack this important management tool.
The principal beneficiaries of the benchmarking activity include:
Distribution company (DISCOM) managers: The benchmarks and database will provide specific
performance standards for key function areas, and the method to apply them to any given DISCOM.
The benchmarks are intended to assist managers to compare their operations with peer DISCOMs, set
performance targets, evaluate costs, allocate resources, develop capital expenditure requirements,
and monitor performance.
Government, MLB funding agencies, and donor organizations: The benchmarks and database
will facilitate evaluation of DISCOM performance, identification of investment needs, and development
of improvement initiatives by external organizations concerned with power distribution sector reform
and development. Moreover, as externally funded assistance becomes more focused on output, the
benchmarks will provide a consistent set of performance metrics for the region.
Investors and lending institutions: The benchmarks are expected to provide critical data that will
facilitate privatization and corporatization programs as government officials and investors are able to
compare targeted DISCOMs with industry norms.
Consumers and DISCOM Employees: The benchmarks will provide a means for improvements in
distribution services to consumers and in the safety of working conditions for DISCOM employees.
a.1) NDPL as a National benchmark

In the current context of National Power Distribution reforms, wherein the Ambitious project of the
Ministry of Power in India RAPDRP (Restructured Accelerated Power Distribution Reform
Programme) amounting to Rs. 50,000 Cr. has been heralded in order to bring down the AT&C Loss
to the level of 15% and to rehabilitate the existing network of various utilities across India. NDPL
one of the power distribution companies in Delhi has already achieved this feat. It is the first success
story of Power Sector Reforms in India under a Public Private Partnership framework and has been
the pioneer Utility in India for incurring significant capital investment that have been used in network
refurbishment and implementation of technology systems. NDPL is credited with record reduction of
AT&C losses from a mammoth 53% in 2002 to 14.47% in just a span of eight years. The Govt. of
India and many other international forums have even recognized this.
NDPL has used the Tata Business Excellence Model (TBEM) based on the International Malcolm
Balrige Award for transforming the monopolistic approach of a utility to a customer centric and
MERCADOS EMI - NDPL
process driven approach. It is a PCMM Level 2 and ISO 27001:18001Certified Organization apart from
being the first Indian Utility getting ESCO certified.
Some of the key recognitions received by Nationally and Internationally are as follows:
Edison Electric Institute (2008), Edison Award for Implementation of GIS.
Asian Power Awards 2010, 2009, 2008 & 2007 for Power Utility of the Year
National Award for Meritorious Performance 2004-05, 2005-06, 2007-08 & 2008-09
BSC Hall of Fame Award (2008) for using BSC as a tool for Strategy execution and
inculcating performance driven culture for achieving breakthrough results.
Infraline Energy Award(2007) for Excellence in Power Distribution
Apart from these accolades, NDPL is also handholding other Power Distribution Utilities under RAPDRP
as IT consultants to Haryana, Chhattisgarh and Chandigarh and SCADA DMS Consultants to UP, MP,
Punjab and Jammu Kashmir. Based on these achievements, we have taken NDPL as a National
Benchmark.
a.2) Financial Management at NDPL

Subsequent to the unbundling of the power generation, transmission and distribution in Delhi, the
three Distribution utilities have been privatized out of five. At the time of unbundling, the assets and
Liabilities of the erstwhile Delhi Vidyut Board were acquired by the Government of Delhi. At the time
of privatization, all assets pertaining to their licensed area were transferred to books of NDPL and all
successor entities and liabilities were transferred to separate Holding company which is 100% owned
by Delhi Govt.
Privatization was done based on the licensee model for 25 years, wherein the Distribution Utility
would get a fixed return on the investment made and also the incentives in case of overachievement
of AT&C Loss Reduction. Financial gains from AT&C Loss reduction would be shared with the
consumers in form of tariff
a.3) Organizational Autonomy

Being a joint venture between Tata Power and Delhi Govt., the management control lies with Tata
Power with DERC as regulatory Authority. It has directors on board from Tata Power as well as Delhi
Govt. An investment decision can be taken by the company based on Delegation of Power, and if
required by the approval from respective board of Directors. The consolidated approval is taken from
DERC at the time of ARR Filing. Most of consumers and employee related decisions can be taken by
NDPL board itself and need not go to any separate government board.
a.4) Working Capital Management

Cash collection- Cash and cheques are collected at cash counters located across NDPL. Also, the NDPL
consumers can deposit the payments through various avenues like Cash counters, e payment, ATPM
(Automated Teller Payment Machine), Mobile Collection Vans. Based on a mutual understanding, its
the bank responsibility to collect and deposit the cash as well as cheque to NDPLs collection account.
Thereafter the bank sends a reconciliation statement. While the cash is in movement, it is insured
through cash transit insurance. For this facility the bank charges a nominal fee (1 Rupee per
Thousand). In this mechanism, following are the control measures-
1. Scratch coupons are used between cashier and the pickup van to avoid any impersonate
attempts
2. Reconciliation between cash and cheque collected at counters with respect to cash and cheque
deposited to collection account.
3. Reconciliation between cash and cheque deposited in collection account with respect to consumer
accounts
4. Daily cheque bounce report generated to update consumer account
At NDPL and other utilities in Delhi, any payment made by consumers in excess of INR 4000 has to
be mandatorily made through Cheque or Card. This is as per the regulatory guidelines and also
reduces the risk of cash handling.
Debtors Management Debtors can be consumers as well as employees. For any default on behalf of
consumers, there is process for disconnection. There is a continuous monitoring of the bill payment
by consumer by the Revenue Recovery Group based on the exception report is thrown out of the
MERCADOS EMI - NDPL
billing system. For any defaulter of payment, a red coloured bill is issued to consumer to build a
psychological pressure on him her. If the consumer does not pay his bill within 1 billing cycle of the
bill generation, a disconnection notice is issued and disconnection is done after 2 billing cycles if
consumer still does not pay. Meanwhile alerts are regularly sent to consumers through SMS, email
and tele-calling. ne more mechanism for recovery of dues
For the Debts related to employees, telephone bills, loans etc., if the employee does not pay within
the due time limits there is a provision to directly deduct the amount from their salaries.
Bank Management System a dedicated group who ensures that the balance in collection account
remains at minimum level and available fund gets transferred to verdraft Bank account reviews
NDPL collection accounts on daily basis. Daily MIS report is generated which depicts the daily
collection and payment, status of collection account and overdraft account.
a.5) Fund Management

In case of NDPL, at the time of inception the government of Delhi had decided to transfer the liability
to the holding company. There was a transition support that was offered to NDPL amounting to Rs.
Cr. Later on this was converted to equity.
a.) Inventory Management System
NDPL has a process by which it regularly analyses the Non-moving slow moving items. There is policy
through which the Stores department decides to take appropriate action whether to scrap, auction, or
use the non-moving slow moving item. Physical verification of stores is also done on periodic basis to
avoid shortage of material
In order to streamline the inventory management process, NDPL has implemented SAPs Material
Management Module for proper storage and accounting. Prior to implementation of SAP following
issues were being faced by NDPL - Material storage locations are spread across working area of 510
sq. kms. fficers at NDPL were not able to check the stock positions at different storage locations.
Lack of information for Material availability was serious problems during breakdowns. They were
using 2000 stock items in different stores as per the electricity distribution business. They need to
maintain safety stocks for most of the items. Stock positions were not checked during preparation of
future schemes (Projects) for which material requirement planning was difficult to calculate. There
was a serious need to integrate all stores with different processes, optimize inventory position, and
reduce carrying cost, improve material requirement planning, maintenance of safety stock, reorder
level. Introduction of ERP in form of SAP has resulted in integrated supply chain management and
optimization of inventory holding and working capital.
Some other innovative mechanisms followed at NDPL are:
Door delivery of material process to deliver the material at site within hours from
requisition
Just in Time (JIT) Facility with vendors
Web sharing of stock status with vendors for JIT items
a.7) Procurement Management

NDPL has a systematic process of centralized procurement of items at a uniform rate. A rate contract
(RC) is done with the vendor. This removes the chances of procurement of materials at different
rates. However, the delivery of materials can be decentralized, based on requirement.
a.) Financial Risk Management

Insurance NDPL has developed and deployed a structured process to identify, analyse and mitigate
the risk involved with various aspects of power generation and distribution. There is a separate
department headed by Deputy General Manager to address risk that directly reports to C (Chief
Financial fficer). It also maintains a risk register that is updated on periodic basis. Insurance is
taken based on the probability of occurrence, intensity of the event and the financial viability of the
insurance. There are various policies to mitigate the financial and operational risks, like:
IAR Policy For grids and establishment
Public Liability Policy To address the third party damage due to NDPL
Money Insurance Policy For cash in transit
MERCADOS EMI - NDPL
Group Personal Accident To cover hospitalization expenditure

Motor Insurance Policy Comprehensive policy taken for NDPL owned vehicles
Regarding fluctuation in power purchase cost, NDPL has done long-term power procurement for 70%
of its power purchase.
Budget Management
Benchmark Process At NDPL, Variance Analysis is done on a periodic basis by functional heads led
by finance.
Any purchase proposal is moved only after checking the budget allocated
Budget is prepared for a financial year in the month of March before the FY starts
As already mentioned above, NDPL has implemented ERP in form of SAP, one of whose modules is CO
Module (Control) that takes care of the budgetary aspect and its variance. Other features of this
module is:
Cost Control: Cost Centre groups have provided a structured approach to the organization
from a cost accounting perspective. Grouping individual Cost Centre has made it possible to
achieve a flexible and detailed analysis of Cost Centre as well as for the group as a whole.
Budget Controlling: Regular monitoring and reporting of actual expenses vis--vis budget supported
by online control.All in all, some of the key savings achieved due to SAP Implementation are-
S Approx. Cost in Rs
Factors
No saved per year
1 Due to time saved through Online indent system for store 2,250,000.00
2 Avoidance of conveyance 900,000.00
3 Due to faster capitalization process reconciliation 1,000,000.00
4 Reduction in document processing time at store from 12 to 4 min 500,000.00
5 Rationalization of work force in A/c payable 1,000,000.00
6 Asset creation process improvement and time saved 800,000.00
7 Speedier bank reconciliation and rationalization of work force 400,000.00
8 Improvement in zonal maintenance process 10,000,000.00
Support activities taken over by Sap Competency Centre from

9 10,600,160.00
external consultants
Total Saving 27,450,160.00
1.4.3. GAPS IDENTIFICATION AND ANALYSIS

Financial Management Systems:
The main gaps in APDCLs financial management system are as follows:
1) Organizational autonomy:
a) Lack of autonomy from ASEB with respect to projects funded from external sources. ASEB
continues to undertake the capital budgeting and management of these external funds.
2) Working Capital Management:
a) Delayed banking of GEC 1 Circle (APDCL) collection to SBI, Revenue collection-by-
collection pick up account agent. Instead the collections are first deposited in the banks own
account before they are transferred to APDCLs revenue account. This practice in GCE 1 Circle
could be symptomatic of a prevailing practice in other Circles/collection points.
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b) Unclear cheques reported in the bank reconciliation system like at Ulubari sub division
Bank reconciliation statement shows 2009-10 amounting to Rs. 28 thousand approx. cheques
remains cleared.
c) Lack of insurance for cash in transit could results in the cash loss to the APDCL.
d) Receivables include receivables from the employees/Boards establishments of the utility.
As per Monthly Revenue Statement for December2010 of Paltan Bazar, ICRA and Ulubari sub
division receivable amounting to Rs. 7.43 lakhs.
e) Billing software does not provide the ageing of the receivables which could facilitate the
immediate disconnection of non-paying customers after the grace period by the commercial
section. Losses from the cost of power delivered and transmission cost incurred for delinquent
customers could have been avoided with prompt disconnection.
3) Fund Management:
a) Non repayment of GOA loan by the utility since 2008; as confirmed by CGM (F) AERC does
not allow the finance charges on GOA loans in the tariff allowed to APDCL.
b) Status of the ADB loans is also not cleared about repayment.
c) Public bond due for redemption planed to be redeemed out of the revenue generated from
the sale of power which would results shortfall of working capital during 2010-11 & 2011-
2012
4) Inventory Management:
a) Identification of the shortage of inventory during physical verification for with respect to
financial books.
b) Stores keep obsolete/non serviceable inventories;
c) Slow moving item lying in the stores to the tune of 8-10 years.
5) Procurement Management:
a) Decentralised procurement of materials by the fields as per their requirement of the C & D
materials could results in piled up the same materials at fields;
b) Price variance for the same materials procured. Standard price mechanism not adopted
while procuring of materials. Zonal chief engineer are procuring material A & B as per the
requisition send by the fields under centralised manner. As confirmed for CGM (M) office the
prices could differ since no standard price mechanism observed.
6) Financial Risk Management:
a) Absence of insurance cover of the APDCL employees and network for damage and loss
could results in operational risk to the utility.
b) Absence of insurance of cash in transit insurance could end up with cash loss.
c) Absence of hedging against fuel price hike as evidence in recent past results in extra
outflow of revenue and float time is more on to recover the increase cost from consumers
through tariff.
7) Budget Management:
a) Actual Expenses are more than the budget amount approved and no variance between
budget expenses and actual expenses incurred during the financial year.
1.4.4. RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION PLAN

a) Organisational autonomy
The current practice where ASEB continues to control the planning, disbursement and management of
funds provided by external sources, constrained the financial independence of the utilities, slowed the
development of their financial management capabilities and impeded their financial planning. These
funds, which are mostly intended to fund the capital investment requirement of the utilities, are in the
form of grants and loans from the State and National Governments and from the ADB. While ASEB
controls their disbursement, the servicing of the principal amortization and interest charges are
funded from the utilities earnings. As a result, capital investment projects are implemented without
due consideration of their impact on the utilities over-all profitability, in terms of cash-inflows and
inflows. The current set-up also hampers the formulation of long term financial plans by the utilities
of which in-flows and out-flows for/from capital investments and financing charges are the major
components.
MERCADOS EMI - NDPL
This gap and its adverse effect on the utility can be addressed by devolving to the utilities the
management and disbursement of the funds while ASEB continues to monitor their implementation.
An alternative solution; one that conforms with the current Loan/Grant Agreements that names ASEB
as the executing agency would be for ASEB to continue to receive the funds subject to automatic
disbursement to the utilities upon the latters submission of detailed project implementation plans.
Under this arrangement, the utilities would draw up their own capital investment plans (not to be
confused with project proposals submitted to financiers) and directly pay project contractors from
their own accounts instead of the current practice where ASEB prepares the capital investment plans
and disburse payments to project contractors from ASEB accounts. The utilities will also be required
to submit project and funds status reports to ASEB.
To operationalize this proposal, a Notification from GOA will be required. The Notification should: a)
clarify the status of the residual functions conferred on ASEB in the Unbundling Notification over the
management and disbursement of these funds; and, b) mandate the financial autonomy of the
utilities from ASEB as regards the planning for, management and disbursement of these funds. The
notification should be secured without delay, i.e. in 6 months to enable the utilities to draw up their
financial plans for the following financial year immediately.
1.4. INANCIAL RISK MANAGEMENT

The absence of a structured risk management policy can impede the utilities operational and financial
sustainability in long run. Some of the risks that the utilities face are from a) the lack of insurance
cover b) employees including those exposed to high risk of work-related injuries such as the linemen;
c) financial hedging for power purchase cost. Good risk management underpins a successful business
and is an integral part of the management processes. The objective of utilities is to accomplish
corporate goals, so it becomes necessary for the Company to ensure its success by identifying key
risks in a timely manner and by implementing appropriate strategies to maximise business
opportunities, manage uncertainties and minimize potential hazards.
This gap can be addressed by adopting a structured financial risk management system. As a first
step, the utilities should designate an official to be responsible for risk management. This official
should identify various risks that can be encountered during the daily operations of the utilities and
capture these in a risk register. The significance of each risk is determined as high, medium or low
depending on whether existing control measures can mitigate them adequately. The risks are then
ranked according to their significance and likelihood of occurrence. The residual exposure is
determined by assessing the effectiveness of their corresponding mitigation/control measures.
Thereafter, a Risk Intensity and Probability matrix should be developed and the necessary
actions to mitigate the risk are taken after conducting a cost benefit analysis.
a) Risk Classification
Risk classification can be done through risk score, which is product of significance and likelihood of
the risk. Risk scoring is arrived on the basis of criteria, which are to be determined by the
organisation. A sample criterion is given in the table below.
Table 13 nancial Ris Classification Pple
Significance
(1) Medium (2) Hig (3)
Liiood
Low (1) Low (1) Low (2) Medium (3)
Medium (2) Low (2) Medium (4) High (6)
High (3) Medium (3) High (6) High (9)
b) Fund Management System

The objective of the power reforms act is to make the generation, transmission and distribution
utilities financially viable. Major problems identified include: a) APDCL not paying the power and
MERCADOS EMI - NDPL
transmission bills in full that in the absence of an escrow arrangement adversely affects the liquidity
of the other two utilities; b) non-repayment of GOA loans since 2008.
The gaps in the fund management system and its adverse effect on the utilities finances can be
addressed by the full devolution to the utilities of the management of their funds and the removal of
the centralised cash management system. Once this is done, the utilities should prepare their
respective annual operational plan (AOP) and project their long-term and short-term fund
requirement inclusive of funds requirements for capital investments. Monthly fund requirement can be
estimated as per projected/estimated cash in-flow and out-flow. Funds can be raised in an optimal
manner after doing cost benefit analysis of each proposal. Payment against power bills raised by
APGCL and transmission charges bill raised by AEGCL to APDCL shall be secured by an escrow
arrangement against their own funds/assets; not ASEBs.
c) Budget Management system

As per current practice, utilities prepared annual budget based on the feedback received from units
and last year actual figures. The approved annual budget is revised in accordance with their approved
Annual Revenue Requirement (ARR). The utilities do not conduct variance analysis during the
financial year and a pre-audit of proposed expenses prior to their approval.
A systematic budgeting process backed by an automated Management Information System is
required to address the vulnerability of the budget process. Such a system should enable the CGM for
Finance to regularly monitor the detailed expenditures per budget line vis--vis their approved
allocation, the percentage of deviation and reason thereof. Utilities can also implement enterprise
resource planning (ERP), one of whose modules (CO module) can take care of budgetary and cost
controls.
d) Procurement Management System

As per current practice, various purchase committees are formed to execute procurement agreements
with vendors for material required, as per Delegation of power (DOP) sanctioned and as per category
of the material. A and B materials are procured by the Technical purchase committee (TPC) while C
and D materials are procured by the Zone Purchase Committee (ZPC). There is no rate contract
mechanism for the procurement process which results in price variance of the same materials
procured by different ZPCs. The process also results in overstocking of materials at different zones.
The gaps and its adverse effect can be addressed by implementing a rate contract mechanism so all
purchase agreements executed by various purchase committees and offices can be executed at rate
contracts and where it occurs, stating the reason for any deviation. This mechanism results in uniform
prices for the same materials procured. In addition, the centralised procurement of Category A and B
materials with direct field deliveries will generate bulk purchase savings. A standard format should be
designed for, ideally, an automated MIS that includes details of the major items such as their prices,
procured by the various TPCs and ZPCs.
e) Working Capital Management:

APDCL does not have a specific working management policy. In the absence of AOP at APDCL, the
major gaps identified at APDCL are; a) deficiencies in computerised accounting and billing; b) delayed
collection and deposit of the cash and cheques to collection account; c) un-cleared cheque in the bank
reconciliation statement; and, d) significant amount of unpaid employee debts and advances.
A proper working capital management system is an urgent requirement at APDCL. This shall include
policies for the prompt recovery of consumer debts and those of its officials and employees; for the
prompt deposit of daily collections in its account and the issuance of corresponding bank collection
and deposit statement; and the daily submission of Daily collection statement by the subdivisions
/ICRA. The statements from the subdivisions/ICRA should include are conciliation of the consumer
account posting with cash/cheque collected to ensure correct posting to consumer account.
f) Inventory management system

The current inventory management practice of APDCL is not proper and commensurate to the size of
the organisation. Stocks of stores and spares ranging from about 8 to 10 years in inventory;
discovery of shortages during physical verification; and, accumulation of obsolete and non serviceable
stores and spares reflect a poor inventory management policy.
Considering the value lost from inventory mismanagement, it is proposed that APDCL adopts the
Enterprise resource management (ERP) solution for inventory management. The advantages of the
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ERP includes: a) tracking of the physical movement of stores and spares; b) timely and correctly
delivery of stocks and spares to the sites; c) reconciliation of stores and stock issued to different
locations item wise and, value wise; d) identification of the rate of utilisation of materials to guide
procurement in order to achieve minimal carrying cost and out-of-stock costs; and, e) optimal use of
working capital.
The do-ability and success of the proposed action plans will depend on individual and /or concerted
effort by those involved to deliver /perform certain tasks as outlined in table below.
AF MERCADOS EMI - NDPL
1.4.6. IMPLEMENTATION IMPERATIVES AND ENABLERS
Employees of 3
Issue Management of ASEB Regulatory commission Government of Assam
Utilities
Organisation Change of working GOA to issue notification on full

autonomy culture from reliance on autonomy of the utilities
ASEB to full autonomy including the management,
with its corresponding planning and disbursement of
responsibilities externally provided funds. Such
notification could include a
transition mechanism leaving the
project monitoring function with
ASEB until such time that the
loan covenants and/ or grant
requirements are amended
Risk Management Designation of an official Regulator to allow the

system responsible for Risk recovery of insurance
Management function premium through tariff
Insurance cover
and a system of risk
for APDCL Regulator to allow
identification and
employees and automatic fuel surcharge
analysis
networks. for the additional power
purchase cost.
Hedging for
power
procurement
Cash in transit
insurance
Fund Management
system
Payment of GOA Preparation of restructuring Recovery of financing charge GOA approval and notification on
loan. plan through the tariff the loan restructuring.
Adjustment to separation
Dismantling of ASEB to adopt hands-off
Centralized Cash policy on the utilities
Management System financial operations and
policies
Employees of 3
Issue Management of ASEB Regulatory commission Government of Assam
Utilities
Budget Management Training of officials and

System. staff on the application
of the ERP
Variance
analysis of the
Actual vis--vis
Budget approved
Working Capital Leadership and advocacy

Management of the Board of Directors
and top management
Cash and cheque
pick up facility
other than GEC-
1
Payment of
electricity bill
through cheques
only
Inventory Training of work force on Regulator to allow the

Management system the application of SAP expenditure
Procurement Leadership and advocacy

Management System of Boards of Directors
and top management
Adoption of Rate
Contract Staff Capacity building
mechanism on inventory
management
Bulk purchase
1.4.7. PERFORMANCE MONITORING INDICATORS/CRITERIA

Various parameters used by the utilities for measurement of performance are listed as below. APDCL should start monitoring these parameters for a sustainable
improvement in the processes.
Area Performance Measure Units of Measurement Formula (If Any)
Organisation autonomy Financial Autonomy of APDCL - -
Risk Management system Number of new risks identified in various Number -

categories.
Adoption of structured risk
identification and mitigation
process
Cost of medical insurance per employee.
US Dollars -
Adoption of insurance cover
for network and employees
Insurance premium as a percentage of
Percentage (Total Insurance Premium / Cost of
network assets.
Assets)*100
Percentage of assets covered under

(No of assets insured / Total no of
insurance. Percentage
assets)*100
Fund Management system Average cost of restructured loan. US Dollars -
Restructuring of GOA loan Penalties incurred. US Dollars -
Debt service coverage ratio. Number Net Operating Income / Total Debt Service
Interest paid/Incurred vis--vis interest US Dollars -

allowed by regulators.
Budget Management System. Actual expense as a percentage of Percentage (Actual Expense incurred / Budgeted
budgeted expense. Expense)*100
Adoption of CO module (ERP)
for budget and cost control.
Variance analysis between
Budget and actual expenses.
Working Capital Management Working Capital Ratio Value Current Assets/Current Liabilities
Average days receivables Days Average Accounts Receivable / (Sales x

360 days)
-
Float time between cash collected and Days
credit allowed by bank.
Cash handling charges -

US Dollars
Inventory Management system Inventory Turnover Ratio Value Cost of goods sold/Average inventory
Adoption of ERP module for -
inventory management system
Number of stock out Value
-
Number of slow moving item Value
-
Number of non-moving item Value
-
Aging of inventory Days
Procurement Management Average cycle time for procurement Days -

System/Capital Expenditure
Management
Average time of ordering/release of Days -
purchase order (PO)
PADCI (Project Average Duration

Days Sum of time required to close each
Completion Index)
scheme / total number of schemes
EADCI (Engineering Average Duration Days Sum of time required to release each
Completion Index) scheme / total number of schemes
Average time taken to capitalise from Sum of time required to capitalise each
Days
date of completion of work scheme / total number of scheme
1.4.8. SUMMARY TABLE COVERING THE ABOVE POINTS
Implementation Implementation
No Priority Typology Action Description Budget (mUSD) Expected Result
time Responsibility
1 Short term Institutional Organisational Autonomy: No financial outlay Better financial 1 to 6 months GOA
planning and
ASEB to provide autonomy to
management by the
APDCL in the financial management
utility and enhanced
of externally provided funds for
financial
capital expenses such as those in
independence
the form of grants; concessional
loans from National and State
Agencies and regular financing
facilities from secured from financial
institutions.
2 Medium Functional Risk Management System: Insurance premium Savings in utility out 6 months to 1 HR. Chief Engineer
term for policy. of pocket costs for year Distribution and CGM
Designation of Official in charge of
workers related (F)
Risk Management and Adoption of Based on NDPLs
injury and
Risk Management Policy. Risk policy experience,
compensation. For
to include:
Approx. 20USD per example, APDCL
a) Group Insurance Cover for year for 2000 USD spent 103680 USD
Employees and Network cover per employee; as compensation in
(Including Grids). 2008-09 and
Approx. 360 154300 USD in
b) Cash transit insurance to be USD/year for0.2 2009-10.
taken in sub division/ICRA with Million USD Cover
time Responsibility
daily cash collections beyond a For Grid Station Employees security

specified amount and based on through insurance
Bank charges 1 USD
geographical condition of the cover results in
per 1000 USD for
sub division/ICRA such as their employees
Bank taking
distance to the nearest bank. satisfaction and
responsibility of the
timely settlement of
cash
claims.
3 Short term Functional Fund Management System: ASEB in its capacity as

project manager for
a) Dismantling of the centralised No financial outlay Financial autonomy Within 6 months
the projects funded by
cash management system
No financial outlay Avoidance of Within 6 months these loans; Boards of
b) Restructuring of GOA loans and additional financing Directors of the
other loans that are in arrears charges and better utilities; and Finance
financial Directors
Clarify repayment schedule of
management. For
ADB loans
example, APDCL
requires
approximately Re.
0.72 paisa /unit pay
its accumulated
debts obligation and
Re 0.01 paisa/unit
for future interest
obligation.
((Assumption: figure
estimated on the
basis of data for F.Y
2008-09 and
repayment is
assumed to be in 6
years
4 Medium Functional Budget Management System: Approximately More accurate 6 months to 1 DGM Finance
term 12000 USD/ years budgets and control year
Adoption of systematic budgeting for the salary of a of variances.
process backed up by an automated new hire budget
officer whose main
time Responsibility
Management Information System.! responsibility would

be the management
of the budget.
ERP cost
approximately
US$20 Million
5(1) Medium Functional Working Capital Management: Better management CGM Finance
term of working capital;
Adoption of Working capital No financial outlay 6 months to 1
enhanced liquidity
management policy year
5(2) Short term Functional Immediate implementation of the No financial outlay Savings in overdraft At most 6 months CGM Finance
following measures: bank facility interest
for one day on the
a) Cash/cheque payments of
daily collection. As
consumers that are picked up from
per MRR, collection
the Guwahati circle 1 (GEC-1) by
of GEC-1 for the F.Y
Axis bank should be directly
2009-10 is 68.218
deposited to APDCLs SBI collection
Million USD and the
account to shorten the float time
SBI OD facility is
between the collection and deposit
availed at 9.75%
of funds in APDCL account to at
per year, so annual
most one day.
saving would work
GEC-1 accounts for 23.22 % of to the tune of 18000
total APDC collections in 1 year. USD (Approx.).
Short term Functional b) Cheques and cash collected at No financial outlay Opportunity cost At most 6 months SMR-Sub division
Subdivision /ICRA should be from foregone
deposited on the same day to the interest on deposit.
collection account.
Control measures:
Daily remittance sheet (DRS) to
be sent by ICRA/Sub divisions to
Corporate office stating cash and
cheque collected and cash and
time Responsibility
cheque deposited into bank

account.
Daily reconciliation between cash
and cheques collected with cash
and cheques deposited into bank
account.
Monthly reconciliation statement
between cash and cheque
collected with amount credited
to consumers account to be
submitted to corporate account.
Monthly details of bounce
cheques and debit of consumer
account.
Short term Functional c) Adoption of policy that would Administrative cost Handling of cheques At most 6 months CGM (F)
require the payment by cheques of only is easy as compare
bills exceeding a minimum amount, to cash. Promoting
say INR 10,000. cheque collection
could mitigate risk
for cash loss.
APDCL also incurred
a cash loss of about
1 lac during cash
transit to bank few
years back. (As
confirmed by CGM
(F & A)). Cash loss
could be avoided by
taking the cash
transit insurance. As
confirmed, bank
pick-up facility for
GEC-1 is about to be
suspended and it
amount to 23.22%
time Responsibility
of total collection.
Short term Functional d) MRR of all sub divisions needs to NIL Amount outstanding 6 months CGM (F) and CGM (D)
be added to derive the amount that of 3.568 Million USD
could be recovered from employees as per GEC-1
and other ASEB monthly revenue
undertakings/premises. statement (MRR) for
the month ended
Management policy to recover the
December 2010 The
outstanding amount from employee
cumulative effect of
and other establishment.
total amount
Control measure: outstanding may be
very high seeing the
Monthly report to be generated number of Circles to
about the outstanding dues and be sub division/ICRA
sent to HR for the recovery of is 15.
dues.
Short term Functional Billing software to provide ageing Software As per MRR 6 months Commercial
analysis of the receivable and modification charges Statement of 2009- Department
Immediate disconnection of the to be quoted by 10 total outstanding
connection after expiry of the grace software provider. 75.774 Million USD .
period. with days
receivables at 104
days. As per
monthly billing cycle
and disconnection
process on non-
payment, receivable
to the tune of 60
days are acceptable.
So receivables for
44 days could be
avoided on prompt
disconnection and
Opportunity cost of
receivables
amounting to
51.584 Million USD
time Responsibility
could be saved.
Medium Technical Billing software to include Software Increased billing 6 months to 1 CGM (Comm.), CGM
term temporary connection billings. Development efficiency and year (F).
charges to be paid management of
to external experts. receivables. If billing
efficiency of the
utility increase by
1% the expected
increase in stabilised
revenue of utility is
up to the tune of
0.278 Million USD
per year.
6 Long term Functional Inventory Management System App 1 to 1.5 Million Elimination of 2 to 3 years CGM (D), DGM (CSD)
USD for the Cost of inventory losses including training and CGM (F)
Introduction of computerised
hiring external through
inventory management system as
expert to develop obsolescence, fraud
part of ERP
computerised and waste.
Inventory Inventory losses
Management system estimated at 3.714
and conduct staff Million USD for
training. Financial year 2009.
(Provision for stock
Software and
as per balance for
hardware cost
the period ended
included in the ERP
31st march 2009)
cost estimate
In NDPLs Case:
Savings due to on-
line indenting for
stores- 44000 USD
per year
37% reduction in
overall inventory
after
implementation of
time Responsibility
ERP solution within

3 years. The value
of inventory came
down from 21.5
mUSD to 13.6
mUSD. The
opportunity cost of
7.924 mUSD could
be saved on account
of ERP
implementation.
42% reduction in
slow moving
inventory. After
implementation of
ERP solution for
inventory
management NDPL
could able to bring
down within 3 years.
The value of slow
moving inventory
from 9.218 mUSD to
4.798 mUSD. The
opportunity cost of
3.9 mUSD could be
saved on account of
ERP implementation.
7 Medium Functional Procurement Management System: No financial outlay Savings estimated 6 months to 1 CGM (D), DGM (CSD)
term at 5-10 % of total year to identify and CGM (F)
a) Centralised purchasing at head
purchase from bulk and issue
office of Category A and B materials
purchase discounts. invitation to
but directly delivered to stores in
Elimination of prospective
the requisitioning zones/ fields and
inventory losses suppliers to join
issued as per requirements.
through bidding
obsolescence, fraud
and waste.
AF MERCADS EM - NDPL
time Responsibility
ventory losses
estimated at. 3.714
mUSD for F 2009..
(Provision for stock
as per balance for
the period ended
31st march 2009)
8 Medium Functional b) Aggregated purchasing by No financial outlay cluded in above 6 months to 1 CGM (M), CGM
neighbouring zones of categories C estimate year to identify ones), CGM (CSD),
and D materials to avoid materials that CGM (F)
overstocking of materials that are could be subject
used in common by these zones. to aggregated
purchasi to
identify and issue
invitations to
prospective
suppliers and to
conduct bidding
9 Medium Technical c) ntroduction of Rate Contract No financial outlay Savings from Medium CGM (M) CGM (D)
mechanism for the procurement of purchases at rate CGM (F)
inventory by field zones. contracted rather
than at prices higher
than standard is
estimated at 5-10%
of total purchase
cost.
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution -114
2. 10 YEAR BUSINESS PLAN

s part of the study is geared towards an assessment of the utilities internal capacity to undertake
sound financial planning particularly capital investment planning. Capital budgeting is of paramount
importance to capital intensive industries with large sunk costs such as APGCL, AEGCL and APDCL. It
is at the core of their business plans; and determines their efficiency, profitability and long-term
survival.
assessment of the utilities capacity to undertake financial planning was to have been through a
diagnostic approach, specifically through a case study. s would have involved first, asking the
utilities to draw up the Financial Model of their current and projected business plans based on a
mplate that was provided (Chapter I, sections 1.3, 2.3, and 3.3 of Inception Report); second,
verifying the link between their Capital Investment Plans (hereinafter referred to as their CAPE
plans) in particular, in terms of the assumed financial impact of the C plans on their profitability
over a 10 year period; third, by evaluating the financial criteria used in the prioritiration of the
projects included in the C plans; and finally, identifying the possible gaps and weaknesses in
both the capital investment plan and over-all financial plans. Since the Financial Models could not be
accomplished in time for this report; an alternative approach was taken, i.e.; through an analysis of
the utilities available business plans and CAPE plans. he CAPE plans analysed were those
submitted to the regulator by all the utilities in their tariff petitions and Detailed Project Reports
(DPRs) of projects prepared for externally funded projects of APDCL.
2.1. GAP IDENTIFICATION AND ANALYSIS

extensive review of the utilities capital investment and Business Plans that were submitted to the
alternative approach turned out to be inadequate for the purpose of this Analysis. First, the link
between the business plans and CAPE plans could not be verified from the available documents;
second, the DPRs were sponsor specific, i.e. projects were grouped by sponsor and evaluated
separately from other projects with different sponsors; third, the CAPE plans submitted to the
regulator did not contain the results of the financial evaluation that may have been undertaken that
formed the basis for their inclusion in the plans. APDCLs current multi-year investment plan is briefly
described below. project team eventually found, from discussions with various utility staff and
PMU and from the documents that were made available that: a) capital investment planning continues
to reside with ASEB because capital investment projects are still largely funded by external schemes
where funds are funnelled through ASEB; b) there is no evidence that the capital investment project
proposals submitted through ASEB underwent economic evaluation where technical project ideas or
alternatives were evaluated prior to final selection of the project proposed to be funded; c) both
technical and economic evaluation capacities for capital investment planning are largely absent from
all 3 utilities; d) the utilities Business Plans were prepared by external experts and few , if any,
among the utilities staff were familiar with them.
2.2. BENCHMARKING PROCESSES AND STANDARDS

Benchmarking for this activity is guided by the project objective to Strengthen and develop the
capacity of the utilities in:
Capital investment planning in respect of the evaluation of capital investment projects s
cost/benefit analysis, payback period, present value, etc.;
Preparation of detailed business plan for each company consisting of capital investment plans
and future profitability statement.
It is clear from the foregoing that the project objectives and scope of activities to be undertaken
themselves already describe the benchmarking process and standards which is capacity building. he
required expertise are imperatives in all well run undertakings that involve substantial investment on
fixed assets, not just in electric power utilities. Furthermore, the techniques applied for economic
evaluation and preparation of financial plans are textbook approaches that are fairly well known and
applied. Hence, describing the best practices of national and international comparators will be
extraneous to and will not add value to this project activity.
2.3. APDCL MULTI-YEAR INVESTMENT PLAN

APDCLs submitted a multi-year capital investment plan as part of its tariff petition to the regulator.
s too details allocates project costs by proposed type and source of financing; provides the
technical justifications for their prioritization; are covered by DPRs but does not show the cumulative
impact of all these projects, as a package, on the utilitys over-all profitability during the plan period.
The table of annex VIII shows APDCLs capital investment plan for FY 2012-2013 which was
extracted from its submission to the regulator.
2.4. ACTION PLANS

The scale of the gaps identified convinced the Consultant to adjust the approach to this activity. It
was initially planned that the utilities will draft their capital investment and business plans on their
own based on a template to be provided by the Consultant. This approach was subsequently deemed
to be ineffective relative to the scale of the skills deficiency and prompted a change in strategy to a
ladderized approach that includes:
a) Briefings on basic technical project evaluation for generation, distribution and transmission;
b) Briefings and workshops on the economic evaluation of capital investment projects and on
business planning; and
c) In coordination with the PMU, the formation of ad-hoc teams consisting of engineers and
accountants/finance staff in each utility that were trained on the basic aspects of capital
investment and business planning;
d) Learning by doing to develop the staffs confidence on their ability to undertake these functions
by encouraging them, with close assistance and supervision to actually work on their computers
and as a team (the project team made available its own laptop for those without);
e) Initially focussing capacity building on the evaluation of Capital Investment plans due to the
substantial effect of these investments on the utilities revenue and thereafter, on the Business
Plans;
The preparation of the 10 year Business Plans, particularly of the 10 year financial plans is
constrained by a) the lack of experience of the utilities staff with business plan preparation and; b)
the absence of corresponding 10 year capital investment plans ; a critical input to the business plan.
To overcome these constraints, the project team decided to approach the preparation of the plan: a)
as a capacity building exercise by practical assistance, i.e.; provision of guidance and constant
consultation during the experts stay in the project office and by electronic communication when the
expert was not in Assam; and b) where it was not possible to come up with a 10 year capital
investment plan; by allowing the preparation of a Business Plan for a shorter time period. So far, only
AEGCL has indicated that it will prepare a Business Plan for 5 years only; APGCL and APDCL are
drafting 10 year plans. This exercise was not expected to result in Business Plans that the utilities can
take to the bank. Instead, they should be viewed simply as outputs of capacity building activities
based on readily available data and convenient assumptions for the purpose of learning. The utilities
will require a more extensive training on Business Planning to produce credible Business Plans, which
is being recommended in the TNA part of this report. The exercise has nonetheless shown the staff
that it is possible to undertake this function by them and made them receptive to this possibility
provided that they are equipped with the technical skills to undertake it.
The briefing on first item above was held in Guwahati on February 24, 2001. The ad-hoc group was
formed shortly after. It was at their request that a complimentary briefing on the technical evaluation
of transmission and generation projects was held in Guwahati in April 2011.
2.4.1. CAPACITY BUILDING ON ECONOMIC EVALUATION OF CAPITAL

INVESTMENT AND PREPARATION 10 YEAR BUSINESS PLANS
a) Technical Evaluation
Technical evaluation precedes the economic evaluation of all capital investment projects. It involves
the gathering of pertinent data such as load flow; load modelling; load forecasting; performance
assessment and/or audit of plant and systems vis--vis relevance standards such as availability,
outage probability, reliability, safety, security; the generation of project ideas and the technical
evaluation of the project ideas in terms of their ability to respond/solve the problems to be addressed
or the technical objectives that are sought to be attained. This flow is illustrated in the Distribution
Planning Chart below. A briefing on the technical evaluation of distribution and transmission projects
was provided by the expert to the utilities staff in the February and May workshops to provide
context to the capacity building exercise on the economic evaluation of capital investment projects. In
brief, it was intended to impress on the utilities that the economic evaluation is to be applied on
alternative project ideas to aid in the selection of the final project proposal and not on the final
project proposals already as now practiced by ASEB and the utilities. As previously observed, the
capacity for technical evaluation among the utilities staff (and even in ASEB) is very much lacking.
Capacity building will involve lengthy rigorous training. To be effective such training should be
designed as an interactive activity where the core training materials will consist of the utilities own
data (from plants and systems) and the laboratory exercise will focus on the development of the
utilities capital investment plans. Such training could run anywhere from 3 to 6 months and require
that the training be conducted outside the trainees offices to enable them to focus and not be
distracted from the daily demands of their jobs.
DU CAPITAL INVESTMENT PLANNING PROCEDURE

Demand, Sales, customer, economic,
1 Data Gathering and Updating demographic, fault, reliability, ERC DSL
Segregation Data (network & load)
2 Forecasting Demand, Sales and Customers
Identify and quantify Capacity, Safety,

3
Performance Assessment of
Power Quality, Reliability and System Loss
Distribution System problems
Generate Project Ideas

4 Formulation of (Solutions to Problems)
Alternatives/Project Formulation
Short Circuit, Load Flow, Reliability and
5 Technical Evaluation System Loss Analysis
6 Economic Evaluation Least-Cost, NPV and B/C Analysis
CAPITAL BUDGETING
b) Economic Evaluation
The economic evaluation of capital investment projects of electric utilities, especially distribution and
transmission, must be aligned with the performance and service quality standards imposed by the
regulator. In general, projects that are for compliance with the minimum standards are evaluated
based on least cost while those that will allow the utility to exceed the minimum standards are
evaluated based on their relative NPVs, IRRs, cost/benefit; i.e. the alternative with the higher NPV ,
IRR or cost/benefit is selected. This selection criterion is illustrated in the diagram below.
The preliminary screening of Generation expansion projects on the other hand are usually evaluated
with a screening curve. This methodology allows the determination of the optimal capacity mix by
discounting the total Levelised cost during the operating life of the projects against their capacity
factor values and by dividing the annuity of their production costs by their annual generation. In the
event of projects with dissimilar lives, the equivalent annual annuity approach is used to evaluate the
projects. Non-generation expansion projects such as plant refurbishment, installation of system
hardware and software, investment on new buildings and maintenance vehicles are directly evaluated
using the least cost method. These approaches to economic evaluation was discussed and
demonstrated to the ad-hoc teams during the briefings and workshops in February and May. On the
application of the screening curve, the AEGCL team informed the group that based on existing policy,
only hydro and natural gas based projects were to be considered in the planning for generation
expansion.
2.4.2. RESULTS
The first briefing on technical and economic evaluation of capital investment plans and business plans
was held in Guwahati on February 2011 and a second briefing-cum-workshop was held in May 2011.
A backgrounder on the technical or engineering process on capital investment planning was provided
to demonstrate that economic evaluation involves the evaluation of alternatives, prior to the selection
of the final project proposal. Due to the unavailability of data from the utilities, the briefing made use
of extensive data from a Philippine distribution utility to demonstrate the detailed procedures involved
in the evaluation of capital investment projects and their effect on a utilitys finances. The participants
were, through the PMU, provided soft copies of the presentations and the Excel Worksheets with
embedded formulas immediately after the briefing. It was then agreed that the utilities would, on
their own and coupled with constant communications with the expert to resolve difficulties if
necessary, evaluate their capital investment plans and submit the results to the expert by the end of
April 2011. Inasmuch as there was no recortdocumentation of alternative project ideas that may
have been considered prior to the finalization of the utilities current Capital Investment Plans, it was
agreed that the staff would simply work on the current approved projects, i.e., for submission to
possible financiers, as a learning exercise on economic evaluation. A Workshop would then be held in
May 2011 in Guwahati to finalize the economic evaluation of the capital investment plans and to draft
the business plans. The formation of the ad-hoc teams was agreed with the PMU prior to the experts
departure from Guwahati in April.
Outputs were not submitted to the expert at the end of April, as agreed which served to push back
the agreed timetable. Except for AEGCL, the ad-hoc teams did not work on their assignments despite
the constant follow-up by the project team and had nothing to show by the time the expert returned
to Guwahati in May. Among the reasons cited was the lack of specific briefing on the technical
evaluation of capital investment projects for transmission (which does not explain the lack of results
for APDCL and the progress of the AEGCL team). In response to the request for a briefing on technical
evaluation, the expert provided a briefing on the technical evaluation of transmission projects with
the usual caution to the participants that she was not competent to engage in an in-depth discussion
on the technical aspects of the subject. Thus, instead of finalizing the capital investment and business
plans in May, the Workshops again focussed on capacity building on the economic evaluation of
capital investment plans and the preparation of business plans.
As a result of these delays, experts went back to Guwahati in July (11th July 2011 to 23rd July 2011),
November (13th November 2011 to 27th November 2011) and in February to assist the utilities in
finalizing their Business Plans.
a) Economic Evaluation of Capital Investment Plans

The briefiworkshop materials are attached as Annex VIII 1 to this Report.
Based on the results and the interaction between the expert and the ad-hoc teams, it appears that
the repeated Workshops succeed in building the capacity of the ad-hoc teams to undertake the
economic evaluation of capital investment projects. However, for this knowledge to be enhanced it
needs:
To be complemented with rigorous training on the technical evaluation of proposed capital
investment projects;
To be applied by involving the ad-hoc team of the utilities in the generation and evaluation of
project ideas and the selection of final project proposals through the formation of permanent
capital investment planning teams in each of the utilities ; and,
To be dispersed by requiring the members of the ad-hoc teams to conduct echo sessions for
other concerned staff in the respective utilities, particularly those who are expected to be
involved in capital investment planning.
The capacity building exercise also made the participants appreciate the importance of
clarifying the technical assumptions underlying their projects; e.g.; on the level of operating
and maintenance expenses; assumed benefits such as increased load or decreases in systems
loss; cost of capital, among others. In the case of APGCL where the economic evaluation
yielded mostly negative NPVs and IRRs that were below the cost of capital; it made the team
aware of the importance of cost reflective tariffs and the urgency of exploring alternative
approaches to ensure that the utilitys ROE that is built into its tariffs allow the utility to be self-
financing and sustainable in the long run. This complication faced the AEGCL team in drafting
its Business Plan.
2.5. RESULTS (DETAILS INCLUDED IN ANNEX VIII 2)

APDCLs draft is its 1st draft and was not subsequently revised because the Ad-Hoc team members
originally assigned to it were re-assigned and were not replaced. As a 1st draft, the document
predictably shows large gaps from the presentation up to the substantive parts, i.e. the identification
of objectives, strategies and action plans. The Financial and Organizational plans have not been
drafted. The Financial Plan was drawn up separately during the Financial Management Teams last
two trips to Guwahati in late December 2011 and in February 2012 only. While the single Ad-Hoc
team member who worked on it showed strong commitment and learned the process of formulating a
Financial Plan; the Plan itself was based on: a) a Capital Investment Plan drawn up by an APDCL
technical expert who was belatedly assigned to the team and one which has significant differences
from the Investment Plan previously submitted by the company to AERC for tariff purposes and b) on
operating assumptions only because the Business Plan itself was not complete. The companys
inability to draw up a comprehensive draft Business Plan was caused by the frequent changes in the
composition of its Ad-c team and inadequate number of staff assigned to it.
2.5.1. IMPLEMENTATION IMPERATIVES AND PERFORMANCE MONITORING INDICATORS

Building the internal capacity of the utilities for capital investment and financial planning will require
the following:
Formation of a technical team in each of the utilities that will be responsible for these tasks;
Sustained and in-depth capacity building on all aspects of capital investment and financial
planning such as forecasting; technical evaluation; and financial analysis;
Devolution of the management, planning and control of externally provided funds for capital
investment and grants, loans, among others from ASEB to the utility. This is essential
because skills are only acquired and harnessed by doing. To be consistent with the terms of
the current loan and grant agreements that designate ASEB as the executing agency, ASEB
can continue to monitor the utilisation of the funds and require the utilities to regularly submit
project update reports for this purpose.
The performance-monitoring indicator should ultimately be the completion of sound capital
investment and financial plans that are based on robust assumptions and rigorous technical and
economic evaluation. For the purpose of this project, the performance monitoring indicators will be
much less ambitious given the current capacity of the utilities and the dearth of technical data on
which to build the plans. Thus, the performance monitoring indicators for this project are: a) drafting
of the capital investment and financial plans according to the guidelines provided in the Workshop;
and b) Capital investment and financial plans that are consistent with the data sets and assumptions
on which they are based. Simply, the expected result from this intervention is learning and
knowledge to equip the utilities staff to draw up their plans in the future; not capital investment and
financial plans that the utilities can take to the bank.
3. FINAL FINANCIAL POLICY AND STRATEGY FOR THE

IMPROVEMENT OF SPPSS AND RRES
3.1. SPPSS/IBDFS
The objective of the RGVVY, the policy framework of the Single Point Power Supply Scheme (SPPSS)
and its successor, the Input Based Distribution Franchising Scheme (IBDFS) is the decentralised
management of power distribution by franchising. The appropriate benchmarking criteria given this
objective are: a) replicability, or the capacity to generate more or less the same results if the project
is repeated in other areas/by others; and b) sustainability, or the capacity to endure.
The comparators for this benchmarking exercise possess these characteristics; albeit, the first more
than the other. These are the: 1) United States (US) Electric Cooperative Program and 2) Bhiwandi
Electricity Distribution Franchisee Model or the Bhiwandi DF Model. The US program has endured for
nearly 100 years now and has been replicated, in terms of its ability to provide electricity to their
intended target beneficiaries in Latin America and in the Philippines. The success of the Bhiwandi DF
Model on the other hand has inspired the Maharashtra State Electricity Distribution Company
(MSEDCL) to implement the same scheme elsewhere in the State and other distribution utilities in
India.
1
a) US Electric Cooperative Program
a.1) Goal and Structure
The goal of the program was to electrify rural America. When the program was launched in 1935, less
than 750,000 of the 6.8 million farms across the United States had access to central station electric
1
Public Utilities Reports, Inc Electric Cooperatives: On the Threshold of a New Era, Vienna, Virginia 1996
service (CSES). Those that did paid a high fee for the service and at much higher rate than those paid
by the consumers in the urban areas. The CSES, which were investor-owned, had little interest in
serving rural consumers. It is because of the high costs involved and lower revenues to be earned.
Today, more than 30 million people in 46 states are served by almost 1,000 rural electric
cooperatives. Electric cooperatives operate more than half of the distribution lines in the US.
Consumer-members own the electric cooperative. It is a non-political and a non-for-profit business
entity. An individual or business within a cooperatives franchise area can become a member-owner
by joining the cooperative and buying electricity from it. The members are generally not required to
make direct financial investments apart from than their membership fee, which is returned when the
member leaves the cooperative. The Board of Directors is elected by the members and sets its basic
policies, goals and strategies. Each member has one vote. Professional managers are hired to run the
business. The business does not operate for profit and is thus exempt from income tax. Members
receive a patronage capital in proportion to their usage of electricity when the business earns a net
margin over expenses. Part of the earnings is set aside for educational programs including those
designed to build public awareness of the public service performed by electric cooperatives.
a.2) Institutional Support and Key Success Factors

The Rural Electrification Administration (REA) that was created on May 11, 1935 through Executive
Order 7037 provided institutional support. REA became the backbone of the cooperative movement in
the US. It was transformed into an independent lending agency with the passage of the Rural
Electrification Act of 1936.
The success of the electrification program owed much to the availability of funds for capital
investments and technical expertise that were provided by REA. Apart from providing capital, REA
focused on the delivery of technical expertise that the rural people needed to organise, build and
operate electricity systems. Specialised assistance in engineering (adapting and developing simplified
standard designs such as by eliminating cross-bars, increased pole span, application of mass
production techniques); accounting; and management support were provided. These created strong
systems that built strong cooperatives that were able to repay their loans to REA.
With the rising demand for capital investment funds, the rural electric systems established the
National Rural Utilities Cooperative Finance Corporation (CFC) in 1969. CFC is self-help, not-for-profit
cooperative financing institution that acted as a conduit between the cooperatives and the private
capital markets. Thereafter, REA required cooperatives to obtain supplemental financing from other
sources as a condition for getting a loan from it. Overtime, the government subsidy to rural
electrification was progressively reduced by successive legislations. In 1993, the interest on REAs
direct loan program for electric borrowers was tied to a published index of municipal rates that was
capped at seven per cent in some cases or at five per cent for those who could not afford to pay at
the higher cap. REA was eventually abolished in 1994, after almost 60 years in existence. The Rural
Utilities Service (RUS) assumed its responsibilities.
2
b) The Bhiwandi DF Model
b.1) Goals and Performance
Bhiwandi, a textile hub in Maharashtra was one of the worst performing circles under the MSEDCL.
Prior to the introduction of the IBDFS, its aggregate technical and commercial losses were around
50%-80%. While power sales grew by 42% from 2002-2007, revenue stagnated at around US$53.6
Million (Rs 240 Crore). The state government subsidy for power supply to the power looms increased.
To address these problems, MSEDCL bid out an IBDFS franchise which Torrent Power Limited (TPL), a
private entity, won. Significant improvements resulted from the time that the franchise was handed
over to TPL on December 2006 and by the end of financial year 2008-2009 as shown in the table
below.
Table 14 - Power Scenarios in Bhiwandi - Before and after Franchising
Handover to DF-Dec 2006 At the end of 2008-2009
AT & C Losses 58% 24%
2
IDFC, The Bhiwandi Electricity Distribution Franchisee Model: A resolute Step in distribution Reforms, Policy
Group quarterly, No. 4/June 2009
Transformer failure rate 7.5%
Status of consumer metering Poor with few accurate meters 95% meters accurate
Indicators for Quality of Supply
System Average Interruption

Fruency Index (SAIFI)
63 13.57
System Average Duration Index

23.56 3.55
(SAIDI)
Consumer Average Interruption

0. 0.26
Duration Index (CAIDI)
Source: IDFC, The Bhiwandi Electricity Distribution Franchisee Model: A Resolute Step in Distribution
Reforms, Policy Group Quarterly, No.4/June 2009
c) Structure of the DF Model

The franchise was selected by competitive bidding. In the absence of reliable information on AT C
losses, the bid parameter was the annual input rate for MSEDCL supplied power based on the
average revenue realisation of the base year. The base year was the financial year between 2001
2002 and 20052006 with the maximum average revenue realisation per unit of energy input in the
Circle. Financial bid parameters included a 30 minimum reduction on distribution losses and 33
improvement in collection efficiency by the end of the contract period. The franchise was awarded to
the bidder with the highest Present Value of the yearly input rates. MSEDCL had set a floor based on
the projected annual benchmarks for the input rate for the first seven years. The salient features of
the franchise contract are summarised in the following table.
Table 15 - Salient Features of the Bhiwandi DF Model
Contract Period 10 years, extendable

Power Supply
To be supplied by MSEDCL at specified input points to be paid by DF at
agreed input rate. DF allowed procuring power from others and above supply
from MSEDCL (but no guidelines on recovery of costs from consumers).
Wheeling charges to be paid to MSEDCL for such power
Capital Investment
MSEDCL committed about US2.68 Million (Rs. 12 Crore) per year for 5
years. DCF may undertake CAPE if ruired to reduce loss and improve
supply. MSEDCL takes over DCF invested asset at depreciated value at end
of contract period.
Arrears
and of pretakeover arrears from disconnected and current
consumers to be awarded to DCF as incentive
Employees
MSEDCL employees in franchise area given option to join DCF on deputation
for 3 years with minimum terms set on MSEDCLs employment terms and
conditions and fixed allowance based on State government. DCF pays
deputation cost and allows choosing employees and cancelling employment
with 1month notice to MSEDCL. Promotion remains with MSEDCL.DCF can
hire own employees but with no reemployment obligation for MSEDCL.
Subsidy
Credit against weekly power purchase bills to be provided by MSEDCL for
subsidied consumer categories.
Tariff Indexation
Annual input rate indexed to average tariff or average billing rate through a
tariff indexation ratio (TIR). TIR calculated as ratio of average prevailing
tariff applicable to all consumers and average tariff to all consumers in the
base year.
Rights of DF
DF given rights of use to existing distribution assets of licensee. Employees
of DF authorized under Electricity Act of 2003.
Others
Security deposit for new connections, electricity duty and tax on sale of
electricity collected from consumers to be remitted by DF to MSEDCL. DF to
comply with MERC directives, Standards of Performance and Electricity
Supply Code
Source: IDFC, The Bhiwandi Electricity Distribution Franchisee Model: A Resolute Step in Distribution Reforms, Policy Group
Quarterly No. 4/June 2009
c.1) Key Success Factors

The success of the Bhiwandi DF model was based on clear performance parameters and a resolute
drive by the franchisor for efficiency and customer satisfaction. In particular,
Resolving differences and agreeing on the baseline data or opening level data on distribution
losses and collection efficiency;
TPLs four pronged strategy for success: reduction in technical losses, reduction in commercial
losses; customer satisfaction and change management
o Investments in network strengthening and augmentation;
o Arresting revenue leakages from commercial losses through improved metering,
enhanced vigilance and regularization of illegal connections by minimizing processing
time and simplifying the requirements for new connections coupled with an active
communications campaign;
o Better quality of service; quick response to consumer complaints and dedicated
communications which included letters to consumers describing TPLs activities that
were sent with the bills; forming an advisory committee of prominent citizens in the
area; and participation in the social affairs of the community;
o Alignment and adaptation to different cultural orientation of TPL and MSEDCL
employees; and implementation of a performance reward mechanism.
c.2) Outstanding Weaknesses

A number of issues have to be resolved to ensure the long-term sustainability of the Bhiwandi
franchise. These include:
Stable power supply. MSEDCLs load shedding adversely affected service quality and TPLs
image in the community. While the latter is allowed to buy power from other sources, the lack
of guidelines for cost recovery through the tariffs is a disincentive;
Lack of minimum capital investment commitment requirement. This could lead to short term
solutions on TPLs part to achieve its targets such as by improvements in operational
efficiency and short-term investments.
Short contract duration relative to time required recovering capital investments. Although
extendable beyond the 10 years contract duration, the high risk of non-extension is a
disincentive to long term capital investments which in power utilities have economic lives of at
least 20years;
Compatibility of MIS Systems for better monitoring. The two parties initially had problems of
incompatibility, which was eventually resolved.
Dedicated project management team at the franchisee. The utilities are expected to manage
many franchise agreements. Contracting, coordinating and ensuring that performance are
aligned with contract terms, with commercial realities and regulatory demands require a
dedicated team with the capacity to undertake these tasks. MSEDCL saw the need for and
organised a Franchise Management Cell post Bhiwandi.
d) Common Key Success Factors of Comparators

The US Electric Cooperatives Program and the Bhiwandi DF Model exhibits common characteristics.
These are:
Structured Public and Private Partnership (PPP) with clear substantive and governance rights
and responsibilities of both parties;
Reduced political intervention in the business operations. The US Electric Cooperatives are not
political. Franchise bidding and award to a private entity of the Bhiwandi franchise reduced
the scope for political interference. Note that political patronage that seeped through and took
root in the Philippine Electric Cooperatives is often cited as a major cause of the poor
performance of many of them. Measures are now being studied to solve this problem;
Access to adequate finance for capital investment and operating expenses and to technical
expertise. These were provided in the US by REA, a government agency and by the Bhiwandi
franchisee itself.
Mitigation of Contractual and Regulatory Opportunism. The risk of failing to recover and earn
a reasonable return on investments due to short contract duration or arbitrary changes in
regulation is a major disincentive. As business owners, the members-owners of the US
cooperatives have all the incentives to run the business efficiently and to plow back the
profits to the business. The extension capability of the franchise contract in Bhiwandi provides
some assurance of recovery although this the incentive for long term capital investments can
be strengthened by the lengthening of the firm contract duration to at least 25 years, to
match the economic lives of distribution assets.
Community Participation. The electric cooperatives are intrinsically part of the Community by
their ownership. TPL reached out to the community by appointing prominent members of the
community as advisers and by its regular letters to the consumers.
3.1.2. GAP IDENTIFICATION AND ANALYSIS

Assams IBDFS Scheme does not appear to be sustainable. Not only does it lack the key success
factors of the Best Practice comparators; the provisions of the agreement are heavily stacked against
the franchisee with all of the benefits, if any, accruing to APDCL. Based on its most current version as
uploaded into its website and confirmed at the Consultants meeting; its fatal flaws are:
Instead of competitive bidding, the Bulk Supply Tariff is predetermined and the franchise is
awarded to the proponent selected by APDCL;
High financial risk and poor financial return to the franchisee arising from:
o Dubious baseline data .The calculation of the Net Energy supplied to the franchisee;
the setting of the BST and the projection of his prospective additional earnings when
he exceeds the pre-set AT & C targets assumes a Technical loss of 20% for LT
category and 5% on HT category. These assumptions are not supported by energy
audit and could result in a loss to the franchisee that must pay APDCL for the net
energy injected at the BST rate. The energy audit of the Shibsagar Borhat New ROO
in fact shows an average T & D loss of 38% from April 2009 to March 2010 and an
average AT & C loss of 38.75% (the audit is itself doubtful because there are months
when the AT & C losses are lower than the T & D loss). APDCL and its external
consultants are convinced that most of the losses correspond to Commercial losses.
o High Risk of Less than full-recovery of Working Capital. Working capital requirement is
assumed at 2.5x of the estimated monthly OPEX of Rs 62,406 or U$1,386. OPEX
covers staff and helper salaries, office rent and computer operator, travelling and
other expenses. All other expenses are covered by the Working Capital allowance that
only earns a monthly 13% interest instead of being reimbursed in full by APDCL.
Other than the provision of materials for repair and maintenance, the Agreement does
not stipulate that APDCL will reimburse the franchisee for expenses incurred above
the budgeted monthly OPEX. The franchisees obligations that have to be funded are
day-to-day minor repairs and maintenance, disconnections/reconnections and
regularization of illegal consumers; consumer survey, consumer indexing and
alignment to specific feeders and DTR; assistance in the finalisation of APDCLs asset
register; meter reading; bill generation; bill distribution and revenue collection;
compliance with all safety; repairing/replacement of incorrect consumer meters
during his/her tenure (APDCL will replace incorrect/damaged meters before the hand-
over) ;maintenance and system requirement under the Supply Code; surveillance
against theft of electricity, equipment and appliance; among others.
o APDCL makes a clean profit on the franchisees investment without the corresponding
risk. It keeps the franchisees 2-month security deposit and earns a 13% interest on
it. The franchisee earns 25% ROI already includes the return on his security deposit
thus only 12% is earned for his effort because he could have earned the other 13%
had he kept it in a bank. APDCLs revenue calculation for Shibsagar under the heading
Additional Value Creation for APDCL for example projects additional revenue to be
earned from the utilitys Use of deposited security money at R s143,416 per year.
The franchisees ROI is estimated at Rs 312,050. The investment includes a) 2 month
security deposit amounting to Rs1,103,199 and b) Other investments amounting to
Rs145,000.00
o Imposition of a 1.5% per month surcharge for failure to remit or late remittance of
the mandatory collection of 90% of the principal amount of the arrears incurred
during APDCLs operations. While the franchisee is granted a 15% incentive on the 10
monthly instalments of the remittance, the risk of non-collection and consequently, of
penalty is high because the arrears were incurred when APDCL was still in charge of
the franchise area.
o Exclusion of the HT consumers from the coverage of the franchise can also diminish
the franchisee financial sustainability. HT consumers accounted for 66% of the total
load of HT and LT consumers in March 2010 and only 14% of the accumulated
arrears.
o The BST rate per unit is only slightly higher than the tariff rate per unit thus,
providing a very small margin only for errors in the calculation of the BST and on its
assumptions. In Shibsagar, the margin is 4.4%.A tariff-indexing ratio will be applied
in the event of tariff revision by the AERC.
Vague APDCL commitment on capital investments. While Section 3 Scope of Work of the
Agreement states that Capital Investment and major repair and maintenance shall be the
APDCLs responsibility, the Agreement does not specify the type and/or amount of
investments to be made during the life of the contract. Instead, Section 9 Roles and
responsibilities of the distribution company simply states that and also improve the quality
of supply by augmenting transformer and substation capacity to the extent possible
(underscoring supplied). Considering the companys financial difficulties, there is a high
possibility that this investment will not be undertaken;
No commitment by APDCL to provide regular power supply. The same Section 9 states that
ADPL would endeavour to maintain smooth power supply(underscoring supplied)
Insufficient technical support. The Agreement only spells-out technical support during the
familiarisation phase for consumer indexing and the provision of billing software together with
some assistance to the staff for generating the consumer bills.
3.1.3. FINAL ACTION PLAN

It will not require much effort to propose that APDCL address the gaps in its IBDFS Scheme that were
identified in Interim Reports 1 and 2 by say, reducing the financial risk and improving the return to
the franchisee, committing to specific amounts and type of investments, improving power supply ,
providing technical support, and so on and so forth. But are they doable? The solution to the problem
cannot be divorced from APDCLs institutional capacity to carry them out. Unfortunately the appraisal
undertaken in this project of the utilitys operations strongly shows that it does not have the capacity
to do so, at least not in the medium term. Hence, the appropriate solution will be one that transfers
the responsibility for implementing the Scheme to an external party and leaving only with APDCL the
responsibility to facilitate such transfer and its monitoring. The choice then is between an electric
cooperative and a private corporate franchisee, whose features and key success factors were detailed
in Interim Report 2. However, while the former has the advantage of consumer participation; it will
require, aside from access to concessional financing, massive technical support that the government
may not be able to provide. The situation thus favors a competitive bidding among private bidders for
the franchise with the following key elements:
a) Output based. In terms of target levels of electrification , by feeder and/or households;
b) the franchisee will be responsible for all capital investments, operations and maintenance and the
procurement of power supply (or by own distributed generation) to serve 100% of the load, with
a minimum guaranteed supply from APGCL as a rider to the franchise contract;
c) Franchisee to separately contract for transmission with AEGCL;
d) a contract term of at least 25 years, extendable;
e) Coverage of all categories of consumers in the franchise area in order to enhance the financial
viability of the franchise;
f) (i) Payment of monthly wheeling charges only to APDCL or the PV of all wheeling charges for the
duration of the contract term payable in say, two instalments or (ii) if the franchisee is the
operate the distribute system in the franchise area, lease payments to APDCL for the latters
systems/ equipment in the form of a one-time payment for the life of the contract or payment in
tranches
g) Bid variable will be the PV of the wheeling charges or the PV of the lease payments which shall
be the floor and the tariffs to be charged to the consumers with the latter assigned a higher
weight. AERC to determine tariff ceiling per consumer category that could be announced either
ex-ante or ex-post;
h) Franchisee tariffs to be set by the regulator separately from that of APDCL , plus or minus a
tolerance from the existing APDCL tariffs;
i) The franchisee to receive all government subsidies intended for subsidized consumer categories ;
access to government funds provided under the various schemes on application ; and avail of all
tax exemptions and benefits enjoyed by APDCL to the extent allowed by law.
j) Franchisee to demonstrate that it has the required financing (or access to), management and
technical expertise
3.1.4. IMPLEMENTATION IMPERATIVES

Legal/Policy framework. An output-based scheme is not among the models of the RGGVY,
which are all input-based. Its implementation will thus require the necessary legal and policy
amendments;
Preparation of reliable baseline data. All baseline data, e.g. consumers, load, system
reliability, etc have to be prepared by the APDCL (with the assistance of external experts
where necessary). Bidders will be allowed to undertake their own due diligence prior to the
bidding;
3.1.5. PERFORMANCE MONITORING INDICATORS

The performance monitoring indicators will be the percentage of households or areas electrified as
agreed in the contract.
3.2. RRES
The benchmarking criteria for RRES will be the same as those for the IBDFS: Replicability and
Sustainability. The comparator project, the Alliance for Off-Grid Renewable Energy Project (AMORE) is
perceived to possess these characteristics as evidenced by its project outcomes.
3
a) AMORE
a.1) Project Background and Outcomes
AMORE is a renewable energy-based rural electrification and economic development project in
Mindanao, the 2nd largest group of islands in the Philippines, under the DOE Missionary Electrification
Program. . The alliance consists of the Philippine Department of Energy (DOE), the US Agency for
International Development (USAID), Mirant Philippines, the Autonomous Regional of Muslim Mindanao
(ARMM) and Winrock International. USAID and Mirant provided the project funding. USAID
shouldered the cost of planning, project development and community organisation and part of the
equipment cost which was largely shared with Mirant. The latter provided over US$2 Million that
represented about 20% of the total project budget. Other private utilities in Mindanao such as the
Davao Light and Power Company contributed to the project by funding the acquisition of the solar
photovoltaic systems for off-grid rural communities, called barangays, in its franchise area. Winrock
was the designated USAID implementer of the project.
The project exceeded its target to electrify 160 barangays in the ARMM and Western, Central and
Southern Mindanao from 2002 to 2005 by energizing 200 barangays with 5,534 households or
approximately 27,670 beneficiaries. A total of 259.5 kW of peak capacity from PV systems was
installed while those of the three micro-hydropower systems that were constructed reached
27kW.Theproject had a strong community participation component; established a working community
financing mechanism for the operation and maintenance of the RE systems installed; initiated and
3
This summary of the AMORE project was drawn from the AMORE Final Project Performance Report, 2005 and was
updated by recent interviews with DOE officials who confirmed the sustained successful operation of the project to
date.
supported livelihood projects; implemented a series of communication plans on the project- the key
ingredients for its sustainability and replicability. It overcame huge challenges many of which are
common to remote rural areas and/or to this type of projects and one which was unique to the region
in Mindanao where the project was operating, namely:
Military rebel conflicts, clan wars and conflicts, and other personal and political conflicts;
Reconciling stakeholders interests and agendas;
Extreme poverty in many barangays;
Hazardous travel conditions to far-flung islands and uplands;
Land tenure and resource use conflicts;
Lack of flexibility in the selection of beneficiary barangays;
Complex barangay clearance process;
Initial scepticism and cynicism of barangay residents.
b) Best Practices
b.1) Community Participation
AMOREs defining achievement was in catalysing the peoples participation in the project. It was able
to do this by:
Adapting its community organising approach to local conditions. The host regions
long history of unresolved religious, ethnic and political conflicts necessitated the adaptation
of the projects organising approach to the local conditions, culture, needs and aspirations.
The communitys explicit consent and endorsement of each project component were
unfailingly secured; a process that built trust; overcame the initial hostilities; and secured the
beneficiaries full participation in the project;
Community Counter-partying. The project worked hard to banish the dole-out mentality
and develop a culture of self-help. The ingrained pride of the Mindanao peoples helped to
make this task easier. All capital equipment for energy supply and livelihood activities were
subsidized but not given out for free. To strengthen the sense of ownership, a system was put
in place to collect funds for recurring expenses. Other possible avenues for the promotion of
community participation were tapped such as community assemblies; participatory rural
appraisal; communal operating and maintenance fund; participation in drawing up the
barangay association by-laws; requiring the provision of labour and supplies as counterpart
contribution to the project; among others;
Utilisation and Development of Local Talent. Local NGOs and community development
officers were employed for community organising that eased communication and built trust.
Development of Local Leaders and Promotion of Self-Governance. Leadership skills
capacity-building and encouragement of democratic practices, instead of autocratic rule by
the village leader were pursued;
Holistic Development Approach. Electrification was treated as just one component of a
bigger picture: community empowerment for sustained self-development. Consistent with
this, the delivery of electricity was not limited to household and communal lighting purposes
but as a catalyst for livelihood projects that the project helped to initiate and nurtured;
Multi-sector Alliance-Building. The project built partnership with many public and private
sector entities to bring about the necessary technical, financial and marketing assistance for
the livelihood projects, non-RE related social projects; apart from the provision of RE
systems.
Pro-Active Information-Dissemination. Widespread acceptance of the project in Mindanao
was cultivated through Information, Education and Communication Activities.
b.2) Sustainability Focus and Mechanisms

Apart from its community participation focus, the project implemented a number of
activities/mechanisms to ensure its long-term sustainability, namely:
Supporting the establishment of solar parts and service centres, in addition to training
community technicians for trouble-shooting;
Demonstration and training on Productive-Use and social RE Applications, such as high-value

vegetable farming and community library;
Establishment of Technical, Financing and Marketing Linkages for livelihood activities;
Federation of Barangay Renewable Energy and Community Development Association
(BRECDA). This regional grouping or networks was intended to facilitate the sharing of best
practices, lessons learned, time and resources.
c) Lessons Learned
The key lessons learned from the project that could help similar undertakings are:
Early Harvest. Achievement at the early stage of the project is critical to establish
credibility;
Preference for Solar Systems over Battery Charging Stations. This was due to
individual ownership; ease of safeguarding against theft; convenience; capacity to power low-
energy consuming appliances such as radios and black and white TV;
Micro-hydro where feasible is the most preferred RE technology
Grid electrification highly preferred over off-grid RE-based electrification
3.2.2. GAP IDENTIFICATION AND ANALYSIS

The implementation of the scheme has encountered technical and financial problems, specifically,
from missing systems and failure of the beneficiaries to pay the Rs40 monthly dues. Installed
systems are either sold or given away as a gift by the beneficiary, stolen, or moved by the
beneficiaries when they relocate to another village.
The project s gap is the same as those faced by similar remote village electrification projects around
the world that preceded it, as found in various studies of the World Bank, and even by the ADB. This
is, the inadequate attention to active and committed community participation and twinning with
economic development projects the key ingredients to their sustainability. Instead of focusing on
the delivery of electricity alone, the RRES orientation needs to be changed from one that is limited to
the delivery of free RE-installations and their maintenance including the collection of contributions to
fund the replacement batteries to one that embraces active community participation and the
development of livelihood projects at its core.
3.2.3. ACTION PLANS

Remote village electrification is a social and economic intervention. The delivery of electricity is just
one of its ingredients. As such, its success requires that:
a) Project implementation shall be outsourced from the APDCL/ASEB to organizations with the
requisite skills in community development either by competitive selection or by appointment
based on a track record of success. The project can have more than one implementer with
separate coverage areas;
b) The Project coverage shall be limited to areas that cannot be economically served by on-grid
electrification. Not only is this consistent with the preference of the beneficiaries as discovered
in the AMORE project; it will also make the project, that is already daunting, more manageable;
c) The creation of an inter-agency government body (private sector participation will be more
desirable) to ensure the delivery of all the support necessary to enhance the projects chance of
success. APDCL/ASEB shall be members of this body that should ideally be led by an economic
development agency.
3.2.4. IMPLEMENTATION IMPERATIVES

To succeed, the project will need: a) a skilled and experienced project implementer; and, b) the
advocacy and technical and financial support of all GOA and GOI agencies concerned.
3.2.5. PROJECT PERFORMANCE INDICATORS

The performance indicators shall comprise of a) electrification achieved vs. targets; b) inclusion and
successful implementation of sustainability and replicability mechanisms led by active community
participation. The sustainability mechanisms will include:
Supporting the establishment of solar parts and service centres, in addition to training
community technicians for trouble-shooting;
Demonstration and training on Productive-Use and social RE Applications, such as high-value
vegetable farming and community library;
Establishment of Technical, Financing and Marketing Linkages for livelihood activities;
Federation of Renewable Energy and Community Development Association. This regional
grouping or networks shall act as the vehicle for the sharing of best practices, lessons learned,
time and resources.
IV APDCL-HUMAN RESOURCE MANAGEMENT
1. KEY OBJECTIVE OF AS-IS ANALYSIS

The key objectives of the As-Is Human Resources Management Assessment are:
1. To make this assessment with reference to, the key guiding HRM principles to determine
successful unbundling, as outlined in the Inception Report:
The achievement of separate entities with appropriate autonomy and enhanced
accountability to their respective targets, as well as strengthening of their competitive
capacity
Enhanced role of the Human Resources function/processes in providing strategic and
proactive support and service to the organizations in the effective management of its
human resource
With the approved organization structure (reflecting appropriate levels of accountability
and authority) as the reference point, all vacancies to be filled with qualified staff
Moving to a performance based organization
Staff that is motivated and engaged, including strong commitment to achieving the
goals and targets of the new independent companies
2. To make this assessment in the practical context of focusing on areas and issues where this
consultancy can make a practical and sustainable difference.
3. To make this assessment with due consideration of another principle contained in the
Inception Report, namely that the HRM element of this consultancy must be synergistic with
the overall context and scope of Technical Assistance (TA) of ADB, and build on the work of
previous consultancies to support the functional unbundling and autonomous decision making
of the Assam power utilities by 2014
4. The scope and coverage of the section is: to assess as much as possible the status quo of the
three entities in terms of: (a) organizational structure, (b) HR management and Policies and
(c) Training management processes and Policies
To reference, the list of HRM elements outlined in the Inception Report are:
Capacity of HR Function (cadre)
Manpower Planning System and Manpower Norms
o Manpower norms for key processes (ratio of Executive to non Executive; number and
level of posts)
o Current Status on: Positions Sanctioned to Positions Filled (Executives) new vacancies
and vacancies arising from superannuation; skills and number mismatch ;system of
annual approval and sanctions
Standard manpower modules /defined manpower norms for Generation (Main Plant; Off Site,
etc.), Transmission (substation; transmission lines construction and operation & maintenance)
and Distribution
Recruitment and Selection
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AF MERCOS EMI - L
Employment Conditions
Performance management
Succession Planning
Basis of promotions in the Executive category - Any fast track promotions; Average years
spent in each grade for executives)/ minimum period of service in the grade to be considered
for promotion to the next grade
b description/ job specification for executive and non-executive positions
Cadre schemes
Classification and grades: number of pay grades and levels in the current executive
cadre/hierarchy.
Rewards system/financial incentives linked to performance
Employee Training and evelopment
Employee Communications
Compensation structure; any other comparative considerations
man Resources Information Systems including data on skills, knowledge, retirements etc.
2. PROJECT PERFORMANCE MEASUREMENTS

Of primary importance in proceeding with the M, training and capacity building elements of this
consultancy is to establish some form of R steering group each company to facilitate, coordinate and
oversee all the changes required. This steering group should: a) have a clear mandate tasks,
approval and reporting requirements, development of action plans, etc.); b) have people who can
dedicate time and not be hampered by availability issues for work and meetings; andc) have
representation of PMU. This groups action plans should contain measureable targets and indicators
that would become part of the performance measurement regimen of this project.
As specified previously, there are five main guiding principles driving the RM component of this
project. To realie the ultimate goal of successful unbundling and to achieve optimal sustainable
performance in the three companies, there are a number of indicators the consultants are using for
each of the five RM principles:
1. The achievement of separate entities with appropriate autonomy and enhanced
accountability to their respective targets, as well as strengthening of competitive
capacity
Each company should have a process for developing and approving organiation structures)
Measurement Indicators:
o Process fully described who, what, when, why, where)
o Process involves input of R expertise item 2.below)
o Process involves input from and coordination with other components of the consultancy
s-is organational structure analysis for the three companies)
o Specific measurement indicators part of the process, i.e. flow from the process for
developing and approving organiation structures)
Organiation structures charts) reflecting both appropriate autonomy and enhanced
accountability are approved
o Appropriate reconciliation of fast-tracked R processes and staffing item 2, below)
o Reconciliation of the manpower planning, training and capacity building plans of this
consultancy
o Reconciliation of the organiational conclusions and recommendations flowing from other
components of this consultancy business plans, business process action plans)
o Reconciliation of best practices and national electricity sector benchmarks including
attention to structures that are proven to improve competitiveness)
Assam: Capacity evelopment of the Assam Power Sector Utilities Final Report stribution IV-
AF MERCOS EMI - L
b descriptions for all key management positions that mirror what is reflected in the
approved organiion charts are developed and approved
o Adherence to the R process for job description preparation item 2. below)
o Specific measurement indicators part of the process, i.e. flow from the job description
process.
An implementation plan for moving from status quo organiation to new organiation is
developed, approved and executed
o Implementation plan fully described who, what, when, why, where)
o Reconciliation of the manpower planning, training, capacity building and communications
plans of this consultancy
o Specific measurement indicators part of the implementation plan, i.e. flow from the
implementation plan.
New organiation charts and implementation plan are effectively communicated to those that
need to know
o Verification that all those who need to know are covered per the implementation plan
o vetail with communications and stakeholder consultation plans of this consultancy
2. Enhanced role of the Human Resources function/processes in providing strategic and
proactive support and service to the organizations in the effective management of its
human resource
There are two important measurements for the enhancement of the R function, staffing vacancies,
performance review, and staff motivation/engagement: measurement of process-oriented
development and measurement in terms of ongoing ultimate HRM metrics that should ultimately form
part of the management of human resources in each company. In most cases these on going
measurements are contingent on R processes first being in place
Generic strengthening of the function

o Executive irector R) level position in each company by 21)
o Plan to recruit/ develop people from within, to staff this Executive irector R) level
position
o Plan to recruit/identify and develop people from within, to staff existing key R
positions, as well as emerging positions resulting from new R processes
velopment of a ob scription process
o b description formats aligned to appropriate levels of skills, knowledge, competencies,
responsibilities etc.
o Guidelines for preparation of job descriptions who, when, how, approvals etc.)
velopment of a process to monitor and communicate Sanctioned Posts lists
Measurement Indicators
Linked with budget and approval protocols for filling posts
o Method for ensuring appropriate people are placed
o o monitors
o On-going communications procedure how and when)
velopment of R function practices to support the process as above) for both developing
and approving the organiion structure and approving related sanction posts list.
o who, what, when, why, where
MCADOS I L
Development of R function practices to support the process as below for Performance

Review
Development of R function practices to support the process and activities as below for
motivating and engaging staff committed to achieving the targets of the companies
Development of a Manpower Planning process
o Provision for internal informati succession, retirements, personnel inventory sills,
competencies, training, education incumbency data, organiational development
o Provision for ernal informati labour mar trends
o Linage toOA policy
o Decision maing and approvals in planning
Development of a Training process
o Training needs assessment
o Reconciliation of available internal and eternal source resources
o Planning protocol
o Advisory and decision maing protocols
o Linage to budgeting process
o Policy
o Linage to employee development and performance review
o Reconciliation of all aspectslevels of training induction, technical, management,
customer relations, professional etc.
On-going/ultimate HRM Metrics
o Revenue per employee revenue total of employees
o Tenure verage of years of service at the organiation across all employees
o Trainidevelopment hours sum of total training hours total of employees
o Absence rate days absent in month average of employees during a month of
wordays
o Compensation or benefit revenue ratio compensation or benefit cost revenue
o Turnover costs total costs of separation + vacancy + replacement + traini
o Benefit or program costs per employee total cost of employee benefitprogram total
of employees
o Salary compensation as a percent of total compensation annual salary total
compensation salary + benefits + additional compensation
o Benefits as a percent of salary annual benefits cost annual salary
3. With the approved organization structure (reflecting appropriate levels of
accountability and authority) as the reference point, all vacancies to be filled with
qualified staff
Process Measurement Covered above with respect to the development of a process to
monitor and communicate Sanctioned Posts lists
Assam Capacity Development of the Assam Power Sector tilities nal Report Distribution IV132
o Cost per hire (recruitment costs (compensation cost + benefits cost)

4. Moving to a performance based organization (from a seniority based one)
Development of Performance Linked Motivational Schemes
o Schemes that have been successful in electricity reforms in India
A Performance Review system linking performance to organizational goals, promotions and
salary
o Specific measurement indicators would be contained in (flow from) the aforementioned
process implementation plans
o Process architecture appropriately aligned to levels of skills, knowledge, competencies,
responsibilities etc. (including forms and documentation aligned accordingly)
o Process ensures appropriate collaboration between (and input from) both the appraiser
and appraise,
o Process fully describes and documents the steps and participants (including support role
of HR function, reviews, approvals etc.)
o Process provides for appropriate record system
o Process ensures measurement of all aspects of performance: company goals,
departmental goals, quantitative targets, job description requirements, people skills and
behaviour, team skills etc.
o Process provides focus on development (future orientation) as well as performance per se
(backward orientation)
o Percent of performance goals met or exceeded (number of performance goals met or
exceeded divided by total number of performance goals)
o Percent receiving performance rating (total of employees rated under a given score or
rating on their performance evaluation divided by total number of employees
5. Staff that are motivated and engaged, including strong commitment to achieving the
goals and targets of the new independent companies
Note: Measurement of this factor should be in stages (immediate project related and longer run on
going) and should come from project specific indicators as well as outputs of new HR processes.
Goals of each company are clearly communicated to all staff (measured by an audit of
communication of goals to staff)
o Targets of the project Communications Plan are met
o The aforementioned HR steering group/committee audits communications, including
insurance that communications are appropriately tailored to levels, categories and types
of employees
Employees are achieving individual targets that support utility goals and targets
o This measurement could only come after implementation of new HRM/Performance
Management processes referred to in item 2. above (presumably priority/urgent or short
run)
Employees are motivated and engaged
o This measurement could only come after implementation of new HRM processes referred
to in item 2. above (presumably longer run and sustainability)
Develop or purchase short-run quick-win surveys to measure employee motivation and
engagement
o Results of such surveys
o Engagement or satisfaction rating (percent of employees engaged or satisfied overall or
with a given aspect of the workplace)
o Ultimate indicators/measurements of employee motivation and engagement should
involve surveying staff on the following 12 uestions:
1. Do you know what is expected of you at wor
2. Do you have the materials and euipment you need to do your work right
3. At work, do you have the opportunity to do what you do best every day
In the last seven days, have you received recognition or praise for doing good wor
5. Does your supervisor, or someone at work, seem to care about you as a person
6. Is there someone at work who encourages your developmen
7. At work, do your opinions seem to count
8. Does the mission/purpose of your company make you feel your job is important
9. Are your associates (fellow employees) committed to doing uality work
10. Do you have a best friend at work
11. In the last six months, has someone at work talked to you about your progress
12. In the last year, have you had opportunities at work to learn and grow
3. ASSUMPTIONS
As previously discussed, the uman Resources Management (RM) Assessment component of this
project is critical to the achievement of the operational reform objectives of the three entities
involved in this consultancy. ence it is important to outline the major assumptions made by the R
consultants in proceeding with their work.
3.1. INTERNAL
The overriding assumption is the pursuit of the five key guiding RM principles outlined
previously in the section on the objectives to the as-is analysis.
Given the magnitude and complexity of changes, and improvements in M, it is critical
for both analyses and recommendations to be practical, do-able and appropriately
simple. Proper sencing, taking into account the status versus end positions, will
be the key to successful and effective change. ence the consultants will focus on areas
and issues where they can make a practical and sustainable difference.
The consultants must rely on available input and documentation. Given the structure of
the project this will be gleaned over a short period of time with the cooperation of staff
from the three companies. It is assumed that the documentation received and the input
from staff, when reviewed in conjunction with the reports and work of previous recent
consultancies, will provide a sufficient indication of the status uo and point to effective
M, Training and Capacity Building recommendations.
As with any R reform of this type, it is assumed that a holistic approach is rered.
The integral relationship and inter-play between organiation, process, policy and
staffing dictate this.
As pointed to previously, it is assumed that an effective strategy for reform will take
advantage of, and reconcile as much as possible, the work and recommendations of
other consultancies that were involved with the Technical Assistance (TA) of ADB.
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution IV-
3.2. EXTERNAL
The HR reforms should follow as much as possible, within the bounds of practicalities
(per the second internal assumption above) the best practices of other electricity
utilities in India, including as applicable, how they implemented their reforms.
The HR reforms should follow as much as possible, within the bounds of practicalities
(per the second internal assumption above) international HR best practices.
4. AS-IS ANALYSIS

The assessment of the organization structure was based on the organization charts per se and supporting documents such as sanctioned posts lists and the PWC
organizational proposals, as well as input from staff of the three entities. The consultants followed as much as possible the steps outlined in, and referenced the
anticipated outcomes listed in, the Inception Report.
Table 16 - Organization structure As-Is analysis
Key Element As-Is Analysis Consequent Suggested Considerations
Approved Structure and Current DISCOM (APDCL) Based on finalization of organization structures to
Status develop processes to ensure :
Three organization charts were provided to the
consultants, one for each of the upper, central and o Staffing the structure(per sanctioned posts)
lower distribution zones (formerly UAEDCL, CAEDCL and
o Criteria for assigning existing personnel to new posts
LAEDCL). Since the merger of all three companies into
one distribution company (APDCL) there was a o Identify gaps and plan recruitment
consideration underway at the time by its Board of
Directors to finalize the organization chart and related Ensure that organizational analysis and development is
sanctioned posts, as well as to reconcile findings of the done in a holistic manner such that all factors of
2010 PWC report. This was earlier expected to be coordination and interplay are taken into account
completed by February 2011 This rationalization of the Linkage of organizational structure and supporting
organization chart will mainly affect the corporate documents (sanctioned posts, job descriptions etc.)
structure and in the meantime the existing structures
and sanctioned posts continue as is at the zone level. Use of analytical work and recommendations of PWC
report
The Organization structure of APDCL was, however,
finally approved by BoD on 28th February 2012. As reform progresses ensure developing HR processes
are described fully and are carefully aligned to
organizational structure development
Ensure sanctioned posts related to the organization
structures are listed and that there is a system to
monitor and record bi-annually the status of filled posts
(vacancies)
Salient Aspects of Organization APDCL (Distribution Company)

Structure for APDCL
The responsibility lines between the Assets Managers
handling Commercial and Operations functions
(reporting to Sr. Manager) are blurred and ambiguous

at the subdivision level and need to be defined clearly.
Some functions such as Performance Monitoring and
Preventive Maintenance are absent.
A senior officer may be attached to the MD to perform the
A core group of 4-5 at the circle level needs to be functions of monitoring of progress of ongoing as well as new
provided for preventive maintenance. Monitoring role projects.
accompanied by a good MIS, needs to be strengthened
He may report specifically about safety, health and
at level of Subdivision. For Distribution loss reduction ,
environment issues directly to the MD as these issues are
to consider creating a dedicated core group of
likely to be neglected at the field level.
champions/unit in this area with specific targets
IT:
o Distribution:
At corporate level, IT function is totally absent. Need to
have a core group of 8- persons to manage the
databases and IT infrastructure.
There are different data bases dispersed at the
subdivision level in APDCL.
rther, at subdivision level there is no IT support
where all consumers related and other data resides
currently. There is a need to provide suitable IT support
erhaps one IT person per subdivision in rural areas
and one per division at Urban circles)
HR
To consider upgrading the Head of HR position to
Executive Director level in 204, when the process of
disaggregation is complete.
To consider filling positions at mid levels in HR structure

lready provided at AM and DM level in the
approved chart)it could be a mix of both external
recruitment and internal placement.
4.2. HR MANAGEMENT AND POLICIES

The assessment of HR Management and Policies was based on documents obtained and interviews held with staff of the three entities (including the PMU) during
the Inception mission. The consultants followed as much as possible the steps outlined in, and referenced the anticipated outcomes listed in, the Inception Report.
Table 17 - HR management and policies As-Is analysis
HR Policy The consultants were informed that presently HR policy Clarify existing/current policies and summarize/codify
is the same across all three entities. The most relevant into user-friendly format, ensuring they accurately
existing document describing HR policies is The Assam describe existing HR processes and practice.
State Electricity Board Employees Service Regulations
Develop new policies required to: (a) reflect
dated 1960. There have been, as to be expected, many
contemporary HR best practices (i.e. policies reflecting
amendments since 1960 which have not been codified
a strategic, proactive and transformational HRM
into a composite document.
function) and (b) accurately describe and support new
HR processes
On new processes [e.g. training, employee
development, promotions & performance
management (in the long run)], keep policy per se
simple, succinct and generic until process refinement
is achieved
Ensure policy is realistically aligned to and supports
existing and emerging processes
Avoid convoluted and overly detailed policy
statements
Taking into account the individual needs and roles of
the three companies (including support of business
goals),develop policies that appropriately apply to
each of the three companies
Ensure appropriate consultation with all relevant
stakeholders
Clear and appropriate protocol for finalization,
approval communication and monitoring of HR Policy
(including ongoing revision)
In developing policy ensure consistency between
documents, nomenclature, titles, levels, organizational
AF MERCADS EM - NDPL

units etc.
Function (CADRE) Shortage of qualifiedR staff. As indicated previously the uman Resources
Management (RM) Assessment component of this
cluding the issue of 20 eecutive engineers in R project is critical to the achievement of the operational
positions in the field (Distribution), whose skills are
reform objectives of the three entities involved in this
consultancy. t is important to at least get the
misplaced and not utilized where needed
Development of new R processes to more appropriate R people and ertise in place to guide
effectively manage the human resources and to and facilitate both the R related changes involved in this
support them in achieving their short and long term consultancy as well as the development of the
goals (including requisite staffing needs at strategic concomitant R processes themselves.
entify/describe in detail the R epertise required
levels)

for both the short and longer term (quantity and
quality)
Note: There are new R processes that will need to be
addressed such as: entify all available resources to achieve the
aforementioned ertise: sting staff, qualified
Staffing of isting Sanctioned Positions people in the labour market (locally and if necessary
Manpower Planning nationally), possible potential for contracted out
Succession Planning services as needed, training resources that could be
Recruitment used to augment skills and knowledge of eisting staff
Performance Management etc.
Employee Communications
man Resources Records and nformation Develop/establish some form of R Steering
Systems (RS) group/Committee to facilitate, coordinate and oversee
all the R changes required in this consultancy,
There is a lack of strategic perspective with regard to ensuring : a clear mandate (tasks, approval and
how the company manages its human resources, reporting requirements, development of action/work
insofar as it has limited professional R functionaries plans, etc.)
and till recently was headed at the level of
DGM(currently headed by CGM.. Ensure that appropriate attention is provided to the
strategic, transformational and proactive role that
The consultants were informed that there is a good man Resources Management should play within
supply of qualified R people in the Guwahati labour each company.
market.
Ensure appropriate and careful attention to new
As indicated in the as-is organizational section, the process development, and in so doing avoid
C 2010 report offers some pertinent unnecessary and piecemeal bureaucracy and red
recommendations around enhancing the R tape. New processes suggested for strategic/timely
organizational structure to reflect a needed and more

transformational (proactive and strategic) role for HR. development and implementation:
o Staffing
o Manpower Planning
o Recruitment
o Performance Management
o Employee Communications
o Human Resources Records and Information
Systems (HRIS)
Ensure HR processes serve corporate purposes, use
line management as well as staff management
people as partners in the process and fully utilize HR/
professional expertise.
In developing new processes reconcile the
requirements of RAPDRP funding.
Follow-through on the PWC 2010 recommendations
pertaining to enhancement of the HR function.
Staffing of Existing Sanctioned Positions Based on the inputs and documents provided to the Note: Most of the deficiencies in staffing identified in the
consultants a number of weaknesses were identified in as-is analysis would be alleviated considerably by the
the staffing of existing sanctioned positions: development of the HR processes shown as suggested
considerations (above) in the key element of
Many positions remain vacant at present, allegedly
development of the HR cadre. Of particular relevance will
due to the transitional phase of reform and lack of
be the Staffing/ Promotions, Manpower Planning,
budgetary resources
Recruitment and HRIS processes. In developing these
There is evidently a shortage of staff in many areas processes ensure consideration of the following:
There are numerous people at senior levels holding Thorough records of sanctioned posts, staffing status
2 or 3 portfolios at the same time, e.g. the Member available in a timely fashion to all those who need to
Technical also holding the position of CGM (Lower know (HR cadre support staff, responsible managers,
Assam Zone) for APDCL. e.g. The DGM (HR) for the budgeting managers and officers etc.)
Distribution Company (Lower Assam Zone) also
Close and thorough coordination between business
performed the Law and IR functions for the all of
planning and budgeting processes
the three ASEB entities.
Clear delineation of responsibility for
Note: Clearly with this multiple portfolio situation,
MERCOS EMI - L

there is a strain on the output of these portfolios. monitoringfollow-up of staffing of sanctioned posts
In the istribution company there are currently Close reconciliationlinkage of staffing of sanctioned
engineers doing obs related to revenue (that would posts with the various relevant R processes, such as
be better done by accountants) at the subdivision for example: organation chart preparation, ob
level descriptions ob specifications, performance review
records, and employee records (performance, skills
There are functional work requirements that are not
inventory, educational and professional qualifications,
covered by existing sanctioned positions, e.g. the
work experience, training received etc.)
transmission company has a dire need for a law
officer but the approved list of sanctioned positions
does not include one.
Manpower Planning The following information, gleaned by the consultants Note: Manpower Planning is covered above as one of the
from interviews with R executives from different processes to be developed in conunction with the
companies, signifies a void in Manpower Planning. enhancement of the R cadre. In developing this process
ensure consideration of the following:
Lack of Manpower planning became evident, some
examples: the current demographic data reflects that Age and service profiles
of employees will retire by year and Organiation charts
approximately 0% of staff is over 50 years of age.
b classification and incumbency data
Personnelskills inventory data
A successor for the GM (R) was not known within
a week of his retirement. recasted retirements
There had been no replacement for a legal officer at Expected Employee turnover
puty Chief Engineer level who retired in 200, People utiliation (productivitcost data)
although there was a dire need for the same.
Budgeted headcount data
Some skill sets are missing and there is a need for
career-linked interventions (examples Manager to External workforce data (Labour supply)
Senior Manager and General Manager to Chief
Company short and long run goals (macro and
General Manager).
micro)
Linkage to Training and Capacity Building data
The PWC organiational reports also identify and programs
demographic data wherein a need for the
Linkage to Performance Management data and
development of a Manpower Planning system as part
programs
of RM is reflected. .or the istribution
company(APCL) Creation of new cadres- (discussed above) and an IT
Assam: Capacity evelopment of the Assam Power Sector Utilities nal Report stribution IV-

e.g. average age of staff is 2 cadre especially for the Distribution Company is required.
e.g. approximately 7 of total staff are above age
and 7 of executives are age or more
Note: Closely related to Manpower Planning is Training

and Capacity Building which is covered in other sections
of this as-is analysis
Recruitment Almost all recruitment is done at induction/entry Specifically, the following considerations should be taken
levels. into account in developing a recruitment function in each
company:
The Assam State ectricity Board ployees
Service Regulations dated 196. (Referred to in the To review recruitment policy and provide suitable
HR Policy element above) provide some provisions to implement, where no suitable resources
procedures related to board level selection are available internally-recruitment at lateral entry
but, as mentioned, this document is dated and from external sources
has not been kept up-to-date with subsequent
Research and reconciliation of all ongoing/available
regulations.
external resources: employment agencies, media
advertising, labour supply data, etc.
The Draft HR Policy prepared by SM dated Reconciliation of all components of an effective
contains a detailed set of recommendations on recruitment process: candidate attraction, employee
recruitment policy. The draft policy was however, done referrals, interviewing approaches, testing, reference
for only the Transmission company. Undoubtedly checking, new hire orientation, exit interviews etc.
however the contents of this will be useful. However, at
Appropriate consideration of retentio, including
this stage, these recommendations have not been
reconciliation of retention information/data
acted on and some of its suggestions are linked to (and
will be contingent on) other HR policies not yet Appropriate linkage to other HR processes or outputs
developed. of such processes: Manpower Planning, b
Descriptions, ob Specifications, Salary Administration
Full utiliion of Human Resources Information
System(s) (HRIS): individual employee data, benefits
data, applicant-tracking software etc.
Requisite budgeting for recruitment function
(developmental and ongoing)
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution -
Performance Management There are 5 types of appraisal forms in use (from CE Note: Performance Management is covered above as one
level to Jr. Engineer). of the HR processes to be developed in conjunction with
the enhancement of the HR cadre. In developing this
The forms relating to field staff in Distribution have
processes ensure consideration of the following:
quantitative measures such as revenue target assigned
and achieved. Develop a performance management systems that are
aligned to and support the needs of each company
Although the form provides for measurement of
competencies and quantitative targets-it is effectively As an overriding consideration, pay careful attention
not put to use for any purpose. to practicality, user friendliness, and implementation
staging, taking thoroughly into account available
Only adverse reports (very exceptional) are used from
resources, existing process and organizational
debarring the employee from promotion.
readiness
Clear and simple communication of the process to all
Analysis of the existing performance system was done affected
with five (5) factors in mind:
Develop performance parameters: core performance
1. Process and Policy competencies, job specific requirements and Key
Result Areas (KRAs) that are succinct and simple at
A description of as-is with respect to performance first so that they can be built on and consistent across
review is difficult due to the following policy issues: the four entities)
There is no approved and complete/integrated In the development of all performance parameters
policy that describes the performance review ensure appropriate attention to: what is expected
process. The only way for the consultants to (quantifiable goals and targets) as well as how it is to
understand the process was through verbal be attained (behavioural, attitudinal, interpersonal
description of practices, input that was scant and teamwork factors)
during the Inception Mission
Consider the linkage between Performance and any
The only written description of process provided to group incentive schemes, Job Descriptions,
the consultants (aside from forms) was Office Recruitment ,Staffing and Promotions
Order No. ASEB (CON) 23/95/29 dated Dec.26,
1997. This order does not go a long way to Thorough training of all main participants in the
describe the process: e.g. it describes the roles of performance review process as well as the skills
the Recording Reviewing and Accepting Officers required within the process
It is evident that there is a process in place.CGM HR( Ensure an integrated computerized record system for
the former Director Personnel ASEB) is the custodian of the performance component of the overall Human
the of appraisal records for class I and II employees resources Information system (HRIS)
and all other appraisal forms for class III&IV employees
Ensure the direct and indirect costs of an effective
are retained in the establishment sections of their
performance management process are appropriately
respective companies. Beyond this there is no further

evidence of the elements that would normally, in budgeted
accepted best HR practices, comprise such a process.
In developing a Performance Management Process
Note: A review of the forms involved in the process, reconcile and utilize, as much as practical, the work of
namely the Annual Confidential Report (ACR) for class PWC (Performance Management and Appraisal System
I&II, the ACR for class III and the Performance Report 2010 report) and SMEC (draft HR policy 2007 deals
used for all employees, provide indicators of some with performance and development appraisal for
serious questions and flaws relative to accepted best executives and non-executives)
practices in performance review systems: these can be
described in the remaining four (4) factors.
2. Linkage written role descriptions, business goals,

employee development
What process exists does not show evidence of linkage
to role definition documentation (job descriptions),
employee development and training documentation,
nor business, budgetary and operational
goals/objectives documentation (i.e. documentation
external to and supporting or supplementing the
performance review process)
3. Performance competencies
There is no evidence of an organized well-thought out
set of performance competencies or indicators for
different types and levels of staff
4. Training
There is no evidence of training in two key aspects: (a)
linkage of performance review to training achieved by
employees formally or informally on the job and (b)
training on the process itself
Note: One of the most critical factors in the success of
any performance management system is training to
staff on the process (forms) per se, as well as
performance concepts and indicators. The best process

and forms in the world are futile without this training.
5. Records
Although it is known that completed ACR forms are
retained there is no evidence of systematic records.
This is related to the comments in factor 2 above and
another key element involving Human Resources
Information Systems HRIS) covered below.
Over and above analysis of the existing status, it is
significant to make mention of work done by two
previous consultancies, namely PWC and SMEC.
The Snowy Mountain Engineering Corporation SMEC)
in its draft HR Policy issued to the Transmission
company in 2007provides a detailed set of
recommendation for a Performance and Development
Appraisal system, including forms and related
competencies. More recently in 200 Price Waterhouse
Coopers PWC) also provided a report with detailed
recommendations on a performance management and
Appraisal System for successor companies of ASEB.
Both sets of recommendations provide valuable input
on this topic, and cover many of the five factors
described above. However, the approach, process,
performance indicators, forms etc. is substantially
different. Perhaps even more important, neither set of
recommendations provide action plans that would be
critical for implementation.
Employee Communications Based on the inputs and documents provided to the Design a simple user-friendly employee
consultants a number of observations were made as communications program that: a) provides a mode of
regards employee communications: communications supplemental to the only present
mode involving forums and open discussion meetings
There is no program or system for written
that could be prone to politics and union adversarial
communications to employees no employee
posturing and ) provide an opportunity for the
handbooks, booklets/pamphlets etc.)
employer to systematically get across positive
There are periodic forums conducted within messages of what it does for the employees and
individual companies at which the ASEB Chairman

and relevant MD meet with groups of staff in town how it takes into account their interests
hall-type meetings at which the staff can
Note: This suggestion relates to comments above dealing
participate and ask questions.
with the element of HR Policy
The status of the HR function (cadre) also infers
Design written material such as pamphlets/booklets
that employee communications is weak
that clearly, succinctly and in a user friendly manner
describe all employment conditions and benefits,
thereby superseding the necessity of staff (particularly
relevant to those at lower levels and with relatively
less education) from having to decipher and
comprehend a myriad of bureaucratic memorandums,
regulations, rules, revisions etc.
Ensure that any communications program is objective
and transparent vis--vis facts
Notes: (a) At this time of change and transition employee
communications is all the more important, (b) lack of
clarity and misunderstanding on the part of employees
fosters a poor environment to try and champion change
and reform
Promotion Policy 1. Promotions are vacancy linked and based almost Develop a promotion policy, particularly at the senior
entirely on seniority management levels ,which motivates and rewards
(including cadres & promotional
performance, ability and experience (as opposed to
avenues) 2. Seniority is maintained within the defined cadres
only seniority) and which adheres to the following
(Electrical; Civil ; Finance & Accounting)
principles:
3. There is a unified executive cadre across the three
o is based on a mix of merit (as determined by the
companies for senior executives (despite
Performance Appraisal System); and fulfilling
reorganization and staff transfer scheme)-to protect
minimum length of service in the grade (specified
inter se seniority and promotional avenues.
as eligibility criteria)
This has resulted in transfers across the three
o provides a standard date of promotion-once a
Companies and between various functions;
year
sometimes perhaps not fully taking into account
ability and relevant skill sets. o ensures that continuity of service is maintained
Further, this has often led to disregard for o ensures some equity with respect to promotional
continuity of service in a post. There are avenues for all cadres
situations where a senior person moves out
Note: the policy would be subject to implementation of
within 6 months of assuming a position, in case a
target linked performance based appraisals; acceptance

next higher-level position falls vacant. This is an of out of turn(read seniority based) promotions
impediment for: implementing a company
In order to address concerns regarding seniority and
specific organization structure aligned to
disadvantages in terms of promotional avenues-post
Company objectives building the requisite skill
restructuring, develop a Promotion Policy that is
sets and competencies for the Company and
appropriately squenced with transitional and longer-
taking a long-term perspective.
term implementation. Consider the following
4. There is considerable stagnation in the same grade, principles in the transitional phase:
for employees. Amongst the engineers joining at the
o employee attains the next level in the hierarchy
induction level, the first promotion is after four
and benefits assigned to higher position, despite
years as per the policy, thereafter it depends on
the position actually not existing within the
vacancies and could take 10 years and more for the
structure, but the position ceases after retirement
next promotion. In case of diploma holders, it could
take 25 years in the same grade. o quity for promotional avenues in all cadres
Develop alternative reward schemes
Industrial Relations Given the nature of union relations at ASEB and the Note: The culture of union relations is complex, political
three companies there is no documentation that in nature and entrenched. Hence this is not an area in
(Union Relations)
enables the consultants to thoroughly assess this which the consultants in this project can realistically (as
function. However, based on the input of a senior HR stated in the objectives of this as-is analysis) make a
executive the following summary can be provided: practical and sustainable difference.
There are approximately 15 unions covering all staff
except Company Secretaries and MDs. Of these only
4 are active.
Negotiations with unions are not time bound and
there are no collective agreements per se. Any
negotiations are by issue and conducted by the
Chairman of ASEB and the relevant MD on the one
side and the affected union on the other.
Some HR positions deal with Industrial Relations
(IR) but only routine administrative matters, not
negotiations, dispute resolution etc.
HUMAN RESOURCES Although there is evidence of some locally prepared As HRM, Training and Capacity Building process and
RECORDS/INFORMATION SYSTEMS lists (using Excel spreadsheets) with minimal personnel program developments proceed in this consultancy,
(HRIS) data, there is an absence of any Human Resources assess relevant information processing, data, and
Information System(s). reporting needs for reconciliation into the wider
information systems being worked on by IT

component of this consultancy.
In conjunction with this IT component reconcile
relevant and available software to support HRM
processes.
5. BENCHMARKING PROCESS AND STANDARDS
5.1. REVIEW OF NATIONAL BEST PRACTISES

The national benchmarks presented here relate to the relevant areas addressed and actions proposed
w.r.t. the Assam Utilities
As regards strengthening of HR functions is concerned, it may be cited that Pre-Reforms, practically
all the State Utilities in India had very limited Personnel function covering staff establishment
matters such as transfers, leave records, seniority lists, promotion orders etc. However, with the
reforms unfolding in the various States and disaggregation of Utilities, HR professionals have been
inducted and HR is fast moving from transactional to more transformational role.
The function is generally headed at the level of Executive Director, such as in MSEDCL, NDPL.
Further, the HR sub functions are grouped into 3-4 and each of these sub functions is headed by a
team of 3-4 General Manager / Sr. Manager level executives. In BESCOM, the function is headed at
General Manager Level.
As regards Training norms, many utilities are currently adhering to: MoP/ GoI training norm for the
electricity sector (2004) viz.
Minimum period of 1 week annually for each employee
Minimum of 1.5% salary budget initially towards training function
Some practices for effective implementation of training, such as preparing a pool of internal resource
persons and put them through a Training of Trainers- ToT by organisations such as NDPL, which
currently has a pool of over 200 internal resource persons are being cited as a strategy to meet
targets for delivery of training courses.
Again, recommendations such as induction level training schemes for HR and training linked to roles
within the Utilities or career- linked training, such as from General Manger to Chief General Manager
have been found to be very effective development interventions in Organisations such as NTPC, NDPL
etc.
Utilities trends in India in HR activities are increasing the involvement of outsourcing. This
outsourcing can be either geographical or functional whereas the first one relates to franchising of full
areas and the second relates to outsourcing of specific activities (functions) or services to external
companies. Outsourcing could become possibly one of the strategic actions for APDCL to address the
scenario where significant number of employees would retire in the next 5-6 years as well as to
rationalize manpower.
Some examples of the outsourcing practices in Distribution Utilities in India are as follows:
MSEDCL Practices:
Preventive Maintenance of Distribution Transformers (DTR) is outsourced to Agency, under
the direct supervision of Jr. Engineer in charge, by some of the utilities. The checklist and the
plan for carrying out the preventive Maintenance is given by the Utility.
Bill distribution is outsourced by practically by all the utilities.
Bill printing by some Utilities (MSEDCL) is also outsourced. Normally under this, transferring
of printable file to bill printer (for printing) takes place and the printer transfers all the printed
bills to the bill distributor.
Cash/Cheque collection through outsourcing by way of ATM, direct debit facility, drop boxes
etc. in urban areas and Mobile cash collection vans for rural areas is another area that is
outsourced.
Facilities Management in corporate offices and field offices in urban areas.
Call centre operations- handling communication with the consumers, registering and tracking
consumer complaints.
Fuse call centre (at subdivision level) have a telephone attendant, one Lineman/ALM and
1ALM/Line helper team generally round the clock (for urban areas)-the Telephone Attendants
have been outsourced.
For various field O & M work, contract for supply of vehicles with drivers on 24 hours basis, is
given out on contract
Activities Outsourced at the subdivision level in NDPL:
Meter reading, collection van drivers;
Telephone operators for taking complaints;

All Unskilled and Semi-Skilled work like assets Lineman/line helper accompanying lineman, is
outsourced;
Data punching for billing
Regarding the staff quantity in the company and considering that most of the areas of concern are
located in the distribution company, the following chart provides a comparison of APDCL number of
customers per employee vis--vis some of its peers in India. It can be checked that current situation
is poor even compared to Indian utilities.
5.2. REVIEW OF INTERNATIONAL BEST PRACTISES

As it has been pointed out in other parts of this report, effective change in the area of HRM is based
on relevance and practicality of changes, taking into account resources and organisational readiness.
Accordingly, the benchmark information presented here is meant to: (a) provide directional ideas;
(b) lend some credibility to the directions inherent in some of the HRM recommendations of this
consultancy and (c) serve as a useful guide to the three utilities as they embark on HRM change.
The information provided here is based on two landmark reports of The Conference Board of Canada,
the foremost independent, not-for-profit applied research organisation in Canada.
5.2.1. VALUING YOUR TALENT (HUMAN RESOURCES TRENDS AND METRICS) 2010
[Results based on 167 responses to a national survey of Canadian HR leaders in public and private
organisations]
a) Some general trends:

77% (79% private/74% public) reported that HR is more influential than on the previous 5
years.
Most respondents believe that HR is a strategic function, and some organisations are
beginning to carry out robust workforce planning and use metrics and analytics to make
linkages to business outcomes.
81% of heads of corporations (CEOs) deem workforce issues as business issues.
72 % of most senior HR leaders in organisations report to the CEO.
88 % reported that their organisations HR strategy is aligned with and supports corporate
strategies and objectives.
b) HR staffing ratios reported:

Although this benchmark can vary according to the size of organisations (i.e. with the influence of an
economies of scale factor), degree of automation, geographic (i.e. extent of geographical dispersion),
sector etc., it is nevertheless universally accepted as a useful indicator.
AF MERCOS EMI - L
Organisations Typology HR staff
Organisations of employees 1.-2. R staff per employees

Organisations of 1, employees Mean average 1.1 R staff per 1 employees
edian 1.2)
Transportation and Utilities sector Mean average 2. R staff per 1 employees
edian 2.1)
Public sector overall Mean average 2.7 R staff per 1 employees
edian 2.2)
5.2.2. LEARNING AND DEVELOPMENT OUTLOOK2009

[Results based on 218 responses to a national survey of public and private organisations]
81 of organisations in had budgets for training learning and development TL) [i.e.
TLD part of corporate budgeting process]
Organisations on average spent 1. of payroll on TL in 28
5.2.3. INTERNATIONAL STANDARDS FOR STAFF QUANTITY IN DISTRIBUTION UTILITIES

According to the data in AF Mercados EMI, the following chart provides a wide picture of the number
of customers per employee in distribution utilities.
Table 18 Customers/Employee International Standards
Considering that APP is currently around 1 customers per employee, the comparison with
international standards shows that there is still much room for improvement.
6. GAPS IDENTIFICATION AND ANALYSIS

The gaps in both uman Resources Management and Training are a based on two considerations: a)
what was identified in the as-is analysis and reflected in I 1and ) the key concerns identified at
stakeholder meetings and interviews in anuary 211.
6.1. AS-IS ANALYSIS SUMMARY

Following is a synopsis of the gaps detected in the aforesaid report:
Organisational - structure issues: such as approval of distribution structure pending; absence
of certain functions ote: the revised structure has been approved since- in February 212).
Approval and implementation of recommendations on manpower (reflected in dual charge of

posts at senior levels, many gaps in the staffing of sanctioned posts).
No comprehensive plan in place to address retirement in the next 4-5 years (34% will retire
by 2016) and an analysis of the positions/skill -sets where there will be gaps.
Gaps in HR processes.
Need for attention to the policy linkage between HRM and budgeting (example manpower
budgets vis--vis utility budgets and plans).
Dual charge of posts at senior levels and many gaps in the staffing of sanctioned posts
Need for organised training function (training now very limited).
There is no systematic assessment of training needs; training plan or need based annual
agenda in place.
No career linked intervention and induction level training programs/schemes in place.
Limited training resources, nothing allocated so far in terms of budgets (except under
APDRP).
No systems in place for many aspects of accepted critical components or linkages between
training and other accepted critical components of, corporate training.
Common seniority cadre across the three utilities for senior executives.
Unmotivated staff-especially at field level, stagnation at lower executive levels.
6.2. KEY CONCERNS OF STAKEHOLDERS

Following is a synopsis of the findings during the meetings with the stakeholder:
In the context of impending retirements, there is a need to identify potential for outsourcing
in Distribution and manpower norms at the subdivision level to understand the extent of
requirements.
Need for enhanced training function (indicative areas being: new technologies and services
for customer care, Distribution loss reduction, energy audit, project management, and
consumer care).
Promotion policy and Reward system (attention to benchmarking utilities and consideration of
time bound promotions to SE level and performance based promotions beyond this level;
minimum 2 years service remaining before promotion to higher position; performance linked
financial incentives/variable pay).
Performance Management (road map for performance linked appraisal system and follow-
through process).
Strengthening of HR function; Creation of posts and recruitment at senior level for Legal
Section Recommendations and Comprehensive Final Action Plan
The action plan that follows takes into account and reconciles a number of inputs: national and
international benchmarks, gaps identification and analysis from Interim Report 1, stakeholder
consultations to-date and the assumptions from Interim Report 1. The reconciliation referred to
includes two important factors: (a) one of the assumptions in Interim Report 1 that it is critical for
both analyses and recommendations to be relevant, practical, and appropriately simple and that
there should be proper sequencing, taking into account the status quo versus end positions and (b)
with respect to stakeholder consultations, the concerns of stakeholders were generally consistent with
what the Consultants concluded from the as-is analysis and consequent gaps identification and
analysis.
7. RECOMMENDATIONS AND COMPREHENSIVE FINAL ACTION

PLAN
The action plan that follows takes into account and reconciles a number of inputs: national and
international benchmarks, gaps identification and analysis from Interim Report 1, stakeholder
consultations to-date and the assumptions from Interim Report 1. The reconciliation referred to
includes two important factors: (a) one of the assumptions in Interim Report 1 that it is critical for
both analyses and recommendations to be relevant, practical, and appropriately simple and that
there should be proper sequencing, taking into account the status quo versus end positions and (b)
with respect to stakeholder consultations, the concerns of stakeholders were generally consistent with
what the Consultants concluded from the as-is analysis and consequent gaps identification and
analysis.

7.1.1. SHORT TERM ACTIONS (QUICK WINS)
a) HR Steering Committee (HRSC)
This functional action is required to drive, facilitate and coordinate the numerous HRM, Training and
Capacity Building initiatives of this consultancy. Given the diversity and complexity of these
initiatives, and the fact that they involve/affect different organisational units and levels, it is essential
to have a committee that drives, facilitates and coordinates them. Additionally, the steering
committee will act as a focal point for the approval process for all initiatives.
As regards the expected impact of this action it can be said that the creation of a HRSC will provide a
focal point for all three utilities and follow-up process for the many HRM, Training and Capacity
Building initiatives essential to the achievement of the reform objectives of this consultancy. The
HRSC will not only positively impact the effectiveness of the change process for HRM, Training and
Capacity Building in the short run, but will serve the same purpose in the medium and long term as
well. The Consultants anticipate that this practical process will be helpful to the three entities in
bridging the gap between their recommendations and implementation, and ensure the on-going
momentum of HRM/Training development that will be required to enable the three utilities to
strategically manage their human resources long after the Consultants have left.
Proposed Roadmap for Establishing a HR Steering Committee (HRSC):
Develop and obtain approval for the terms of reference and modus operandi for the HRSC
(see Annex IX 1.6). Director PMU with assistance from The Consultant to facilitate approval
process.
Create a HRSC, including appointment of members Director PMU with assistance from The
Consultant to facilitate creation process.
Develop and commence execution of an overall HRSC communication plan that encompasses
the HRSC terms of reference/modus operandi, membership and on-going versions of HRSC
quarterly action plans:
o Should be an action in the first HRSC Quarterly Action Plan.
o Should thoroughly take into account a distribution to all those who need to know
(senior management, affected management, all stakeholders involved etc.)
HRSC develops and communicates its action plans for short term and medium term (see
Annex IX 1.5 HRSC Action Plans):
o The first task of the HRSC will be to develop the first Quarterly Action Plan.
o This Quarterly Action Plan should carefully involve the role and functions of the new
CGM HR for the Distribution Company (APDCL), in terms of HRSC and the HR change
process.
b) Enhancing the HR Functions

This functional action is required to establish the HRM organisation which, through consistent
feedback from the stakeholders of this consultancy, combined with the conclusions of the National
and International HR Experts based on their as-is analysis, is acutely deficient. It is deficient in terms
of national and international best HRM and training practices, but more importantly in terms of what
is required to effect and sustain the reforms of this consultancy. The absence of requisite HRM and
Training processes and policies has serious consequences: preclusion of support that a contemporary
and professional HR and Training function can provide to the organisation and its leadership (support
to management as well as to staff).
As mentioned previously, the proposed roadmap for Training actions is covered in another section of
this report. However there is an integral relationship between the HR and training functions. For
example, there is a direct linkage between HR processes such as Human Resources Information
Systems, Manpower Planning and Performance Appraisal and Training.
As regards the expected impact of this action it can be said that enhancing the HR Function will
resolve the aforementioned gaps and related consequences.
Proposed Roadmap for Enhancing the HR Function:
HR Structure and Staffing based on the requirements and experience of similar utilities.
For APDCL, the staffing both at the corporate level and field level is covered [see Annex IX
1.2 Augmented HR and Training Organisation]
HRSC to obtain approval and sanction of structure and posts and implement the plans. This
includes:
Obtain CGM Distribution Professionally qualified through internal promotion or open
recruitment provided that he/she qualifies with the position specifications (Role definition and
specifications for CGM HR are at CGM Role at Annex IX 1.1Error! No se encuentra el
origen de la referencia.). As CGM has been proposed to be a member of the HRSC, one of
the foremost tasks of the Committee would be to recruit for this position.
Internal most qualified 1 GM/CGM Transmission; 1 GM/CGM Generation. For internal
candidates, laid out selection criteria and process to be met.
Other Executives: Internal, as per the specified criteria and selection process. If no suitable
candidates internally found, then consider recruitment from outside.
Consultants to spell out the selection process and required competencies for
recruitment/internal appointments.
Hire University MBA HR graduate.
Presentation of action plans and HR Orientation for HRSC. The Consultants participate as
much as possible and facilitate in conjunction with the Chairperson HRSC.
4
c) Development of an Enhanced Performance Appraisal System
This functional action is required to lay the groundwork for a performance-based organisation, one of
the key guiding HRM principles of interim Report 1. Based on the as-is analysis, combined with what
was gleaned from stakeholder consultations, the National and International HR Experts concluded
that attention needs to be paid to better defining performance parameters and to bring the process
more in line with national and international best practices.
There are many and varied theories on effective performance appraisal systems. Systems often fail
due to their cumbersomeness, inappropriate organisational readiness and inadequate training and
orientation of the participants in the system. In the as-is analysis the Consultants found that with the
existing system follow-up is unclear and it is deemed that there could be improvement in defining
what is being measured. Additionally, it is felt that, rather than introducing a totally new system, it
would be more stability to build on the existing system. In face of the foregoing it is felt that the most
helpful approach for the three entities at this point is to: (a) focus on the levels of Class I and II,
clarify and simplify the existing system and dovetail in practical and relevant performance criteria
(both in terms of key performance indicators as well as requisite skills and traits)
Accordingly, the following steps are recommended to commence development and progress towards
enhancing the performance appraisal system:
5
Proposed Roadmap for Developing Enhanced Performance Appraisal System :
Develop summary of the existing process:
o Audit records for class I and II appraisals [see Annex IX 1.8 Performance Appraisal]
o Summarise existing process [see Annex IX 1.8 Performance Appraisal]
Identify relevant performance criteria:
o Develop performance criteria for class I and II employees
o Reference best practices and the work of previous consultancies of the Technical
Assistance (TA) of ADB
o Obtain input from the three utilities.
Develop Performance Appraisal System for Class I and II Employees:
4
The development of the enhanced performance appraisal system should continue into the longer term
5
It has been recommended that the HRSC deal with Performance Appraisal up-front as a priority action item [see
Annex Error! No se encuentra el origen de la referencia.HRSC Action Plans]. This action would involve a
more thorough researching of the required process.
o Reference best practices and the work of previous consultancies of the Technical
Assistance (TA) of ADB
o Consult the three utilities
o Get Approval from the three utilities
o Include how affected Class I and II employees are to be communicated with, oriented
and trained in the proposed system (system and skills required for it).
d) Process for approving and updating of Organisation Charts and monitoring

and reporting for Sanctioned Posts
For effective Human Resources Management (HRM), and to enable effective HRM analysis and change
initiatives, it is imperative for all three utilities to have a clear process for approval of organisation
charts, the preparation of sanctioned post lists and the monitoring and reporting of same on an on-
going basis.
Proposed Roadmap for Organisation Charts and Sanctioned Posts:
Each utility to have a well defined approval and monitoring process for organisation charts
and sanctioning posts.
The process to designate: who will initiate the process and be the approving authority for the
same (BoD). Further, designate responsibility for distribution and communication of the charts
and sanctioned posts.
Designated functionary for each utility to be responsible for ensuring sanctioned post lists are
monitored on an on-going basis
Quarterly reporting to those who need to know regarding actual status vis--vis
sanctioned/budgeted posts.
To be dovetailed with Manpower planning system in the medium term.
e) Current Organisation Design All 3 Utilities

Pursuant to Action 4 above, and for the same reasons, the organization charts should reflect, as much
as possible (i.e. approved), organisational recommendations of this consultancy
Once the process for Organisation Charts and Sanctioned Posts is in place (per above) each utility
should prepare, on a priority basis, current organisation charts according to the following guidelines:
At least senior manager (SM) level and up.
Obtain input from this consultancy
Ensure appropriate approvals are obtained.
Ensure all affected managers are communicated to with respect to the final/approved
version.
f) Manpower Norms (Action applicable to Distribution utility only)

In response to one of the key concerns identified at the January 2011 stakeholder interviews, it is
recommended that the manpower requirements for Distribution be reviewed.
Proposed Roadmap for Distribution Manpower Norms
Review the manpower norms from NDPL and MSEDCL (see Annex IX 1.4):
o Review by relevant representatives of Distribution management and front line staff to
determine feasibility of NDPL norms.
Determine and recommend new norms for Distribution:
o Obtain requisite approvals for new norms.
o Implement new norms according to existing policy/process.
o Reconcile new norms into process recommended above for Organisation Charts and
Sanctioned Posts.
g) Outsourcing (Action applicable to Distribution utility only)

In response to one of the key concerns identified at the January 2011 stakeholder interviews, it is
recommended that the potential for new outsourcing be reviewed.
Proposed Roadmap for Outsourcing
Review the potential for new outsourcing in all three utilities (see Annex IX 1.7 HR
Outsourcing):
o Review by relevant representatives of Distribution management to determine
feasibility for new possibilities for outsourcing.
Determine and recommend new areas for outsourcing:
o Analyse feasibility of new outsourcing possibilities, taking into account cost-benefit
and applicable service conditions for employees to be replaced.
o Obtain requisite approvals for the new sources.
o Implement new norms according to existing policy/process.
o Reconcile new norms according to process recommended above for organisation
charts and sanctioned Posts.
h) Creation/Strengthening of Legal Section

In response to one of the concerns identified at the October 2010 and January 2011 stakeholder
interviews, it is recommended that each utility immediately have a Legal Section.
There is currently no legal functionary at senior level (except two lower level legal officers reporting
to CGM APDCL) and the Heads of HR have been assigned this role. There are also several court cases
pending at the field level It is vital to have professionally staffed Legal Sections for both Distribution
and Transmission Utilities. For APDCL: The legal wing with a role to provide: legal opinion on various
civil cases, labour matters, right of way, and commercial disputes. Also assist in drafting of
PPAs/tenders etc. from legal point of view.
There is a need to have legal support at the zone level. In MSEDCL-Maharashtra, there is legal officer
even at the Circle level.
Proposed Roadmap for establishing/strengthening legal function:
Gain agreement and approval for the required posts from the respective utilities.. Gain
approval of CMD.
Involve existing most senior HR manager in the selection process and have them
collaboration so doing.
Reconcile new hires into process recommended above for Organisation Charts and Sanctioned
Posts.

a) Enhancing the HR Functions
Conduct Training for New HR Executive Trainees. Conduct training for first batch of HR Executive
Trainees, [see Annex IX 1.10 Training New HR Staff]
In 2014, after disaggregation takes place, consider upgrading CCMs posts to Executive
Director/Director Personnel.
b) Develop Performance Appraisal System for Class III Employees. Human

Resources Information System (HRIS)
Over time in enhancing the HR function, especially in avoiding bureaucracy and improving
effectiveness both in terms of HRM and cost, it will be necessary to support processes with a human
resource information system in each utility. This is positioned as a medium-term goal as the
processes and improved HR staffing have yet to be developed.
Proposed Roadmap for Developing a Human Resources Information System (HRIS):
6
Develop a comprehensive list of information needs
o Develop an HR /Training survey tool and process (i.e. to collect all data)
o Develop for each utility a list of all HR and Training information needs, both in terms
of records and data required as well as processing and report requirements.
o In developing this list work closely with: (a) IT staff, (b) to the extent possible with
the IT experts of this consultancy and (c) with HRSC and those involved in
implementing processes being worked on by it.
Work in collaboration with IT staff to develop a HRIS that is compatible with other IT systems
c) Manpower Planning (MPP) System and Recruitment Plan

Manpower Planning (MPP) is a process wherein the organisation forecasts its staffing resources needs
in order to ensure that the necessary quantity and quality of people are available at a given time to
ensure the organisation is able to achieve its objectives. The MPP process, which has yet to be
developed, will also drive the recruiting function. Some specific recommendations have been made in
the action plan section of this report around some hiring (e.g.HR staff). However a full-fledged
recruitment plan, for other than known immediate needs, is contingent on the outputs of the
manpower processes covered in the roadmap below. Additionally, recruitment plans, to be
implemented effectively, will be contingent on the enhancement of the HR function covered elsewhere
7
in this report. Proposed Roadmap for Developing a Manpower Planning System (MPP) :
Develop a comprehensive list of MPP information needs:
o Internal existing data as applicable (skills inventory, age/service profiles, organisation
charts, incumbency data, succession data etc.)
o External data as applicable (labour supply information from governmental and non-
governmental sources.
8
Develop a MPP system :
o Utilise the information acquired as above.
o Identify information required but not available and develop strategies/means to get it.
o To determine vacancy position against sanction positions for each function; whether
various functions have the requisite capacity and skill base, to meet the (a) present
demands and (b) future needs, expressed as number and level of posts (if standard
manpower modules/defined norms for manning are available then based on it ,or else
based on best judgment/experience and benchmarks).
o Develop linkages to and reconcile all elements of MPP (strategic HR planning,
succession planning, skills inventory, performance appraisal, career development, job
descriptions, labour supply information, internal/external recruitment resources etc.)
o Identify gaps; consolidate plans for annual approval of manpower.
o Plan for filling the gaps-internally/ outside recruitment.
d) Preparation of the companies for - Retirement process

The following guidelines are provided for the development of a specific plan for the orderly
replacement of the retiring staff.
Establishing the current norms for key processes in APDCL.
While there are some existing workload norms for meter readers and bill clerks, substation O & M,
similar norms will need to be established.
6
The identification of information needs should be on going, given that many HRM process developments will
continue into the long term.
7
There is an inextricable link between the development of a MPP system and the development of an HRIS system
as described above.
8
New information needs will continue into the long run as elements/processes of MPP are developed.
While there are broad indicators like ratio of employees to customers; there are several other
considerations such as number of transformers; line length HT and LT; rural and urban circles-
density; geographical terrain; extent of automation etc.
To have a team of 2-3 Senior xecutives (from APDCL, HR) constituted under, to visit /study
two to three well performing DISCOMS and submit a report on the following:
o Manpower Norms
o Outsourcing Philosophy, areas outsourced and experience so far
Approval of norms and outsourcing philosophy by the APDCL Management
trapolate the internal data with the approved norms and areas to be outsourced and
determine the action plan.
Create continuous pipeline of talent through induction level trainee schemes determine the
number to be inducted. To quickest way to integrate the young ngineering graduates-is to
recruit them in batches of trainees and to put them through intensive training of 6 months
(structured on-the job and class room). The entire training itself can be outsourced to CNPD of
NDPL, NPTI, or PMI of NTPC
e) Automated attendance records (medium term)

Towards statutory obligations of maintaining accurate time records, system of punch cards is today
one of the most basic practices in organisations. The same is proposed for all employees in the three
utilities. Not only does it deliver accurate information on hours worked, overtime, etc without delays,
it also saves time and effort and eliminates HR admin overhead and reduces workload. Automatic
collation of shifts, holidays and leave information of employees make attendance process hassle free.
At field level, it makes staff allocation, Shift mgmt and overtime mgmt systematic and easy.
Currently, a number of reputed vendors for software (which is hardware independent such as
magnetic, biometric, RFID, barcode, etc.) and hardware are available.
After consultations with key stakeholders and in principle approval of Management, HRSC to evaluate
/determine the relevant software and hardware system, costs etc., for implementing the same.
f) Motivating Employees: Performance linked incentives; incentivize postings at

remote project sites; stagnation of career growth etc.
A multi pronged approach is recommended:
Performancebased financial incentives linked to performance standards are widely prevalent
amongst utilities in India. For example incentives linked to T D loss reduction, revenue
realisation, operational performance-system interruptions etc. for Distribution Utilities; and
PLF, plant availability, auxiliary consumption for Generation Utilities.
However, since baseline data, selection of parameters that are measureable and impact financial
performance, approval of Assam lectricity Regulatory Commission etc. have to carried out prior to
implementation of incentive schemes, this may require sometime before being implemented.
However, Non-financial Incentives for improvement can be considered in the short term, for example
linked to a. asset mgmt. b. Mtc. practices c. DTR failure.
The top Management of APDCL needs to examine ways to encourage CGMs for the three
nes in distribution (upper, lower, and central Assam) to locate themselves in their
respective areas for effectively managing their respective ones and for incentiving other
staff as well, located in remote locations.
Package of special facilities such as: Departmental vehicle to be provided to dependents of employees
for medical emergencies; hostel allowance for children; good quality housing; additional recreation
and welfare facilities.
stwhile G had problems of finding employees for Rajkot and Bhavnagar areas. They were
somewhat able to alleviate this by posting its employees to these areas on Promotion. Again for about
20% of posts for these areas that were to be filled by lateral entry, the internal candidates could
compete with external candidates and move on promotion if found suitable (in effect it was a fast
track promotion for posting to such places).
Again, hardship allowance for the subdivision staff in the Saurashtra area, where it was becoming
difficult to attract/retain good employees-either one increase in grade or 25 increase (of the
minimum of the pay scale) applicable to the concerned employees was implemented.
For primarily urban distribution zones/utilities, however, such as BESCOM (Bangalore/Karnataka) and
NDPL, etc. there are no such facilities/incentives.
Well-conceived internal Communications Program to build pride of their company has also
found to motivate the employees. New change lexicon and metaphors, as carried out by
NDPL also is found to be effective in this regard. Planned visits to well run utilities are often
known to energize and charge imagination of employees. Action in this regard is proposed for
the pilot at Jorhat.
Promotion Policy related aspects are addressed further in this section under long term
actions.
g) Development of an Enhanced Promotion System

Proposed Roadmap for Developing an Enhanced Promotion System:
Draft Promotion Policy paper outlining how transition will be achieved from promotions that
are based almost entirely on seniority to a policy which motivates and rewards performance,
ability and experience. Some directional principles are:
o A policy that is based on a mix of merit (as determined by the Performance Appraisal
System); and
o Fulfilling minimum length of service in the grade (specified as eligibility criteria).
Standard date of promotion-once a year.
Up until certain grades (say manager level) promotions not to be strictly on vacancies (subject to
meeting the eligibility criteria laid out in the policy). In some of the utilities, there are often up
gradation of posts, creation of more posts with new areas/growth etc.)
o Strengthening of target linked PAS
o Assessing the likely impact on manpower profile
Organise participatory forums of various stakeholders to get their inputs and buy-in

a) Enhancing the HR Functions
Hire HR Executive Trainees Hire second batch HR Executive Trainees [see Annex IX 1.3 Hiring
Augmented HR and Training Staff]
Conduct Training for New HR Executive Trainees. [See Annex IX 1.10 Training New HR Staff]
b) Development of an Enhanced Promotion System

Based on the activities carried out in the medium term, the promotion policy to be formalised,
subject to effective implementation of target linked performance based appraisals;
acceptance of out of turn (read seniority based) promotions by stakeholders
8. IMPLEMENTATION IMPERATIVES AND ENABLERS
8.1. HRSC
The HRSC will only be successful if the following requirements are met:
Earnest and on-going support, from the top down, of the HRSC terms of reference
Related to above, timely provision of the resource requirements to operationalize the HRSC
process, including: i) enabling of time required for all members to fulfil their roles in serving
on the committee and implementing action plans; ii) timely access to required information
and data; iii) office materials and secretarial support and iv) facility space.
8.1.1. ENHANCEMENT OF HR/TRAINING FUNCTIONS, DEVELOPMENT OF HR PROCESSES

AND SPECIFIC STAFFING RECOMMENDATIONS
For all of these action recommendations to be successfully acted upon the following will need to be
provided by the three utilities:
Timely provision of people, resources, facilities and funding as applicable

Timely approvals as required
Timely access to, and provision of, required information and data
General support to agreed-upon actions.

Initially the responsibility for the HRSC will be the approval by the three CMD/MDs and the Director
PMU of the HRSC terms of reference. From this point on implementation will flow from these terms of
reference, including especially responsibilities designated in the quarterly action plans.
With respect to implementation responsibilities involving enhancement of HR/Training functions,
development of HR processes and specific staffing recommendations, they will (as applicable) rest
with:
The responsibility protocols within the utilities
r
Responsibilities assigned within developmental action plans

With respect for HRSC the prime indicator for this action will be the official approval by the three
CMDs/MDs and the Director PMU of the terms of reference. From this point on performance indicators
and criteria will flow from the quarterly action plans.
With respect to enhancement of HR/Training functions and development of HR processes, the
indicator of success will be the timely achievement of the actions outlined elsewhere in the roadmaps
for each action. As indicated previously, quantifiable measurement criteria will not be available until
the HR processes (such as manpower planning) are in place.
With respect to specific staffing recommendations, the criteria for success will be as follows:
Approval of HR structure and staffing and implementation of staffing of key positions
New manpower norms have been approved for Distribution and have been appropriately
implemented,
New outsourcing areas have been approved for Distribution and have been appropriately
implemented.
Legal groups have been established /strengthened in each of the three utilities ( months
from approval of Interim Report 2)
V INFORMATION TECHNOLOGY
1. KEY OBJECTIVE OF AS-IS ANALYSIS

The objective of this assessment is to establish a baseline understanding of current IT
capabilities in relation to IT management best practices and industry leaders.
The identified gaps and issues found in ASB current state IT capabilities help clarify the areas in
which ASB could best focus resources to further optimire IT infrastructure and services.
This assessment provides a view into ss current IT capabilities across the business functions. tey
Objective of As-Is Analysis are as follows:
1. Determining the perceived value and efficacy of the current portfolio of IT Infrastructure
Services
2. Identifying the unmet information technology needs and barriers to effective use of IT
3. Learning how participants are currently using IT to support commercial, administrative and
technical processes of Generation, Transmission and Distribution utility
4. To identify any additional requirements of the utility for maximum utilization of IT

infrastructure wherever feasible for smooth operations and monitoring of processes in all
three units with an integrated approach on all fronts.
5. Discussion with ASEB on issues so as to arrive at the final IT Road Map for all the three units.
Approach adopted for the As-Is Study:
To perform this study, consulting team closely interacted with key ASEB personnel to gain a good
understanding of ASEBs major business problems and concerns, objectives of this project, corporate
philosophy and basic operating and maintenance practices. These meetings also allowed Consulting
Team to obtain a basic understanding of the design and configuration of IT infrastructure at different
utilities of ASEB.
During the meeting, Consulting Team gathered data needed to perform the analysis of ASEB current
practices and projected plans to determine the impact of the proposed initiatives on the current
practices. This data included normally collected information about IT philosophy, existing practices,
Trained Man Power, Organizational and Integration Issues, Implemented Systems already in
operation etc.
The approach adopted for this study involved gathering primary and secondary data pertaining to IT
assets currently in place at the various offices across five units of ASSAM State Electricity Board. In
addition, our approach also included assessment of the existing IT infrastructure and applications at
ASEB.
Performing an assessment of the current state by executing the following activities has done an in-
depth study:
High level review of current and future business strategy with Utilitys Senior
Management
Understanding of current IT infrastructure

o System and Business Applications, Database architecture and Technology
architecture
o IT organization, IT procurement & present IT Budget
Understanding the existing hardware and software, and classifying it on the basis of
scalability and compatibility with future system by analysing the features of the following
components:
o Networking Hardware: LAN, Switches, Routers and Cabling System.
o Servers & Workstations Hardware: Desktop PCs, Database Servers, GIS Servers,
Backup Servers, UPSs and Printers.
o Software Applications: Anti-Virus Software and Power CBS
(Metering/Billing/Collection/Pre Billing) and Energy Audit Applications.
Identify stakeholder expectations of the future systems.
The details of such primary and secondary methods used for data collection are given under:
Review of available Literature: Customer forms, Ledger sheets, DPR and other
documents.
The collection of literature in the form of MIS Reports, Strategy Documents, bills,
service forms (New Connection/Disconnection), Customer Ledgers, etc. gathered from
ASEB were carefully studied to identify key elements inside these forms for inclusion
in the As-Is Study report.
Stakeholder discussions:
Through structured interviews with the stakeholders critical questions related to the
As-Is study of the utility were addressed. Maximum use was made of the extensive
knowledge the stakeholders have due to their long-standing relationship with the
utility. These discussions were further supplemented with telephone conversations
when and where required and appropriate. The information obtained provided a
valuable input to this study.
The structured meetings which followed maximized the quality and quantity of the
information gathered.
Site Visits:
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution V-161
The As-Is study team visited utilities offices including its Head Office, circle office, and
collection Centre. These visits provided an opportunity to collect data at the facility
and component level of the utility. In addition to this it also provided a means for the
study team to interact with the utility personnel at various levels for better
understanding of the processes carried out by middle and lower management plus
catalogue daily field activities carried out by the field staff.
Reviews by our internal team of experts in the Power and IT sector.
Our internal team of experts has a wide range experience in both the power and IT
sector which has helped in providing useful insights to the report and has ensured
that the report has a holistic coverage.
A S
In this section, the main intention is to elaborate the main drivers/indicators/standards that each
utility should follow or be integral of the system for optimal performance or sustenance. This should
also elaborate on how consultant will measure and assess various performance parameters.
Fi re 19 - ing of ASBs governance
IT Governance specifies accountabilities for IT-related business outcomes and helps companies align
the IT investments with the business priorities. But IT governance is a mystery to key decision
makers in companies. The top performing companies carefully design governance and managers
throughout the enterprise make daily decisions putting design into practice.
IT governance is the decision rights and accountability framework for encouraging desirable
behaviours in the use of IT.
Benchmarking of IT metrics and monitoring of KPIs is a standard and structured approach used to
evaluate the outcome of IT activities, practices and process. The results provide insight into the
actions taken by management that both positively or negatively affect the performance of the
organization.
Figure 20 - Business value obtained from IT
Proposed Benchmarking Parameters, common for Generation, Transmission and Distribution Utilities
related to IT Infrastructure are as follows:
2.1. NETWORK DOWN TIME:

It refers to periods when a network system (LAN / WAN / Internet) is unavailable to the utility staff or
consumers for availing any service.
An operational network is a strategic business resource. It carries everyday messages and mission-
critical data, and makes communications possible between people and business processes. To many
people in the company it is probably invisible, an assumed utility like water or electricity. And like
those utilities, it becomes most visible when its not there.
What happens when the network is not available? A network outage can have a significant impact on
a corporations image and its customers. Employees cant get access to email, phones or critical
business applications. Business processes arent updated. And customers may look elsewhere for the
information they seek, or to place an order. On average, 3.6 percent of annual revenue is lost to
downtime in large businesses, according to a recent study. The negative consequences of a network
outage are more than financial. Decline in corporate image was the biggest concern of the
respondents in a survey, with loss of customers close behind.
It is interesting to note that companies with a more proactive or strategic approach spend a smaller
percentage of their budget just keeping things running (60 to 65 percent), compared to those with a
reactive or chaotic approach (75 to 80 percent). The lower rate may indicate a virtuous cycle of
benefit, as the companies working proactively continue to innovate and improve their IT operations
and outperform their reactive competitors.
Operations teams face many challenges to increasing network availability. Network equipment
downtime can come from planned maintenance activities, unplanned hardware or software failures, or
human error.
MCADOS I NDPL
Figure 21 - Sources of Network Device Downtime
2.2. APPLICATIONS DOWN TIME (IN HOURS): UNPLANNED APPLICATION

DOWNTIME CAUSES HAVOC AND GREAT EXPENSE
terprises should not let infrastructure redundancy provide a false sense of availability assurance. To
address the 80 percent of unplanned downtime caused by people and process failures vs. technology
failures or disasters, enterprises should invest in improving IT processes, such as change,
configuration and problem management; performance and capacity planning; application architecture
and design; and operator hiring and training. Investments should also be made in automation. Other
downtime causes should be addressed by eliminating single points of failure through redundancy,
with vendor service contracts and component monitoring
To reduce downtime caused by application failures, enterprises should invest in improving and re
engineering IT processes, including the following
Change management reduces unplanned downtime caused by inadeuate planning and
testing of application changes, enables a more proactive approach toward problem prevention
ee Note 3
Problem management improves problem identification, isolation and resolution, thereby
reducing time to repair;
Configuration management tracs the relationships between dependent application and
infrastructure components, enables better understanding of change impact and uicer fault
diagnosis;
Application architecture and design reduces single points of failure, aides in problem
isolation and maes application failures more transparent to users; and
Performance management and capacity planning proactively identifies current and future
resource shortages impact SLAs.
2.3. RECOVERY TIME OBJECTIVE - RTO

The Recovery Time Objective TO is the duration of time and a service level within which a business
process must be restored after a disaster or disrupti in order to avoid unacceptable consences
associated with a br in business continuity.
It includes the time for trying to fi the problem without a recovery, the recovery itself, tests and the
communication to the users. Decision time for users representative is not included.
The RTO is measured in seconds, minutes, hours, or days, and is an important consideration in
disaster recovery planning. Different business functions may have different recovery time objectives.
r ple, the recovery time objective for the payroll function may be two w, whereas the
recovery time objective for sales orders processing may be two days. Numerous studies have been
conducted in an attempt to determine the cost of downtime for various applications in enterprise
operations. These studies indicate that the cost depends on longterm and intangible effects as well
as on immediate, shortterm, or tangible factors. Once the RTO for an application has been defined,
administrators can decide which disaster recovery technologies are best suited to the situation
Assam Capacity Development of the Assam Power Sector tilities nal Report Distribution V164
For example, if the RTO for a given application is one hour, redundant data backup on external hard
drives may be the best solution. If the RTO is five days, then tape, recordable compact disk (CD-R),
or offsite storage on a remote Web server may be more practical.
RTOs are usually tiered by criticality. Youll need to look at your companys unique requirements as to
how many tiers are appropriate for your organizationmore than five generally becomes
unmanageable. Examples of five RTO tiers might be:
Table 19 - Examples of RTO tiers
Tier
Description
No.
Tier 1 Fault tolerant with virtually no impact to the end user if the system goes down.
Replication is part of the design of the system/application and usually requires Tier A
RPO
Tier 2 RTO of less than 24 hours. Requires hot standby equipment and usually a Tier B RPO.
Tier 3 RTO of less than 48 hours. Test and development equipment takes on a production
role in the event of a disaster. This usually only applies when a company has a second
data centre with production running at one site, and test and development running at
the other
Tier 4 RTO of two to seven days. Includes lower priority applications than tiers2 and 3.
Supporting hardware can be either remaining capacity at a second data centre or
hardware available via drop ship arrangements with a third-party vendor
Tier 5 RTO of more than seven days. Requires acquisition of hardware and restoration of
systems
Organizations determine RPOs based on the amount of data or transactions that they can afford to
lose. Possible RPO tiers include:
Table 20 - Possible RTO tiers
Tier
Description
No.
Tier A No data loss
Tier B RPO of less than 24 hours
Tier C RPO of last backup (2436 hours in most cases)
2.4. RECOVERY POINT OBJECTIVE RPO

The recovery point objective (RPO) is the maximum acceptable level of data loss following an
unplanned event, like a disaster (natural or man-made), act of crime or terrorism, or any other
business or technical disruption that could cause such data loss. The RPO represents the point in
time, prior to such an event or incident, to which lost data can be recovered (given the most recent
backup copy of the data).
RPO and RTO targets are a key step towards defining the organizations risk appetite and
requirements for a business continuity plan.
RPO and RTO allow IT to convince senior management of the need for recovery spending by
using quantifiable targets set by the business as a basis for such spend.
RPO and RTO help you in selecting the appropriate recovery technologies. They define the
range of what is possible in terms of recovery technologies and processes.
In doing this, RPO and RTO help achieve the right balance between meeting business
objectives, yet not overspending on technology to meet goals that were never actually set.
RPO and RTO figures facilitate the testing and audit of a business contingency and disaster
recovery plan by providing a benchmark for measuring results, and by constituting the basis
for a data recovery service level agreement (SLA).
As such RPO and RTO are key metrics for measuring recovery time and data characteristics. Other
supplementary metrics include:
Recovery Time Granularity (RTG) determines the time spacing between recovery points;
whereas RPO is the last recovery point prior to a failure, RTG defines recovery point selection
options prior to that recovery point.
Recovery Object Granularity (ROG) expresses the level of objects that a recovery solution is
capable of recovering. For instance, object granularity may be a storage volume, a file
system, a database table, a database row / column / field, a transaction, a mailbox, an email
message, etc.
Recovery Event Granularity (REG) measures the ability of a recovery solution to track events
and to recover an application or data to a specific event.
Recovery Consistency Characteristics (RCC) measures the usability of recovered data by the
associated application.
Recovery Location Scope (RLS) defines where the protected data must be stored when
recovery takes place (i.e., locally, remotely, on which media / storage tier).
Recovery Service Scalability (RSS) measures the number of applications or data sets the
recovery solution handles, and the maximum size of the data it can store.
The Maintenance Point Objective (MPO) describes the maximum allowable window for the
performing scheduled system maintenance
Deploying RPO and RTO targets, including supporting metrics, can be done in any of the following
circumstances:
An immature of non-existent business recovery strategy and architecture is in place
Basic backup and recovery processes and technologies are in place, but these have been
deployed over time without regard to formal business requirements (i.e., these were IT-
driven)
A formal process and capability for BCP is in place, and RPO / RTO definition is one of the final
stages of process maturity.
In the first situation as in ASEB, RPO and RTO target deployment goes part and parcel with deploying
a full BCP capability. Depending upon the size and complexity of the organization, that deployment
can take from a number of months to over a year
2.5. IT USER SATISFACTION INDEX

IT customer satisfaction surveys help to eliminate recurring and other problems, and enable IT to
anticipate and address problems before they become significant. This reduces the number of IT
service incidents which in turn, reduces the number of in-house and/or outsourced people required to
provide IT customer service.
MERCADOS EMI - NDPL
Figure 22 - Benefits obtained from IT customer satisfaction surveys
IT Survey/IT Help Desk survey ratings provide a clear indication of current and on-going levels of IT
performance and IT user satisfaction/IT customer satisfaction. Verbatim comments and suggestions
provide critical actionable information and insight for achieving breakthrough results
IT Survey/IT Help Desk Survey performance metrics include the following and other service and
performance criteria, depending on the type of survey being conducted:
Ease and time required to contact IT/IT Help Desk with inquiries and to report problems
Timeliness of IT problem resolution,
Courtesy and attitude of IT/IT Help Desk staff
owledge of IT customers environment and other pertinent IT user issues
Communications effectiveness
llow-up to ensure satisfactory resolution
IT customers awareness of SLAs (IT service level agreements), service channels, and
service policies
Effectiveness of individual IT and IT Help Desk staff and teams
Satisfaction levels of IT customers/IT users sorted by IT user location, IT user business unit
and other IT user demographics
Effectiveness of systems developed
Intranet uptime/Internet uptime
Web site effectiveness
2.6. IT STANDARDS
ASEB Utilities shall adopt various ISO Standards for maximum utilization of IT Infrastructure and
skilled resources and providing the secure working environment. Some of the basic standards are as
follows:
2.6.1. ISO 9001:2005

ISO 1: specifies requirements for a quality management system where an organization
needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements, and
Aims to enhance customer satisfaction through the effective application of the system,
including processes for continual improvement of the system and the assurance of
conformity to customer and applicable regulatory requirements.
Assam: Capacity Development of the Assam Power Sector Utilities nal Report Distribution V-
All requirements of this International Standard are generic and are intended to be applicable to all
organizations, regardless of type, size and product provided
2.6.2. ISO 27001: 2005 (INFORMATION SECURITY MANAGEMENT SYSTEM)

Most organizations have a number of information security controls. Without an ISMS however, the
controls tend to be somewhat disorganized and disjointed, having been implemented often as point
solutions to specific situations or simply as a matter of convention. Maturity models typically refer to
this stage as ad hoc. The security controls in operation typically address certain aspects of IT or
data security, specifically, leaving non-IT information assets (such as paperwork and proprietary
knowledge) less well protected on the whole. Business continuity planning and physical security, for
examples, may be managed quite independently of IT or information security while uman Resources
practices may make little reference to the need to define and assign information security roles and
responsibilities throughout the organization.
ISO 27001 2005 is the de-facto international standard on establishing, maintaining and improving an
Information Security Management System (ISMS) for both public and private sector organisations.
Standard is designed to:
Identify an organisations information assets
Identify the threats to those assets
Identify the vulnerabilities that might be exploited by those threats
Identify the impact on an organisation if the loss of confidentiality, integrity or availability
(CIA) of any asset was to occur
Why compliance is important for business or service benefit
By having formal documented ISMS which has been independently assessed, an Organization
can demonstrate to its customers and clients that they are committed to security, and have
the ability to handle information in a secure manner.
This in turn may negate the need for their customers to spend time and allocate resources in
carrying out their own independent audits. Equally customer confidence can improve, thereby
increasing trust in your brand or image.
There may also be contractual or service level requirements that an organization works in
accordance with ISO 27001.
In respect to public sector bodies, there is a requirement for government bodies to have their
critical systems compliant and for other public organizations; the government are persuading
them to become compliant.
The ability to respond quickly to any information security breaches or incidents is one of the
key clauses in ISO27001. The ability to minimize the opportunity to incidents to occur is a
major advantage for business/service resilience. It also links closely with IT Disaster and
Business Continuity work.
2.7. POWER USAGE EFFECTIVENESS (PUE)

Energy efficiency is rapidly becoming a key data centre issue. The more energy efficient the data
centre, the lower the on going operating costs for facilities users. Power usage effectiveness (PUE) is
a metric used to determine the energy efficiency of a Data Centre. PUE is determined by dividing the
amount of power entering a data centre by the power used to run the computer infrastructure within
it. PUE is therefore expressed as a ratio, with overall efficiency improving as the quotient decreases
toward 1. Members of the Green Grid, an industry group focused on data centre energy efficiency,
created PUE.
Data centre infrastructure efficiency (DCIE) is the reciprocal of PUE and is expressed as a percentage
that improves as it approaches 100
Figure 23 - Power usage effectiveness
The PUE can range from 1 to infinity. In the case of the PUE, data centre energy efficiency increases
the closer the number comes to one which indicates that a greater portion of the power required by
the facility is used to drive the IT equipment.
For example, a PUE score of 3 indicates that the data centre demand is three times greater than the
energy necessary to power the IT equipment.
2.8. EMPLOYEES / DESKTOPS RATIO

This ratio shall be monitored for each of the five utilities of ASEB. Ratio shows the awareness and
penetration of IT systems in the organization. As the ratio improves it shows that more operations are
being done in computers and more and more employees are working on the systems.
3. AS-IS ANALYSIS
3.1. INVENTORY
Automatic Meter Reading (AMR): Three distribution utilities do not have AMR system in
place both at Server end ad at Consumer Premise. There is no AMR Modems installed for
any type of connections whether it is HT, Selected LT or DT. There is no AMR system at
Import-Export point also.
Utility is using Servers at each Sub-Vision Office for Billing and Energy Audit purpose.
Servers make are HP or ACER. Server Configuration are as follows:
Table 21 - Server configurations
Sl. Parameters Specification
1 PROCESSOR Intel XEON Dual CPU

MOTHER BOARD latest suitable Mother Board
2 PROCESSOR SPEED 2.8 GHZ
3 MEMORY 1 GBRAM DDR with ECC
4 STORAGE (Hard Disks) INTERNAL

36 GB HS/NHS Ultra 320 wide SCSI HDD (1000 rpm)
Seagate (2 nos.)
5 NETWORK 100/1000 Mbps Ethernet PCI Card.
Sl. Parameters Specification
8 DISK DRIVE 52X IDE internal CDROM. Samsung or LG.
9 OPERATING SYSTEM Microsoft Win Server 2003, Standard Edition, SP 2.
APDCL Utilities does not have any storage and backup system. They are taking backup on
a client PC and Compact Drives.
There is no specialized hardware equipments installed for handling the customer calls at
Customer Care Offices.
Spot Billing Machines are not used in APDCL. The SBM was used sometime back for few
consumers as a pilot project but not replicated for other users.
UPS and Battery System in the utilities are not in place as required, but found majorly in
use in Head Offices and Cash Collection Centre. UPS in use are of 500 VA, 1 kVA and 2
kVA and of Uniline, APC and Numeric make.
APDCL does not have any effective and up to date security mechanism for its current IT
Infrastructure.
Desktop Machines are there limited offices of all the five utilities. General Configuration of
the desktop machines are as follows
o Desktop Make : HP, DELL, HCL, Compaq, LG
o Operating System : MS Windows XP professional
o Processor : Intel Pentium IV or AMD Athelon, 2.80 GHz
o RAM : 256 MB DDR, 512 MB, 2 GB, 4 GB
o Monitor : 15 Colour Monitor
Printers are there in limited offices of all the five utilities. Configuration of the Printers are
as follows:
Table 22 - Printers configuration
Printer name Model Number
HP (Printer Copier, HP C4288 All In One Printer

Scanner)
HP (DeskJet) HP 5438
TVS MSP 330
Lipi T6050
Dot Matrix Printers MSt-240 Classic
3.2. APPLICATIONS
Revenue Management System in Distribution Utilities: Under APDRP Power Distribution
Utilities of ASSAM has implemented billing engine named Power CBS, which was developed by
M/s CMC Ltd. Implementation went on between 2001 and 2006. AMTRON (Assam
governments electronic and IT wing) has helped APDCL to implement this system at each
subdivision of state. Power CBS is a Billing Cycle System, designed on two tier architecture.
Backend is Oracle database (different version at different sub divisions) and front end is Java.
o Apart from Power CBS, a separate pilot-billing engine was rolled out in one
subdivision i.e. at Jalkwadi subdivision of GEC 2 circle. This pilot-billing engine is
based on Java Oracle and runs on Linux operating system.
Geographical Information System (GIS): There is no consumer indexing done and no GIS
system in place for Asset Mapping and Connection tracking.
Mail / Messaging System: APDCLs utilities do not have any Mail / Messaging System in place
and they are currently dependent on public email systems like gmail.com or yahoo.com etc.
EMS / NMS: ASEBs utilities do not have any Enterprise Management System or Network
Management System in place.
Asset and Maintenance Management : APDCL does not have any application for the Asset and
Maintenance Management in any of the Utilities
Management Information System: Normally MIS are being generated manually using MS
Excel or basic level reports are extracted from CBS and Energy Audit System. There is no
utility level or enterprise level MIS system for Management and different level of offices for
monitoring the work progress.
Website :Utilities has different website and URL of the websites are as follows:
o www.laedcl.gov.in (Lower Assam - Distribution)
o www.caedcl.gov.in (Central Assam - Distribution)
o www.uaedcl.gov.in (Upper Assam - Distribution)
Only one circle, GEC1, has website with URL: www.mybijulibill.com. This site is only for
consumers of GEC1 circle which has facility to see previous bill, pay online etc. The web
server is kept in GEC1 circle and is being maintained by IT person, posted in circle.
Currently there is no IT system to monitor and control financial and HR transaction in any of
the utilities of ASEB
There is no ERP, SACADA, GIS, Plant maintenance or messaging system in Generation

organization.
SCADA system is implemented in Transmission organization but is not being used in fullest
capacity.
3.3. NETWORK CONNECTIVITY

APDCL has one Network Switch per Office Currently. The entire setup in the office is
connected in a LAN through a switch. Configuration of the Switch is as follows:
o HCL 2420GT Win Smart Gigabit Ethernet Switch with 24 Nos. 10/100/1000 Mbps
ports
o Dlink make with 24 Nos. 10/100/1000 Mbps ports
APDCL Utilities does not have any Router Installed in any Office.
For communication purpose, ASEB Offices are not equipped with any IP Phones or IP PBX
equipments.
APDCL currently does not have any VPN/MPLS network. There LAN is also isolated with no
external connectivity
LAN Connectivity is provided using the CAT 5 Cabling within the offices of Utilities
3.4. DATA CENTRE INFRASTRUCTURE

Currently there is no Data Centre or Disaster Recovery Centre Infrastructure available in any of the
utilities of ASEB.
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution V-
4. BENCHMARKING PROCESS AND STANDARDS (REVIEW OF

NATIONAL AND INTERNATIONAL BEST PRACTICES)
4.1. REFORM PROCESS AN AGENT FOR TRANSFORMATION

It is clear that some fundamental changes are required in the working of the power sector entities to
realise the vision of reliable, affordable and quality power for all by 2012. Several states have
undertaken reforms process under the overall guidance of MoP and are aimed at bringing about
sustainable improvements in the operations of the utilities and making them viable businesses. The
on-going reforms have improved operating structures, commercial orientation, transparency in
operations and overall customer orientation. The key initiatives that enabled these changes include:
Unbundling of integrated entities into generation, transmission and distribution corporate
Setting up of independent authorities to regulate the sector
Campaigns to enhance revenues, reduce losses, improve maintenance of networks and
enhance customer services
Substantial investments to enhance the quality of networks
However, there has been limited success in institutionalising these changes and sustaining the
improvements over a period of time. The need of the hour therefore is to institutionalize the changes
and bring about sustainable and pervasive improvements. This requires improving the operational
processes by leveraging best practices and best-of-breed technologies.
While these best practices can be observed in utilities across the regions, there is tremendous
diversity found in the IT application landscape, infrastructure used business models, etc. The global IT
market for the power sector provides a wide range of technologies and solutions. These solutions
address the entire business value chain in power utility from setting up generation capacity,
transmission and distribution network and service connection to distribution load management,
delivery of power and customer facing processes. These IT solutions serve diverse regulatory market
models ranging from monopoly markets to highly competitive ones. The range of IT products serves a
wide range of organisation sizes from small utilities to global energy majors. Overall, the IT
products market is an evolved one, if not the most evolved as compared to sectors such as financial
services or manufacturing. There is a large share of custom developed IT solutions also in use,
primarily in business applications and very little in IT Infrastructure.
4.2. IT INFRASTRUCTURE IN THE POWER DISTRIBUTION UTILITIES OF INDIA

The operations in the power distribution utilities of India are characterized by manual and
cumbersome processes, inadequate controls, insufficient commercial focus, limited transparency and
lack of reliable information Manual and cumbersome processes, inadequate controls, insufficient
commercial focus, limited transparency and lack of reliable information characterize the operations in
the power distribution utilities of India. As a result, the operations are highly inefficient with
substantial revenue leakages and poor customer orientation. The use of IT has been low and in
pockets. The several standalone applications have limited ability to effectively interface and integrate
either with other applications or with potential applications to be deployed in the future. Although the
level of deployment of IT varies significantly across the utilities, the key applications have been in
multilevel aggregation of data or large-scale data processing.
Though the state of IT adoption is low, there are a number of instances of IT adoption. Major
organisations including SEBs have considered IT and have made some use of it. The following table
provides an illustrative list of IT deployment in the distribution business.
4.2.1. BEST PRACTICES ADOPTED BY INDIAN UTILITIES FOR AT & C LOSS REDUCTION
Sr. Utilities
Best Practices
No Key Description Benefit from the Practice Adopted in
of IT Usage
. India
1 S Mapping ographic Information System consists of a system for, storing, 1. Fast release of New Connection NDPL, Andhra
and Integrating
S with other
checking, integrating, manipulating, analysing and displaying geo
data related to positions on the Earths surface and data related to
2. tter tracking of defaulters Pradesh Discos
iness attributes of the entities/Customers in a utility area. It pertains to

Processes both vector and raster IS. The use of capabilities includes
hardware, software and data, provided by a eographic Information
System specific to a set of user requirements.
2 Spot lling Spot billing is a revolutionary solution devised with an intention to 1. Reduction in Operational Cost Andhra Pradesh
enable the power distribution utilities to streamline and implement Discos, NDPL
2. Improvement in Collection
an effective metering and billing system, improve cash flows and to
Efficiency
make the processes customer centric.
3. Reduction in complaints related
There are two kinds of spot billing technologies Off-line and On-
to billing or bill distribution
line. In on-line Spot billing wherein the readings/ billing information
is directly sent from the site to the server through PRS Technology 4. Environment Friendly
and the bill is instantly printed and delivered to the consumer. In
case of offline spot billing technology, the meter reader has to
synchronize the billing information at the server location subsequent
to the reading, printing and delivering the bill to consumer.
3 Automated The main objective is to acquire meter data from system and Provide accurate information Andhra Pradesh
Meter Reading selected consumer meters automatically from remote avoiding any for decision support, Discos, NDPL,
(AMR) human intervention, Monitor important distribution parameters, use performance monitoring, etc. CESC Limited (up
Improves the illing Accuracy
meter data for accurate billing purposes and generate exceptions to Transformer

and MIS reports for proper planning, monitoring, decision support Level)
and Reduce the time Lag
and taking corrective actions on the business activities by the
tween Reading Date and
management
lling Date
Helps in detecting theft and
Meter defects without site
visits and manual intervention
Sr. Utilities
Best Practices
of IT Usage
. India
4 Billing and This application provides a high quality experience for the customers 1. Transparency NDPL, BSES
Collection and business associates that will provide them a user friendly portal (DELHI)
2. Easy availability of information
Information on that will make it easy for them to communicate with the utility
the Utility through the web instead of direct phone calls or visits. This portal Enhancement in Consumer
bsite will also act as a source of information for the customers regarding Satisfaction
policies and procedures. This in turn will improve customer
satisfaction and reduce work load on the employees
5 On-line The system provide different payment and information channels to 1. Better service for the premier NDPL
Collection for customers and own staff to improve customer convenience for customer
depositing bills payments and enable collections for the energy billed, and a shorter
2. Less crowd in the Cash
at any counter metering-bill billing-collections (MBC) trade cycle
collection offices
Environment Friendly
Collection It provides the facility to take payment of energy bills from 1. Better Collection Efficiency NDPL, BSES
through ATPM consumers round the clock. It accepts cash/Cheque/Demand (DELHI), DGCL
2. Less crowd in the Cash
Machines Draft/Pay Order, issues an acknowledgement on every payment (Gujarat),
collection offices
made and is a touch screen and multimedia-based system. hen Andhra Pradesh
the Customer places the voucher/bill in the designated slot under
the barcode scanner, the ATP will automatically get started. Suitable
prompts are provided for guidance
ality Development of ISO Procedures, ork Instructions, Risk 1. Standardiation of procedures NDPL, CESC
Management Management, Security Management etc. and working as per the Limited (Six
2. Easier to identify the gaps and
through ISO / defined procedures. Sigma)
improvement areas
M
Better monitoring and better
output.
8 Supervisory As a minimum, the SCADA functionality includes continuous 1. Significantly reduce operating Andhra Pradesh
Control and monitoring of the status and performance of all power system labour costs Discos, NDPL
Data Acquisition apparatus located in the grid substations from a central location (the
2. Improve plant or regional
System Control Centre). SCADA functionality also includes support for
system performance and
remote control of substation devices, including transmission
reliability
switchgear, load tap changer (LTC) transformers, substation
Sr. Utilities
Best Practices
of IT Usage
. India
capacitor banks, and feeder circuit breakers
9 Management This application covers 1. Increases organisational Andhra Pradesh

Information control Discos, NDPL
Maintenance and generation of various management information
Systems (MIS)
reports required for top management, middle level management and 2. Generates new evidence in
respective unit Offices. These are generally based on the data support of a decision
generated under different other packages covered in this section.
3. Creates a competitive
The MIS Module should include: advantage over competition
Information capturing 4. Encourages exploration and
discovery on the part of the
Information processing
decision maker
Information management
5. Reveals new approaches to
Information based decision-making and reporting. thinking about the problem
space
6. Helps automate the Managerial
processes.
10 Centralised Call The system is normally used to improve the customer service by Reduction in time taken to resolve Andhra Pradesh
Centres processing and resolving Customer requests/queries/complaints in the consumer complaints. Discos, NDPL,
minimum possible time by taking up it at appropriate place and CESC Limited
Centralised and effective manner
level.
for logging and monitoring the
consumer issues
11 Energy Monitor important distribution parameters, capture hierarchical view Provide information on the area of NDPL, arnataka
Accounting and of energy accounting, Network assets of power distribution utilities, concern like which area is more (BESCM)
Auditing intelligent analysis tools for plugging loop holes and identifying prone to T & D Losses
System revenue leakage, adding into perform network planning and
Provide specific information on
management activities, calculate / identify technical and commercial
category of consumers where
losses at any point in the network
losses are high
12 SMS Services Application provides provision to send the SMS alerts to consumers lps in instant informing the NDPL
for Consumers on certain predefined events to inform the consumers about the consumers about their commercial
progress of their requests and also to inform on the billing and transactions, keep them updated
AF MCOS EMI -
Sr. Utilities
Best Practices
of IT Usage
. India
payment information. Some of the vents are: about the processing of requests,
etc.
Bills generation,
Increase the consumer
Payment reminders,
satisfaction level and trust on the
Payment acknowledgement, Utility processes
sconnection Order eneration

mand Note eneration, etc.
cument cument management solution is a computer system used to track duce Storage of Physical Files
Management and store electronic documents andor images of paper documents
Easy and Fleible etrieving
System provide storage, versioning, metadata, security, as well as Indeing
and retrieval capabilities. Its also termed as document management Controlled and Improved
software or document management tool. cument stribution
Assam: Capacity evelopment of the Assam Power Sector Utilities Final eport stribution -
4.3. REVIEW OF INTERNATIONAL BEST PRACTISES

ON OF BUSINESS AND IT STRATEGY
Information technology investments and implementation is driven through a structured and
comprehensive IT strategy and IT plans. The IT strategy is aligned with the business strategy
taking into account changing business needs and emerging technology trends. While the IT
implementation plan is phased taking considering priorities and business benefits, the interfaces
and integration between different applications is well established and predefined. The business
direction and IT direction drive each other. A synergy is established to maximise benefits from IT
investments and to best serve the business needs. A business case is established for every IT
investment. Effectiveness of IT investments is monitored on an on-going basis.
4.3.2. IT AS THE OPERATIONS EXECUTION PLATFORM

Operations are enabled by IT and technology is deployed to conduct transactions. This provides
the inbuilt benefits of workflow enabled transactions and single point of data capture. It
minimizes transaction time, enables built-in process controls, enables audit trail, and provides
appropriate and reliable information for decision support. The level of manual entry and processes
are optimised to maximise benefits from IT. Information needs are inbuilt and people could focus
on analysis to provide strategic decision support.
4.3.3. INTEGRATED SYSTEMS OVER A ROBUST IT INFRASTRUCTURE

The IT applications are well integrated to achieve high level of business process integration. This
accelerates business transactions and optimises sharing of information across business processes
leading to better decision-making.
4.3.4. BEST-OF-BREED SOLUTIONS

While packaged applications are the norm in support functions, custom-built applications are
more prevalent in core functions. There is increasing use of best-of-breed solutions and increasing
shift towards off-the-shelf packaged solutions. Packaged applications have provided reduced time
to market at reduced cost and with industrys best practices providing assured results. Greater
investments by vendors to continuously upgrade solutions anticipating change in business
requirements and evolving industry structures have made the packaged solutions increasingly
popular across functions.
4.3.5. WELL-DEFINED IT ORGANISATION

IT is a large and important entity at global utilities. Usually there is a CIO or a similar executive
reporting directly to the CEO who is responsible for the effective performance of the
organisatis IT assets.
4.3.6. OUTSOURCING
There are strong trends around the globe to outsource IT infrastructure, management of IT
operations, and even business processes
4.3.7. CASE STUDY: PPL POWER SELECTS GE ENERGY'S POWERON SOLUTION FOR
ENTERPRISE OUTAGE MANAGEMENT SYSTEM
ATLANTA, GEORGIA - PPL Electric Utilities, a division of PPL Corporation, has selected GE Eners
PowerO product suite as the enterprise outage management system (OMS) for its electric division,
replacing an internally-developed program that has served the company for 30 years.
In addition to the base outage package, the PowerOn suite includes several applications including
PowerOn Dispatc reliability reporting and a trouble call application. GE Eners outage
management product will provide integration with two other key enterprise applications systems,
PPLs ESRI Geodatabase and TWACS Automated Meter Reading System.
The PowerO suite will be integrated with other PPL applications such as IVR, CIS, work
management, AMR and PPLs energy management system. The proect started in December 200 and
is scheduled to go live in the second quarter of 200.
MERCOS EMI - L
PL recognied the ease and value of GE Energys PowerOn outage management product to integrate
with other existing enterprise systems, said an eintelman, president of GE Eners services
business. The proven performance, scalability and reliability of the GE PowerOn solution is mission
critical to utilities such as PPL during the restoration process for any event.
PPL Electric Utilities (PPL) is an investor-owned electric utility, with headquarters in Allentown; Penn.
PPL provides electric service to approximately 1. million homes and businesses throughout a 10,000
square-mile area in 29 counties of Central and Eastern Pennsylvania. Principal cities in the PPL service
area include Allentown, Bethlehem, arrisburg, eton, Lancaster, Scranton, Wilkes-Barre and
Williamsport.
5. GAPS IDENTIFICATION AND ANALYSIS
5.1. GENERAL OVERVIEW OF IT GAPS

Manual and cumbersome processes, inadequate controls, insufficient commercial focus, limited
transparency and lack of reliable information characterie the operations in the power utilities of
ASSAM. As a result, the operations are highly inefficient with substantial revenue leakages and poor
customer orientation. The use of IT has been low and in pockets. The several standalone applications
have limited ability to effectively interface and integrate either with other applications or with
potential applications to be deployed in the future.
An observation across the organisations is that the approach towards IT has been piecemeal with
standalone applications deployed for a limited operational requirement. IT has been used only as a
tool to address a specific issue or two at a time without a long term or holistic strategy. This approach
has resulted in issues such as:
Standalone systems Coverage to limited geographical areas
Systems in place are largely aggregators or processing tools
Basic transactions are still manual without inbuilt controls
Limited integration of systems
plication aor under-utilisation of resources
Absence of a standard architecture or database
gh cost of maintenance
Inadequate interface and integration with other applications
These issues have adversely affected the returns from IT investments. Incoherent technology
strategy leads to situations where incompatible options are selected and large sums of money are
wasted in attempts to integrate them. The bottom line is that the business performance has not
improved.
While Indian IT sector has helped numerous organisations around the globe to derive substantial
benefits from application of IT, there is plenty of room for IT application within the power sector in
India. There is a need to look at the global practices in IT adoption in the power sector so that ASEB
can benefit from them
A summary of the Gaps Observed in the IT Usage across the organisation are as follows:-
Local Area Network (LAN) or Wide Area Network (WAN) Communication Infrastructure is not
available in Utility Offices, which are required as basic IT Infrastructure for deploying any
Commercial or Operational IT Systems.
IT Infrastructure like ata Centre and isaster Recovery Centre does not exist for hosting any
application of the Utility. All standalone applications are being hosted in the individual offices
on low-end servers high end PCs without any backup or storage devices.
Power Utilities of ASSAM does not have any effective and up to date security mechanism for
its current IT Infrastructure.
sktop PCs and Printers are not available in all offices that are leading to more manual work
and lot of redundancy in the day-to-day working.
All the functions like R, Administration, Procurement, Inventory are being managed in
decentralised manner and totally manual. Best practise of these functions shall not be
adopted by the organisation until these are automated with better monitoring and system
defined process accountability.
Assam: Capacity evelopment of the Assam Power Sector Utilities nal Report stribution V-
The implementation of IT strategy aims to alter all this as every function will be IT supported
and every employee will have access to a PC in his work place. The employees will execute
most of their desk jobs on computer. The successor entities shall have to undertake extensive
IT training programme to make employees feel equipped, skilled and comfortable in a
computerised operational environment.
5.2. SPECIFIC GAPS OF APDCL

The data capture is manually done at substations that are the sources of information about
energy account and system availability and reliability. They compile data manually for
reporting to subdivisions, divisions, circles and higher offices.
Various popular channels for Revenue Collections like Any Time Payment Machines, E-Drop
Boxes, and On-line Bill Payment etc., are not implemented, which is leading to higher time-
lag duration between billing and collection dates and also impacting the consumer
satisfaction.
Revenue Billing is done in decentralised manner through billing specific software and no
process exist for quality control and accountability on timelines.
No standard IT system exists for the logging, executing and monitoring the consumer
complaints (operational / commercial) in a centralised or decentralised manner. Complete
process is being managed manually.
Pre-requisite for AMR System i.e. electronic metering is not in place. AMR system is not
implemented on any segment of consumers i.e. HT consumers of LT-CT consumers.
Consumers Indexing and Asset mapping, which is very basic pre-requisite for various modules
like GIS, Energy Auditing, Asset Management etc. is not in place and shall be one of the
reasons of revenue leakage or incorrect AT & C losses calculation
Even though the SPOT billing technology was tested by a Pilot project, but currently this is
not being used for any segment of consumers in any town of ASSAM.
OMMENDATIONS AND COMPREHENSIVE FINAL ACTION

PLAN

ER
a) Basic Level IT Infrastructure in all offices up to Sub Division Level
Utilities shall deploy basic IT infrastructure in its Head office, and all other offices. Basic IT
Infrastructure includes Desktop PCs, Printers, LAN, WAN, Internet, Mail Messaging (Email System)
Services, Anti-virus solution and Office Management Suite with proper training to the employees to
use IT in their day to day operations
b) Consumer Indexing and Asset Mapping

This exercise will bring the complete data of consumers and helps in linking the consumers with
electrical network of the utility.
c) Meter Readings through Hand Held Devices for LT Consumers

Reading through HHD will improve the meter reading accuracy and reduce the provisional billing and
billing efficiency.
d) Integrated and Centralised Metering, Billing and Collection System (Revenue

Cycle management System) on Software as a Service (SaaS) basis
Currently the DISCOM has the process of maintaining the Metering and Billing System in each
subdivisions. Centralising the complete revenue management system will reduce the efforts of
maintaining the applications in different locations and application up gradation will become easier.
Management can have a MIS of complete sales and collection from the single application without any
manual intervention.
e) Web Self Service with on-line bill payment service

To improve the transparency in the utility procedures and to provide the information on commercial
information to the consumers by providing the on-line bill payment would be a consumer delight
service in the Internet age.
f) Management Information System on Software as a Service (SaaS) basis

MIS are needed to manage organisations effectively and subset of internal controls procedures
covering the application of people, documents, technologies, and procedures to solve business issues
g) Small Scale Centralised Call Centre services on Outsourcing Basis for

Operational and Commercial Processes
The system is normally used to improve the customer service by processing and resolving Customer
requests/queries/complaints in minimum possible time by taking up it at appropriate place and level.
h) Automated Meter Reading System for the LT-CT and HT Consumers

The AMR and DA System will communicate with remote meters at the consumer sites over
GPRS/CDMA network, on a scheduled basis and obtain data from these meters as per DISCOM
requirements and raise exceptions after analysing the data.
i) Facility Management System

All power utilities of Assam does not have adequate in house skills to maintain and undertake the
administration of the applications, OD, Database, hardware and network elements of the IT
Infrastructure. . It will be best served to outsource the maintenance and administration of complete
IT Infrastructure. This is in line with the current trend in the Government and Public sector
organisations. IT infrastructure should be managed not just from a technology perspective, but from
a business perspective as well.

a) Any Time Payment Machines for Payment Collection
ATPM shall be implemented to provide more avenues to the consumers for payment of energy bills.
b) Knowledge Management System

To provide comprehensive content management and enterprise search, accelerating shared business
processes, and facilitating information sharing across boundaries for better business insight.
c) Pre-Paid Metering System

The pre-payment meter has the facility of automatic cut-off when the pre-payment is exhausted, thus
making it easier to manage and budget for consumers.
d) Geo-graphical Information System

Geographic Information System solution consists of a system for capturing, storing, checking,
Integrating, manipulating, analysing and displaying geo data related to positions on the Earth's
surface and data related to attributes of the entities/Customers in an utility area. It pertains to both
vector and raster GIS. The use of capabilities includes hardware, software and data, provided by a
Geographic Information System specific to a set of user requirements.
e) Implementation of Low Budget Enterprise Resource Planning (ERP) System

for Finance, Inventory, Procurement and Human resource
ERP implementation is required for integrating all base level support functions with a single integrated
application. ERP will capture the data from source and a standard ERP like Oracle or SAP will help the
organisation in long run for integrating with primary processes.
f) Asset Management and Maintenance Management

The system will have the ability to identify a business entity/district to which the equipment/assets
belongs and also should be able to reorganise divisions, office codes, etc. in the case of organisational
changes. The system shall have the ability to track from fixed assets to movable assets, line assets
(cables, conduits) to underground assets, which run across business entities.
Maintenance Management is required for better planning and co-ordination of various maintenance
activities, reduce breakdowns by inculcating the culture of preventive and predictive maintenance, to
maintain maintenance history, to review and control maintenance costs and providing a feedback to
management for timely decision making
g) Energy Audit and Accounting Systems

Monitor important distribution parameters, capture hierarchical view of energy accounting, Network
assets of power distribution utilities, intelligent analysis tools for plugging loop holes and identifying
revenue leakage, adding into perform network planning and management activities, calculate /
identify technical and commercial losses at any point in the network.
h) Fully Fledged Centralised Call Centre with IVRS Facility

a) Outage Management System
An Outage Management System (OMS) is a computer system used by operators of electric
distribution systems to assist in restoration of power. Main functions of OMS include
Prediction of location of fuse or breaker that opened upon failure
Prioritising restoration efforts and managing resources based upon criteria such as locations
of emergency facilities, size of outages, and duration of outages.
Providing information on extent of outages and number of customers impacted to
management, media and regulators.
Calculation of estimation of restoration times.
Management of crews assisting in restoration.
Calculation of crews required for restoration
b) Disaster Recovery Management System for Critical Applications

Every business faces minor downtimes, and major unknowns; hence it is important to have plans in
place, which guarantee business contingency. Most Organisations consider BCP as an inefficient use of
resources, i.e. an expenditure that does not bring any return on investments. But statistics tell a
different story, and events like Critical Business information unavailability serve as drastic reminders
that it is vital for every company to have plans in place to ensure business continuity. Business
Continuity Plans cost relatively little in comparison what the company could potentially lose in a major
incident.
c) SCADA System
As a minimum, the SCADA functionality includes continuous monitoring of the status and performance
of all power system apparatus located in the grid substations from a central location (the Control
Centre). SCADA functionality also includes support for remote control of substation devices, including
transmission switchgear, load tap changer (LTC) transformers, substation capacitor banks, and feeder
circuit breakers.
d) Enterprise Application Integration (Integration of the ERP System with

Commercial Systems)
To have control over all solutions and to successfully implement the enterprise level MIS, it is
required that all the different functions like support functions, core functions and applications for
other stake holders are integrated and data flow take place from one department to other without any
manual intervention. For achieving this framework, it is required that after stabilising the different
functions with their applications, all the applications needs to be integrated as a final stage for the IT
Roadmap.
6.2. IMPLEMENTATION IMPERATIVES AND ENABLERS

This section will include the resource requirement and other key imperatives that are required to be
in place for supporting the implementation process in a time bound manner.
Formation of an Dedicated IT Task Force
Formation of an Steering Committee
Formation of an Field Support Team for each Town
Electronic Meters Installation / Replacement
LAN connectivity in all the offices and network connectivity between all the offices for data
transmission
Selection of best suitable business models for IT implementation
Structured Planning.
Last two are to be developed in detail in the next sections.
6.2. SELECTION OF BEST SUITABLE BUSINESS MODELS FOR IT IMPLEMENTATION
6.2.2. STRUCTURED PLANNING

A structured and comprehensive IT strategy and plan will help Pr trt tt
to derive the benefits from information technology. The IT strategy and plans will need to consider
several aspects including:
The overall business strategy and needs
Potential changes to operations
Potential changes to industry structures (e.g. disaggregation of distribution business into
business development area focusing on information technology)
Leveraging existing IT infrastructure and applications
The phasing of the investments will need to be driven by the business priorities and the return on
investments.
The IT strategy and plan will include details on:
Application architecture
Data architecture
Infrastructure requirements hardware and network
IT organisation, processes, policies and standards
List of businessIT initiatives or projects and implementation plan for the applications to be
used by the organisation over a period of time
Investment requirements and their phasing
The above will form the blueprint for IT investment.

As a next step, functional specifications for all key applications need to be developed taking into
account current practices and potential business changes. Again as case of IT strategy and plans, the
functional specifications could be developed for all the business with each utility making specific
changes for meeting this unique requirement.

Utility shall prepare a Steering committee to monitor the complete implementation program from
designing to the Go-Live Stage. Steering committee shall consist of Top Management member of
Utilities, Members from different functions like HR, Civil, Automation, Operations, Commercial,
Metering, Procurement, Planning, IT and Stores. Steering committee would be responsible for
arranging the funds for the project, manpower mobilization, regular monitoring for any financial
impact or technical change, contract management with the implementation partner, etc.
Proposed IT Task Force would be responsible for co-ordinating with the Implementation Partner(s)
for assisting and facilitating the vendors in implementing the solutions as per the designed
specifications and within timelines. IT Task force would be responsible for final SRS Designing,
Process Blue Printing, Finalising the Bill of Materials, Testing and post implementation Support.
Proposed Field Support Team would be responsible for following activities:

Monitoring the commissioning activity of AMR Meters and Modems,
Monitoring the commissioning activity ATPM Machines,
Facilitating the vendor for proper Consumer Indexing and Asset Mapping,
Testing of town related data and process work flow
Unit of
Sr. Representati
Area KPI Measurement Measures
No ve Standards
(UOM)
1 IT Usage Network Uptime (Total Hours for which Network was up Total Hours of 1
Scheduled Downtime) / Total Hours of orking Hours in the
Organisation
2 IT Usage Recovery Time Hours Duration of time and a service level within which a business 2
Obective (RTP) process must be restored after a disaster (or disruption) in order
to avoid unacceptable consequences associated with a break in
business continuity
3 IT Usage IT User (Number of Employees expressed Satisfaction / Sample size of

Satisfaction Index employees interviewed)
4 IT Usage Power Usage Nos. Amount of power entering a data centre / Power used to run the
Effectiveness computer infrastructure within Data Centre
5 IT Usage Employees / No. of Desktop/ No. of Employees 100

Desktop Ratio
6 Consumer Customer of consumers, (Number of consumers expressed Satisfaction / Sample size of

Service Satisfaction Index somewhat or very consumers interviewed)
satisfied
7 Consumer of billing (Number of complaints resolved within regulatory time limits)

Service complaints 100 / (total number of billing complaints received)
resolved within
regulatory time
limits
8 Commercial Number of actual Planned versus Actual Say

ality meter readings
within a year
AF MERCADPS EMI - NDPL
Unit of
Sr. Representati
Area KPI Measurement Measures
No ve Standards
(UOM)
9 Commercial ltage Number of complaints attended to within 1 working days / Say 99

ality Complaints Total voltage complaints received

Assam Capacity Development of the Assam Power Sector tilities Final Report Distribution -
VI SUMMARY OF ACTION PLAN

time Responsibility
BUSINESS PROCESS
1 Short Functional Creation of a Centralised Check 1.11 Accurate Billing leading to 2 Months Utility
term and Technical Meter Reading Team to do random loss reduction
checking of cases
Increased Revenue
Automatic meter reading through Generation.
GSM modems can be introduced for
the HT consumers in Pilot Project
Area
2 Short Functional Energy Accounting and Auditing SBU wise accountability of 2 Months Utility
term through accurate metering and data performance
downloading
Identification of high loss
areas on which loss
reduction strategies can be
prioritized. Based on the
geographic conditions, utility
may decide to implement
HVDS or LTABC solution in
these areas
3 Short Functional Creation of a Central Data Analysis Accurate identification of 1 Months Utility
term and Technical Team tampering and theft cases
leading to revenue
assurance and reduction of
losses
Shall help in enhancing the
productivity of the
Enforcement Teams
4 Medium Functional Centralised Consumer Call Centre for Centralised Consumer 3 Months Utility/Regulators
term and Technical urban consumers Complaint Registration,
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VI-187
AF MERCOS EMI - q
time Responsibility
Tracking and Monitoring

Enhanced Consumer
Satisfaction
Medium Technical Introduction of New Payment Increase in Revenue 1 Months UtilityRegulators

Term Avenues collection
Improved cash flow for the

utility
Medium Technical On-line Payment Avenues or Urban footfall in the collection 1. Months UtilityRegulators
term Circle centre in the urban area
wer cost of transaction
charge per consumer
Speedy revenue recovery
from consumers
7 Medium Functional Spot Billing System Saving of money 2 Months UtilityRegulators

term and Technical
Billing related
Complaint
Improved Cash flow for the
utility
8 Medium Technical Creation of Centralised Commercial Ease of monitoring from a 18 Months UtilityRegulators
term database centralised locations
Uniform business processes

across the utility
Assam: Capacity sevelopment of the Assam Power Sector Utilities Final Report sstribution -188
time Responsibility
9 Medium nctional Business Process Automation Reduction of cycle time Months Utility/Regulators
term and Technical
Better productivity
Uniform business process

across the utility
Medium nctional GIS based consumer indexing 1.77 It will work as a central Months Utility/Regulators
term and Technical repository for the assets
Site visit will be minimied
as all the assets will be
mapped in GIS
Reduction in cycle time for
release of new connection
Easy reference for Network

Load flow studies
11 Medium nctional Utility wide creation asset base and Project life cycle tracking Months Utility/Regulators
term and Technical rollout of ERP
Ease of ARR filing
Project Monitoring
Medium nctional Building exception logics into the IT 1.11 Accurate Billing leading to Months Utility
term and Technical system which throw out exceptional loss reduction
cases such as High Consumption,
Low Consumption, Nil Consumption Increased Revenue
which need to be checked for proper Generation
billing
Use of Hand Held Meter Reading
Devices for reading with inbuilt
logics which ensure that reading is
brought correctly from site. This can
eliminate manual intervention in
data entry. Secondly time stamp
facility of HHDs enable prevention of
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VI-
time Responsibility
Coffee Shop readings
13 Medium Functional Rollout of SMS based fault .16 Reduction in downtime for 8 Months Utility/Regulators
term and Technical management system fault restoration
Improvement of operational
efficiencies
14 Medium Functional Creation of Mobile meter testing unit .83 Consumer meter can be 8 Months Utility/Regulators
term and Technical tested within specific time
periods
Lower commercial losses
due to metering error
15 Medium Functional Creation of advanced meter testing .27 Speedy check of meters 8 Months Utility/Regulators
term and Technical laboratory before installation
Lower commercial losses
due to metering error
Consumer satisfaction
16 Medium Functional Creation of state of training facilities 1.16 Capacity building for the 10 Months Utility/Regulators
term and training policies for employees employees
17 Medium Functional Introduction of KRA for the Employee will have a clear 12 Months Utility/Regulators
term employees goals of the targets aligning
with the Organisational
targets
Employee satisfaction
18 Medium Functional Load flow study for the networks Health of the network 20 Months Utility/Regulators
term and Technical
time Responsibility
Network re-vamping plan
19 Medium Functional Introduction of monthly score card Promote competitiveness 12 Months Utility/Regulators
term among different functions
Promote competitiveness
among different unit
20 Long Functional Performance based incentive for the Healthy competition among 28 Months Utility/Govt
term staff the staff
Drive for results
21 Long Functional Automation of Grids and Distribution Less downtime of networks 24 Months Utility/Regulators
term and Technical System
On-line line and transformer
loading data
Remote load shading of

feeders
22 Long Functional Creation of Back office model or Stream line commercial 26 Months Utility/Regulators
term and Technical Hybrid model for commercial functions
function
Increase in productivity
23 Long Functional Introduction of Door step Delivery Increase in productivity 20 Months Utility/Regulators
term system for inventory
Ease of maintenance of
assets
24 Long Functional Introduction of Door Step delivery Consumer Satisfaction 20 Months Utility/Regulators
term for the service connections
Reduction of cycle time for
release of new connection
time Responsibility
ACCOUNTANCY
1 Short Functional Opening Balances on 01-04-2005 No financial Compliance with audit within 6 Months Combined team from the
term Activity and Break-up of Assets. outlay ections reliability and companies and ad-hoc
accuracy of accounts team of 2 under Corporate
Completion of break-up of opening Accounting Unit to
balance among APGCL, APDCL and reconcile Suspense
AEGCL Account
2 Short Functional Accounting Setup - Appoint Recurring Consistency with ureau of within 6 Months Government of Assam and
term Activity Director (F) on regular basis on expenditure Rs 2 Public Enterprise guideline Chairman of the oards of
minimum three years tenure. Million or US 44 alignment with practice of other Director.
Million per year unbubbled State owned
for salary and compani clear management
other benefits responsibility and lines of
authorit timely and proper
resolutions of finance and
accounting issues.
Short Functional Share Capital - Convert the Share No financial Legal compliance within 6 months Company Secretary
term Activity Deposit Amount in to Paid up Capital outlay
in F 2010-11. OR Transfer the
amount to Unsecured Loan from
GoA.
4 Short Functional Classification of Expenditure for No financial Full compliance with accounting within 6 Months Proposed Accounting
term Activity Capital Maintenance as Capital, outlay standards Application Committee
Revenue Or Deferred Revenue
Expenditure - Issue general
guidelines with specific criteria to
decide the classification.
5 Short Functional Constitution of Audit Committee No financial Legal complian prevention of within 6 Months rd of Directors /
term Activity - Constitute the Audit Committee in outlay fraud and manipulation better Company Secretary.
accordance with Section 22 A of the coordination with statutory
time Responsibility
Companies Act 1956. auditor and CAG
6 Short Functional Formation of Accounting No financial Control of corporate accounting within 6 months Director Finance OR Chief
term Activity Application Committee / Cell outlay and proper application of General Manager
Separately for each Company) - accounting rules and standards
Constitute Accounting Application
Committee with selected Account
Executives not exceeding three to he
headed by CGM.
7 Short Functional Internal Control System - Rs 1 Million = Improved efficiency and internal within 6 Months Chief General Manager /
term Activity Outsourcing of the work to prepare US$ .022 Million control; timely and Accounting Application
Internal Control System comprehensive accounting Committee
reports
8 Short Functional Maintenance of Subsidiary Books Rs 1 Million or Compliance with Accounting within 6 Months Corporate Accounting
term Activity - Identification US$22 Thousand requirement Office / Accounting
Maintenance of Subsidiary Books Application Committee
- Monitoring
9 Short Functional Important Recommendation of Variable Complete and reliable financial within 6 Months Accounting Application
term Activity AERC - Compliance depending on the accounts in the determination of Committee
work to be utility revenue requirement and
performed tariffs
10 First Functional Audit Observation by Internal Variable Compliance within 6 Months Audit Committee
Activity Audit and CAG - Compliance depending on the
work to be
performed
11 Short Functional Statement on Overdue and No financial Legal Compliance within 6 Months Company Secretary / CGM
term Activity Provision of Interest on such outlay
bills of MICRO, Small and
Medium Enterprises - Show status
time Responsibility
in Notes to Accounts
12 Short Functional Cost Audit - Appointment of Cost Recurring annual Legal compliance within Months Company Secretary / Audit
term Activity Auditor by all the three companies Rs .5Million or Committee.
and installation of cost accounting U Thousand
system
Short Functional Statement of Non Adherence / No financial Legal compliance and alignment within Months Chief General Manager /
term Activity Part Adherence of Accounting outlay with Best Practice Audit Committee /
Polices - Develop Standard Accounting Application
Statement format Committee.
14 Medium Functional Organisation of Finance and Recurring yearly Timely and complete 18 Months
Tem Activity Accounting Department Rs .2 Million or performance of accounting
US1 functions and processes Director Finance
a) Revision of Service Rules for Thousand
Accounting Executives and staff
including qualification criteria and
performance based promotion HRD with CGM Accounts
system
b) Proper balance of Executive Level

and Supporting staff complement
15 Medium Functional Capability of Accounting System Rs 1 Million or Enhanced capability to generate 18 Months intly by Account
Tem Activity to Generate Timely and Reliable US22 Thousand timely, complete and reliable Application Committee and
Reports reports Company Secretary.
a) Computerisation of Accounting
System with on-line network; Accounting Application
Committee / Corporate
b) Review all Accounting Heads, Account Office.
prepare an Accounts Hand Book,
Manuals and Standard Formats.
time Responsibility
16 Medium Functional Board to direct Accounting No financial Legal Compliance 18 Months Accounting Application
Tem Activity Application Committee to be outlay Committee
Responsible for Compliance
17 Medium Functional Fixed Asset Register/Assets Not Rs10 Million or Fair and true picture of 18 Months Chief General Manager
Tem Activity in Use or Abandoned. Creation of US$22 Thousand companies' assets and (Technical) with the
Fixed Asset Register be external compliance with AERC Assistance of Accounting
appraisal experts and chartered requirements Application Committee.
accountants
18 Medium Functional Capital Work in Progress - No financial True and fair picture of 18 Months Chief General Manager
Tem Activity Capitalisation of completed works outlay company's assets (Technical) with the
that are still classified as CWIP. Assistance of Accounting
Application Committee.
19 Medium Functional Accounting for Stores and Rs10 Million or Proper management of stores 18 Months Chief General Manager
Tem Activity Inventory - Develop the updated US$22 Thousand and inventory; correct signals to (Stores)
Stores Manual. Complete procurement; prevention of theft
Computerisation with on-line and pilferage Accounting Application
networking capability Committee.
20 Medium Functional Internal Audit - Strengthen teams No financial Strengthen internal control 18 Months Director Finance / CGM /
Tem Activity at APDCL outlay Audit Committee.
21 Medium Functional Reconciliation of Deficiencies in Consultancy Reconciliation of accounting and 18 Months Director Commercial
Tem Activity Computerised Accounting and service fee to be billing (APDCL)
Billing - Hiring of regular IT determined
consultant to undertake
reconciliation
22 Medium Functional Reconciliation of Consumer Rs 1 Million or Reliable consumer data base 18 Months Director Commercial
Tem Activity Ledger at APDCL - Outsource US$22 Thousand (APDCL).
reconciliation to local IT consultants
to be assisted by 2 company staff
time Responsibility
23 Medium Functional Custody of Accounting Records - Rs 1 Million Legal compliance 18 Months Accounting Application
Tem Activity Set up a proper Accounting Record 22 US$ Million Committee.
Room at Corporate Offices of the
three Companies.
Long Functional Convergence of IFRS with To be determined Convergence Months Chief General Manager
term Activity Accounting Standards - Outsource
convergence work to a Competent
Chartered Accountant Firm.
Mandatory participation of account
executives in the work
FINANCIAL MANAGEMENT
1 Short Institutional Organisational Autonomy: No financial Better financial planning and 1 to 6 months GOA
term outlay management by the utility and
to provide autonomy to APDCL enhanced financial independence
in the financial management of
externally provided funds for capital
expenses such as those in the form
of grants; concessional loans from
National and State Agencies and
regular financing facilities from
secured from financial institutions.
2 Medium Functional Risk Management System: Insurance Savings in utility out of pocket 6 months to 1 year HR. Chief ngineer
term premium for costs for workers related injury Distribution and CGM(F)
Designation of Official in charge of policy. and compensation. For example,
Risk Management and Adoption of APDCL spent USD as
Risk Management Policy. Risk policy Based on NDPLs compensation in 28- and
to include: experience, USD in -
a) Group Insurance Cover for Approx. SD ployees security through
ployees and Network per year for insurance cover results in
(Including Grids). USD cover employees satisfaction and
per employee ; timely settlement of claims.
b) Cash transit insurance to be
taken in sub division/ICRA with Approx.
time Responsibility
daily cash collections beyond a USD/year for 0.2

specified amount and based on Million USD
geographical condition of the Cover For Grid
sub division/ICRA such as their Station
distance to the nearest bank.
Bank charges 1
USD per 1000
USD. for Bank
taking
responsibility of
the cash.
3 Short Functional Fund Management System:

term
a) Dismantling of the centralised No financial Financial autonomy Within 6 months ASEB in its capacity as
cash management system outlay project manager for the
projects funded by these
b) Restructuring of GOA loans and No financial loans ; Boards of Directors
other loans that are in arrears outlay Avoidance of additional financing Within 6 months
charges and better financial of the utilities; and
Clarify repayment schedule of ADB management. For example, Finance Directors
loans APDCL requires approx. Re. 0.72
paisa /unit pay its accumulated
debts obligation and Re 0.01
paisa/unit for future interest
obligation. ((Assumption: figure
estimated on the basis of data
for F.Y 2008-09 and repayment
is assumed to be in 6 years.
4 Medium Functional Budget Management System: Approximately More accurate budgets and 6 months to 1 year DGM Finance
term 12000 USD/year control of variances.
Adoption of systematic budgeting for the salary of
process backed up by an automated a new hire
Management Information System budget officer
whose main
responsibility
would be the
management of
the budget.
time Responsibility
P cost approx.
US$2 Million
5(1) Medium Functional Working Capital Management: No financial Better management of working 6 months to 1 year CGM Finance
term outlay capital; enhanced liquidity
Adoption of Working capital
management policy
5(2) Short Functional Immediate implementation of the No financial Savings in overdraft bank facility At most 6 months CGM Finance
term following measures: outlay interest for one day on the daily
collection. As per MRR, collection
a) Cash/cheque payments of of GC-1 for the F. - is
consumers that are picked up from 68.218 Million USD and the SBI
the Guwahati circle 1 (GC-1) by OD facility is availed at 9.75
Axis bank should be directly p.a. , so annual saving would
deposited to APDCLs SBI collection worked to the tune of 18
account to shorten the float time USD (Approx.).
between the collection and deposit of
funds in APDCL account to at most
one day.
C-1 accounts for 23.22 of total

APDC collections in 1 year.
Short Functional b) Cheques and cash collected at No financial Opportunity cost from foregone At most 6 months SMR-Sub division
term Subdivision /ICRA should be outlay interest on deposit.
deposited on the same day to the
collection account.
Control measures:
Daily remittance sheet (DRS) to
be sent by ICRA/Sub divisions to
Corporate office stating cash and
cheque collected and cash and
cheque deposited into bank
account.
Daily reconciliation between cash
time Responsibility
and cheques collected with cash

and cheques deposited into bank
account.
Monthly reconciliation statement
between cash and cheque
collected with amount credited to
consumers account to be
submitted to corporate account.
Monthly details of bounce

cheques and debit of consumer
account.
Short Functional c) Adoption of policy that would Administrative Handling of cheques is easy as At most months M()
term require the payment by cheques of cost only compare to cash. Promoting
bills exceeding a minimum amount, cheque collection could mitigate
say INR 10,000. risk for cash loss.
APDCL also incurred a cash loss

of about 1 lacs during cash
transit to bank few years back.
(As confirmed by CGM (F & A) ).
Cash loss could be avoided by
taking the cash transit insurance.
As confirmed, bank pick up
facility for GEC-1 is about to
suspend and it amount to
23.22% of total collection.
Short nctional d) MRR of all sub divisions needs to NIL Amount outstanding of 3. months M() and M(D)
term be added to derive the amount that Million USD as per C1
could be recovered from employees monthly revenue statement
and other ASEB (MRR) for the month ended
undertakings/premises. December 21 The cumulative
effect of total amount
Management policy to recover the outstanding may be very high
outstanding amount from employee seeing the number of Circles to
and other establishment. be sub division/ICRA is 15.
Control measure
time Responsibility
Monthly report to be generated

about the outstanding dues and
sent to HR for the recovery of
dues.
Short Functional Billing software to provide ageing Software As per MRR Statement of - 6 months Commercial Department
term analysis of the receivable and modification 10 total outstanding 75.774
Immediate disconnection of the charges to be Million USD with days receivables
connection after expiry of the grace quoted by at 104 days. As per monthly
period. software billing cycle and disconnection
provider. process on non-payment,
receivable to the tune of 60 days
are acceptable. So receivables
for 44 days could be avoided on
prompt disconnection and
Opportunity cost of receivables
amounting to 51.584 Million USD
could be saved.
Medium Technical Billing software to include temporary Software Increased billing efficiency and 6 months to 1 year CGM (Comm.), CGM (F).
term connection billings. development management of receivables. If
charges to be billing efficiency of the utility
paid to external increase by 1% the expected
experts. increase in stabilised revenue of
utility is up to the tune of 0.278
Million USD per year.
6 Long Functional Inventory Management System App 1 to 1.5 Elimination of inventory losses 2 to 3 years CGM(D) ,DGM (CSD) and
term Million USD for through obsolescence, fraud and including training CGM(F)
Introduction of computerised the Cost of hiring waste. Inventory losses
inventory management system as external expert estimated at 3.714 Million USD
part of ERP to develop for Financial year 2009.
computerised (provision for stock as per
Inventory balance for the period ended 31st
Management march 2009)
system and
conduct staff In NDPLs Case:
Savings due to on-line indenting
time Responsibility
training. for stores- USD per year

reduction in overall
inventory after implementation
Software and of ERP solution within 3 years.
hardware cost The value of inventory came
included in the down from 21.5 mUSD to 13.6
ERP cost mUSD. The opportunity cost of
estimate 7. mUSD could be saved on
account of ERP implementation.
reduction in slow moving
inventory. After implementation
of ERP solution for inventory
management NDPL could able to
bring down within 3 years. The
value of slow moving inventory
from 9.218 mUSD to .798
mUSD. The opportunity cost of
3.9 mUSD could be saved on
account of ERP implementation.
7 Medium Functional Procurement Management System No financial Savings estimated at 5-10 of 6 months to 1 year CGM (D), DGM (CSD) and
term outlay total purchase from bulk to identify and issue CGM (F)
a) Centralised purchasing at head purchase discounts. Elimination invitation to
office of Category A and B materials of inventory losses through prospective
but directly delivered to stores in the obsolescence, fraud and waste. suppliers to join
requisitioning zones/ fields and Inventory losses estimated at. bidding
issued as per requirements. 3. mUSD for F 2009.
.(provision for stock as per
balance for the period ended 31st
march 2009)
8 Medium Functional b) Aggregated purchasing by No financial Included in above estimate 6 months to 1 year CGM(M), CGM (nes),
neighbouring zones of categories C outlay to identify materials CGM (CSD), CGM (F)
and D materials to avoid that could be
overstocking of materials that are subject to
used in common by these zones. aggregated
purchasing; to
identify and issue
invitations to
time Responsibility
prospective
suppliers and to
conduct bidding
Medium Technical Introduction of Rate Contract No financial Savings from purchases at rate Medium CGM (M; CGM (;
mechanism for the procurement of outlay contracted rather than at prices CGM(F
inventory by field; zones. higher than standard is
estimated at 5- of total
purchase cost.
HR MANAGEMENT
1 Short Functional Develop and establish a Human Indirect costs of A process t (a drive, facilitate The 3 utilities
term Resources Steering Committee HRSC member and coordinate the numerous management
(HRSC HRM, Training and Capacity
Participation Building initiatives of this
1.1Obtain approval for terms of borne by the 3 consultancy and
reference and modus operandi utilities (1.1 2 w.
(b Ensure momentum for longer
1.2 Create a HRSC, including term reform and changes in (1.2 1 mo.
appointment of members these areas
(1.3 .
1.3 Develop and commence
execution of an overall HRSC (1.4 2 mo.
communication plan
1.4 HRSC develops and
communicates its first Quarterly
Action Plan per the guidelines
2 Short- Functional Enhancing the HR function APDCL Staff Lay the groundwor for an HR
Long Costs function that (a supports the
term 2.1 Propose HR Structure and many HRM and Training (2.1 2 ws.
Staffing Distribution
Genco and
initiatives required for the reform (2.2 2 w.
2.2 HRSC to obtain necessary of the three utilities and (b
Transco supports the processes required
approvals manpower by the three utilities to
2.3Sanction CGM HR position and budgets (2.3 ws.
effectively manage their human
Distribution resources in a manner that is
time Responsibility
/approval of role definition for CGM Genco and consistent with modern day (2.4) 2 mo.
HR Transco practices, that strengthens
manpower achievement of corporate goals
2.4 Hire CGM HR budgets and that results in a motivated (2.5) 2.5 mo.
2.5 Hire university M HR graduate and engaged workforce
2.6 HR orientation and presentation

of action plans for HRSC2.7 Specify (2.6) 1 mo.
criteria, competencies
and selection process for internal (2.7) 2 mo.
candidates
2. Approve preliminary HR/Training
organisation and staffing (2.) 2 yr.
2. Hire HR executive trainees (1 . st
batch) MT
(2.) 14 mo
2.10 Conduct training for new HR
management trainees MT
2.11 Hire HR executive trainees (2nd
. batch) MT
Medium Functional Enhance Performance Appraisal Indirect costs of Lay the groundwork for the three
term system: HRSC member utilities to move towards a
participation performance based organisation,
1Develop summary of existing borne by the that in turn encourages .1) 4 mo
process utilities productivity and achievement of
.2) 4 mo
2 identify relevant performance corporate goals as well
heightening staff motivation and
criteria .) 6 mo
engagement
Develop Performance appraisal .4) 2 years.
system for Class I and II employees
4 Development of Performance
Appraisal System for Class III
Employees (Medium term)
4 Short Develop process for Organisation Distribution Provide the essential foundation
term charts and Sanctioned Posts: Genco and for: (a) making improvements in
time Responsibility
4.1 Utility designates responsible for Transco budgets? the strategic management of
organisation charts human resources. (A requisite
for analysis and consideration of
4.2 Utility designates responsible for HRM process and policy
sanctioned post lists (4.1) 3 mo
development) and (b) fiscally
4.3 Utility designates responsible for responsible and transparent
monitoring and reporting control of people costs.
(4.2) 3 mo
organisation charts and sanctioned
post lists
4.4 System to be dovetailed with (4.3) 3 mo

Manpower Planning System -MT
(Medium term)
5 Short Functional Organisation (current) design for all Distribution + First application of the results
term 3 utilities Genco and described above.
Transco budgets?
5.1 priority preparation and approval
of organisation charts for all three (5.1) 5 mo
utilities
6 Short Functional Manpower norms: (Distribution Indirect costs of Assist the utilities in achieving
term only) HRSC member manpower requirements that are
consistent with sector (6.1) 3 mo
6.1 review manpower norms for Participation benchmarks and that are both
NDPL, MSEDCL or others. borne by the 3 cost effective and fair.
utilities? (6.2) 6 mo.
6.2 Determine and recommend new
manpower norms for Distribution Distribution +
Genco and
Transco budgets?
7 Short Functional New Outsourcing: Distribution + Assist the utilities in achieving

term Genco and staffing practices that are
(Distribution only) Transco budgets? consistent with sector (7.1) 3 mo
7.1 review potential for new benchmarks and that are both
outsourcing cost effective and fair
(7.2) 5 mo
7.2 Determine and recommend new
time Responsibility
areas for outsourcing
8 Short Functional Creation of Legal Section: Distribution + Introduce into the utilities a skill
term Genco and and expertise that has heretofore
8.1 Approval of each utility Transco Staff been found to be seriously (8.1) 2 mo.
8.2 Developing role description costs lacking (current demand (8.2) 4 mo.
internally for this skill and
8.2 Hire Law Officers/Staff expertise, which is now being
performed by ill qualified people
whose main role is being
detracted from
9 Medium- Technical and Develop Human Resources Indirect costs of Lay the groundwork for the
Long Functional Information System (HRIS): HRSC member development of a system that is
term the cornerstone for effective
9.1 Comprehensive list of Participation (including cost effective) HRM,
information needs borne by the 3 (9.1) 4 mo.
both in its developmental and
utilities? on-going maintenance phases (9.2) 6 mo.
9.2 Develop HRIS
Distribution +
Genco and
Transco budgets?
10 Medium- Functional Develop Manpower Planning (MPP) Indirect costs of Lay the groundwork for the
Long System (Recruitment Plan) HRSC member development of a system that is
term integral to effective and strategic (10.1) 6 mo. and
10.1 Comprehensive list of Participation HRM on-going
information needs borne by the 3
utilities? (10.2) 1 yr. and on-
10.2 Develop MPP system going
Distribution +
Genco and
Transco budgets?
11. Medium Functional Preparation for Massive Retirement Response to dealing with large
term scale retirement
(for APDCL only)
time Responsibility
11.1 Establishing current norms for

key processes in APDCL
11.2 Team to study discoms and

submit report
11.3 Approval of norms and
outsourcing philosophy
11.4 Extrapolate internal data with
11.3 and determine action plans
11.4. Create continuous Pipeline of

talent through induction level
trainee schemes
12. Medium Functional Establishing Automated Attendance Costs would be Basic requirement, accuracy and
term contingent upon speed in processing data
Record System coverage and
12.1 In-principle approval and go nature of system
ahead opted for
12.2 HRSC to evaluate various

systems, costs etc for
implementation
12.3 HR/IT to implement
13. Medium Functional Motivating Employees: Developing

term policy based on practices, approval
and implementation of:
13.1Non-financial/Financial
incentives for improved performance
13.2 Special facilities/allowances for
postings in remote areas
13.3 Communication Program and
planned visits to other utilities to
energise.
time Responsibility
14 Long Functional Develop enhanced Promotion Indirect costs of Start the momentum towards
term system: SC member performance oriented utility
participation organisations with motivated and
14.1 Assess the effectiveness of
implementation of target linked
engaged staff (11.1) 2 yrs.
performance based (11.2) 2 yrs.
appraisals14.2 Identify
roadblocks/ acceptance of out of (11.3) 2 yrs.
turn (read seniority based)
promotions by stakeholders
(11. ) 2 yrs.
3 develop recommendations for
promotion policy
Gain approval and implement i
IT
1 Medium Functional Consumer Indexing and Asset 2 Linking of the all electrical 12 Implementation Partner,
term Mapping equipments, digitaliion of IT Task Force and Field
database, Better Energy Support Team
Accounting
2 Medium Functional Meter Readings through nd ld 2 (for 3 years) Fast and Accurate Meter readings 12 Implementation Partner,
term Devices for LT Consumers though an automated system. IT Task Force, Commercial
ng
3 Short Functional b Self Service 0.05 Enhancement in Consumer 3 Implementation Partner,

term Satisfaction and Transparency in IT Task Force
Utility Processes
Medium Functional Any Time Payment Machines for 0.2 Better Collection Efficiency 3 Implementation Partner,
term Payment Collection IT Task Force
Less crowd in the Cash collection
offices
AF MERCADOS EMI NDPL
time Responsibility
Short Functional Basic Level I Infrastructure in all 0. Improvement in communication 4 Implementation Partner,
term offices up to Sub Division Level among the groups and ask Force
departments and will help in
change management for working
on I Systems.
Will provide a basic
infrastructure to deploy the
applications
6 Medium Functional Implementation Enterprise Resource 1.2 Ensures quicker processing of 6 Implementation Partner,
term Planning (ERP) System for Finance, information and reduces the ask Force, and
Inventory, Procurement and uman burden of paperwork. Respected departments
resource
accounts department
personnel can act independently.
y t have to be behind the
technical persons every time to
record the financial transactions
7 Medium Functional Centralised Call Centre services on 0.4 Reduction in time taken to 4 Implementation Partner,
term Outsourcing Basis for Operational resolve the consumer ask Force
and Commercial Processes (Phase complaints.
1)
Centralised and effective manner
for logging and monitoring the
consumer issues
Medium Functional Facility Management System 2 Value and savings gained. 4 Implementation Partner,
term s occurs during initial transfer ask Force
from in to outsource as they do
the job much more cheaply
because of the availability of
huge manpower and similarly
larger global business
It can eliminate fixed overheads
and physical plant ownership,
thus cutting costs
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VI
time Responsibility
9 Short Technical Automated Meter Reading System Increased Data Security, Implementation Partner,
term for the LT-CT and HT Consumers Reduced operation costs, IT Task orce, Metering
Improved cash flow budgeting Department, ield Support
and management Team
Medium nctional owledge Management System 1 Sharing of valuable Implementation Partner,

term organisational information IT Task orce
throughout organisational
hierarchy
Can avoid re-inventing the
wheel, reducing redundant work.
May reduce training time for new
employees
Retention of Intellectual Property
after the employee leaves if such
knowledge can be codified
11 Medium Technical Pre-Paid Metering System Reduces manpower cost to Implementation Partner,
term the EB IT Task ce, Metering
Department
Improves Liquidity of the
Energy Billing
Hassle ree for the consumer
Medium Technical Geo-graphical Information System to Reduce Outage Time, Improve Implementation Partner,
term Revenue Realisation, Reduce IT Task orce, ield
Opex and Capex, Improve Support Team
Customer Service
Medium nctional Asset Management and Maintenance Better tracking and Implementation Partner,
term Management maintenance of all distribution IT Task orce,
assets of the Utility. Timely
maintenance compliance of
time Responsibility
electrical equipments and will

provide provision on
escalation and accountability.
14 Short Functional Energy Audit and Accounting System 0.1 Better accounting of energy 3 Implementation Partner,
term and input, billed and revenue IT Task Force,
Medium realised. More accurate ATC&C
term losses figures shall be
obtained.
15 Medium Technical Centralised Call Centre services on 1 Reduction in time taken to 6 Implementation Partner,
term Outsourcing Basis for Operational resolve the consumer IT Task Force
and Commercial Processes (Phase complaints.
2) with IVRS Facility
Centralised and effective
manner for logging and
monitoring the consumer
issues
16 Long Technical Outage Management System 3.6 Reduced outage durations due to 18 Implementation Partner,
term faster restoration based upon IT Task Force, Operational
outage location predictions Wing
Reduced outage duration
averages due to prioritizing
Improved customer satisfaction

due to increase awareness of
outage restoration progress and
providing estimated restoration
times
17 Long Technical Disaster Recovery Management 2 Backup of Data on Regular Basis, 8 Implementation Partner,
term System for Critical Applications Improved Network and IT Task Force
Application Uptime.
18 Long Technical SCADA System 4 Significantly reduce operating 18 Implementation Partner,
AF MERCADS EMI - NDPL
time Responsibility
term labour costs IT Task Force, perational

ng
Improve plant or regional system
performance and reliability
19 Long Technical Enterprise Application Integration 2 Seamless data flow between Implementation Partner,
term ntegration of the ERP System with different applications IT Task Force
Commercial Systems
Assam Capacity Development of the Assam Power Sector Utilities Final Report Distribution -211
VII ANNEX OF CORE BUSINESS
1. SAMPLE MONTHLY REVENUE RETURNS REPORT FOR DIBRUGARH DIVISION AND FEEDER WISE
ENERGY LOSS REPORT.
ASSAM POWER DISTRIBUTION COMPANY LTD.

REVENUE RETURN FOR THE MONTH OF OCTOBER, 2010
5th of succeeding
Name of the Wing: DED Last date to reach E.E -
month
8Th of succeeding
Name of Division: Dibrugarh Electrical Division Last date to reach S.E -
month
Last date to reach A.C.E. (COM- 12th of succeeding

Name of Circle: Dibrugarh
R) - month
Total no. of disconnected
Arrear receivable in days

Waival Amount during the month (in Rs.)
Total no of Consumers on the last date of
Total nos. of stopped / defective meters

Consumers on the last
PDC amount during the month (in Rs.)

Total frozen outstanding at the end of
Outstanding at the end of the month

Total nos . Of bill served during the
Total units billed during the month

date of the month
excluding the frozen & P.D. arrear

Total outstanding Against P.D.
the month excluding P.D. &
Connected Load in KW
Revenue Demand in Revenue Realized in
Collection efficiency (%)

Rupees Rupees
T.D.consumers
Average billing rate

consumers
the month
month
Category of Consumer
Excluding PDC&Frozen
P.D.C
T.D.C
Curre Arre Curre

Arrear Total Total
nt ar nt
Total
3( 3( 10(a 10(b 11( 11(
1 2 4 5 6 7 8(a) 8(b) 8( c) 9(a) 9(b) 9( c) 10( c)
a) b)
a) b) ) )
LT Category
1
161 141 10301 1892 6273 44685 2.3
I Jeevan Dhara 91 0 786 44466 17 440919 543932 78151 97074 94013 0 0 94 340 3
9 9 3 3 58 8 2
0
261 12 74 376 263 28983 230 433459 11289 156245 2433 97338 12167 76844 34573 3.9
II Domestic A 0 0 0 108 30 9
05 39 3 03 28 54 5 8 915 13 274 95 169 57 44 0
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VII-212
13 18557 239623 2981 17357 36228

5.
III Domestic B 612
9
2
2 5
6 92 57 7
6
9
Commercial 11227
9929 58511 5.9
1 7 5 36 6 57 2 13 5 33 57 75
6
3
General Purpose (up to 167 97517 12351
2 5.9
) 9
589
35 936935
1 6 22 8 5 6
32
9
Public lighting 6 5.3
89 117 88
6
8572 62828
6
59 61
1
I Agriculture (up to 7.5HP) - - - -
II(I) Small Industries(Rural) 1126

3.2
279 27
5
31951 91 52
5
II (II) Small 123
22986
2 3.9
Industries(Urban)
126 9
2
129
6 7 3
22218
1
93 25
2 8
) Temporary - - - -
Supply(Domestic)
Temporary Supply (Non
domestic)
38 128 79 29863 19552
3
195523 19552
3
19552
3
6.5
5
61
5 123
6
1.1
Rural unmetered(Domestic)
8
231285 11985
9 5
3
1
8

Rural
Unmetered(Commercial)
- - - -
ployees 3 2.2
Deptt. 297 297 32286 72593
92
5
Boars stablishments 269792

26979

9
7.5
18 18
8 3 23
9

H.T. Category
I Domestic - - - -
II Commercial 67292 7739 67292 112 7 7

6.9
8
3 6.1
III Public Water Works 115
9
Bulk Supply(Govt.
cation) - - - -
6.
Bulk Supply (Others) 1 31 1 3931 23879 23879 23879 23879 7
HT small Industries (above
2
3.7
to 1 23 1 52818 59521 59521 266 6
6
2
H.T-I Industries
(above5A to 15A)
- - - -
HT-II Industries(above
- - - -
. Tea, Coff Rubber 1 6.1

9 58 9 5999 25771 62786
126 13
3 7
I. Oil and Coal - - - -
II HT Irrigation(above 3 13.
7.5HP)
1 19 1 95 1256 2597 1256
22
Single point supply to agency
161
57566 6699 16866
19
1 2.9
6 3 2 2 6 5 1 6 9 1
AF MERCADOS EMI - NDP
Boars Establishments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - -
TO
366 22 10 602 361 48708 244 114459 22043 334896 4477 18650 23127 10294 6273 10361 1 4.5
0 0 105 29
86 43 09 44 31 30 2 68 676 44 417 262 679 980 58 965 4 3
(a) Total units of energy injected during the month (in mu) 14.576 Prepared by: Checked by:
Deputy Accounts Officer/ Sub-Manager Revenue/ Sub-Divisional

(b) Total Units billed by IRCA during the month (in MU) 5.763
Accounts Officer Engineer/ Executive Engineer/ Area
Manager/ Chief Executive Officer
(c) Total amount transferred to the principal account by the Bank
25519502.90
during the month (in Rs.)
(d) Total arrear amount against Municipal Board/Town

276033.00
Committee (in Rs.)
(e) Adjustment of Govt. outstanding (in Rs.) 627943.00
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution PI-
Feeder-wise Energy Audit for the Month of October, 2010
Name of the Circle: Dibrugarh Electrical Circle.
Name of the Division: Dibrugarh Electrical Division.
Defective Meters Replaced(No)

Reliability index of the Feeder
Revenue
Length of the Feeder in Km.
Nos. of DTRs of the Feeder
Collection Efficiency in %
No. of days receivable of

Total Nos. of consumers
Total MVA of the Feeder
Connected load in MW
Average Power Factor
Billing Efficiency in %
Energy injected in MU
Current Dem (Rs.in Lakhs)
Defective Meters(No)
Energy Billed in MU
Total Realisation (Rs.in
AT & C Loss in %
Arrear Demand (Rs.in
T & D Loss in %
Mal-practice
Arrears
ARR in Rs.
Sl. Name of the Name of
Lakhs)
Lakhs)
No. Feeder the FME
1 2
1 2 3 4 7 10 11 12
3
14 17 20 21 22
3
24
2. 2. 100.4 3.7 10
33 Lepetkatta 30. 0. 03
1
7 7 14.33
3 0
7
0 0
7
-1 13
11kv utuha Purna anta 1. 1. 2. 4

1(a)
Saikia
13. 13.40
0
0.
0
0 13 4
0 0 14
3
21
feeder
0.43 0.32 2.2 10 2
1(b) 11kv D Feeder 1. 1.
0.
0 7
0 0 0
21
2 33 Railway 1. 2 00 1 3.
0.33
0.
0.33
0 0 0 0
10 10
0 0 0
0 0 3 0 0
3
Debojit 12 10 420
0.
0.
0.
0 3.
0 0 10
22
2

Railway(qban) Chetia 7 1 1
4
Railway 33.3 22 2. 3.
0.
0.
0.22
0 72 12.34 2.
0 0 10
3

(Rural) 7 1 2 2 4
2. 2.
33 Hazelbank 32 1
0.
3
sa) 33 Nadua 1 2. 1 2.70

0.27
0.
0.
0 14. 0.00 14.
2 0 0 10
4 4 0
0 0
sb) Mohanbari 2. 0.12
0.
0.12 10 10
33 D.rohain. 7 1 1 1.20
7 7
0 7.14 0.00 7.14
2
0 0
0 0
0 0 0
33 Mohanbari 0
sc) 2 2.00 1 1.
0.21
3
0.
0.21
3
0 10.70 0.00 10.70
2
0 0
10
0
10
0
0 0 0
Airport
0. 3
27. 4. 0. 24. 3. 24.
0.40 10 1
sd) 11 Nadua 0
0
0 0
0
13
3
4
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VII-
t MERCADOS EMI - NDPL
5(e) 11 V Maian 25. 37 050 97% 55 0.

0.
0.37
0 19 3.20 12
5.
0 0 10
13
1

0 5 1 0 3
11 V New 12.
Town(Urban)
25.2 0
373
10.13
1.
3
0.90
1.05
0
0 91 7. 3.
3
0 0 75 25
2
5
11 V New
Sankar Mili
7
Town(Rural)
5 5 0.030 0. 0.03
9
0.02
1.2 0.05 1. 2.9
2
0 0 72 95 3
2
3
0.
11 V Emergency Danial
22.9 5.000 99% 115 3.37
0.50
3
0.
7
0 112.
3
2.9
0
0 0 17
5
2
9 11 V Chabua Ahmed. 199. 75 12 2. 0.92
1.
0 93.73 10.21 92.21
3.5
0 0 3

0 2 5 3 1 7
90. 39
Dibrugarh
Division Total
577. 95.23
207
2
11.5
5
0

202.2
3 5
3.
9
0 0 72 2
9
15
N.B. A. Unit injection of Hazelbank Sub-station: The Total unit iection of the feeders under DESD-I DESD-II is
shown as 11.5 in place of 10.9 MU due to the following reason:
Unit inected through 33 V abank feeder 2. MU
1. An outflow of 1.092 MU through 33 Dian feeder.
Unit received at 33 V aelbank Sub-Station 2. MU 2. An intra subdivision cross flow of 0.023 MU from 11
Chabua feeder to the 11 V Emergency fdr.
Unit outflow through 33 V Dinan feeder 1.092 MU
Unit outflow to 33 V Nadua Ss from 11 V
0 MU
Chabua feeder
Net MU consumption of HZL BNK S/S 1.506 MU
B. Unit injection of 11 KV Chabua Fdr:
MU recorded at Dib Grid SS 2. MU
MU outflow through 33 V Nadua feeder 0 MU
MU outflow through 11 V Emergency feeder 0.023 MU

Net MU consumption of 11 KV Chabua fdr. 2.625 MU
C. Unit injection of 11 KV New town Fdr:

Senior Manager
MU recorded at Dib Grid SS 1. MU Dibrugarh Electrical
Division
MU outflow through REC side 0.039 MU APDCL:::Dibrugarh.
Net MU consumption of 11 KV Newtown
1.403 MU
fdr.(Urban)
D. Unit injection of 11 KV Emergency Fdr:
Assam: Capacity Development of the Assam Power Sector Utilities nal Report Distribution VII-
Units injected through the Emergency fdr. 0.4796 MU
Power inflow from 11 KV Chabua fdr. 0.023 MU
Net MU consumption of Emergency fdr. 0.5026 MU
Actual Unit injection of DESD-II = 6.169MU
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VII-217
VIII ANNEX TO FINANCE SECTION

The following tables present the investments plans of APDCL.
Table 23 - APDCL Capital Investment Plan FY 2012-2013 in Rs Lakhs
RE
Consumer's
Investment Plan ABY CMPSM (TSP & RGGVY APDRP Total
deposit
SCCP)
UAZ
Substation addition 540 0 0 1369 563 2000 4471
Feeder Addition 402 0 157 3398 624 4000 8579
DTR addition 216 0 29 5030 58 2500 7832
PTR Addition 169 0 0 0 0 1000 1169
Reliability Investment 0 0
Re-conductoring 566 0 0 0 0 566
Renovation of Old
280 493 0 0 0 773
assets
Technology up-
0 0 0 0 0 0
gradation
Consumer related
0 0 0 0 0 500 500
Investments
Total of UAZ 2172 493 186 9796 1244 10000 23890
RE
Consumer's
Investment Plan ABY CMPSM (TSP & RGGVY APDRP Total
deposit
SCCP)
CAZ
Feeder Addition 1484 0 900 15096 548 3000 21028
DTR addition 228 0 59 1098 47 3500 4933
PTR Addition 367 0 0 0 0 1800 2167
Renovation of Old
280 376 0 0 0 655
assets
Technology up-
0 0 0 0 0 10000 10000
gradation
Consumer related
0 0 0 0 0 100 100
Investments
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VIII-218
Total of CAZ
RE
Consumer's
Investment Plan ABY CMPSM SP RGGVY
deposit
APDRP Total
SCC
Z
Substation addition 1141 0 32 1040 342 2555
Feeder Addition 193 0 157 3039 1180 4569
DTR addition 138 0 0 1998 144 2281
PTR Addition 374 0 0 0 0 374
Renovation of Old
272 724 0 0 0 996
assets
Technology upgradation 297 0 0 0 0 15000 15297
Consumer related
0 0 0 0 0 300 300
Investments
Total of LAZ 2468 724 189 6077 1691 15300 26450
RE
Consumer's
Investment Plan ABY CMPSM SP RGGVY
deposit
APDRP Total
SCC
APDC Total
Feeder Addition 2079 0 1214 21533 2351 7000 34177
DTR addition 582 0 88 8126 249 6000 15046
PTR Addition 909 0 0 0 0 2800 3709
Reliability Investment 0 0 0 0 0 0 0
Re-conductoring 1386 0 0 0 24 0 1410
Renovation of Old
832 1592 0 0 0 0 2424
assets
Technology up-
297 0 0 0 0 25000 25297
gradation
Consumer related
0 0 0 0 0 900 900
Investments
Total of APDC
1. BRIEFING ON CAPITAL INVESTMENT &

BUSINESS/FINANCIAL PLANNING
1.1. WORKSHOP ATTENDANTS
Sl.
Name Designation Contact No. E-mail ID
No
1 Utpala Sharma CGM (PPD), APDCL +91 cgmppd_aseb@hotmail.com

9954097071
2 Deba Priya Das CGM (CAZ), APDCL +91

9435047391
3 F Karim DGM (PMU), ASEB +91 fazulkarim@yahoo.com

9435107231
4 Bharat Kaman AGM (PP &D), +91

ASEB 9435112895
5 Antara Baruah AGM (PMU), ASEB +91 antara_baruah@rediffmail.com

9864024281
6 Jiten Borthakur AGM (PP &D), +91

ASEB 9435360433
7 Surajit Baruah AGM, APDCL +91 s_baruah@yahoo.co.in

9706241436
8 Akhil Ch. Debnath AGM (F &A), +91

APDCL 9435148806
9 Tazuddin Ali AGM (F &A), +91

AEGCL 9435332220
10 Kashi Nath Baishya A.O. +91 baishyakn@rediffmail.com

9864512107
11 A. K. S. Zaman A.O. +91 safiquz_1@rediffmail.com

9864076123
12 Amit Kar AGM (F &A),

APGCL
13 J. K. Saud AGM (Tech), +91 jayanta_saud@yahoo.com

APGCL 943511167
14 R. L. Baruah GM (HQ), AEGCL +91 rathin_02@sify.com

9435198395
15 B. Paul CGM, AEGCL +91 bikashpaul_ghy@rediffmail.com

&PMU, Director 9435018574
16 Manoj Adhikary DGM (Commercial) +91 m_adhikary@msn.com

9864049287
17 N. C. Das GM, APGCL +91 ncdas999@gmail.com

9435559447
18 K. Phatowali CGM, APGCL +91 apgcl_md@yahoo.com
Sl.
Name Designation Contact No. E-mail ID
No
9435004318
19 S. K. Saha CGM (F & A), +91 swapan24saha@gmail.com

APGCL, AEGCL 9435048640
1.2. PRESENTATION
BRIEFING ON CAPITAL INVESTMENT

& BUSINESS/FINANCIAL PLANNING
by
Edna Espos
(International Finance Expert)
TA NO. 7378-IND Capacity Development of Assam

Power Sector Utilities
Guwahati, 09 May 2011
AF-Mercados EMI
TOPICS
1. Overview on Transmission Development Planning

2. Overview on Generation Expansion Analysis
3. Business & Financial Planning
AF-Mercados EMI
OVERVIEW ON TRANSMISSION
DEVELOPMENT PLANNING
AF-Mercados EMI
Bulk Transmission Objectives
! Power delivery
! Economy Interchange between Systems
! Provides a means of sharing generation reserves among systems
! Improved system performance and security
! Increase fuel source diversity
AF-Mercados EMI
Transmission Planning Considerations
! Load Changes (capacity)
! Generation Changes
! Reliability/Power Quality (frequency variation, voltage variation,

harmonics, voltage imbalance, voltage fluctuation and flicker severity,
transient voltage variation) /Safety (electrical code, occupational safety
& health) /Security (transient stability)
! Economics
! Environmental Considerations
! Construction Time Requirements
AF-Mercados EMI
Transmission Planning Considerations
(Cont.)
! Equipment Availability
! Planning Flexibility
! Operating Flexibility
! Technological Advances
! Coordination with Neighboring Systems
AF-Mercados EMI
Transmission Planning Process

! Load Analysis and Forecasting
! Data Collection and System Model Development
! Performance Analysis of Existing System with Forecasted Loads
! Conceptual and Detailed Feasibility Studies of Alternate Designs
! Evaluation of Alternatives
! Selection of Plan to be Used
AF-Mercados EMI

Stages in Transmission Planning
I. Accumulate and Analyze Latest System Data
II. Establish Planning Criteria
III. Define Transmission Options
IV. Evaluate Options
V. Recommend and Report
AF-Mercados EMI

I. Accumulate and Analyze Latest System Data
A. Load forecasts & characteristics

B. Existing & committed Generation & Transmission Data
C. Latest generation plan
D. Available transmission options & constraints
E. Develop line & substation costs
F. Identify existing system problems
AF-Mercados EMI

II. Establish Planning Criteria
A. Line & equipment outages
B. Voltage ranges
C. Stability criteria
D. Design criteria
E. Economic parameters
F. Environmental considerations
AF-Mercados EMI

III. Define Transmission Options
A. Voltage levels
B. Transmission Right-of-Ways & substation locations
C. Multiple single-circuit vs. double circuit
AF-Mercados EMI

IV. Evaluate Options
A. Analytical testing
- Load flows
- Stability
- Short Circuit
B. Economic analysis
- Cash flows
- Present worth
- Sensitivity
AF-Mercados EMI

V. Recommend and Report
A. Reinforcement and Expansion Plan
B. Interconnection Plan
C. Financial Requirements/Investment Plan
AF-Mercados EMI
Analytical Studies
! Short Circuit Studies
! Load Flow Studies
! Stability Studies
! Loss Studies
! Reactive Power and Voltage Control Studies
! Interconnection Studies
! Intersystem Reliability Studies
AF-Mercados EMI
Planning Criteria - Economics

! Discount rate
! Inflation
! Equipment life
! Fixed charges
ROI
Depreciation
Taxes
Insurance
! O & M expenses
! Sales/Loss evaluation
AF-Mercados EMI
Planning Criteria - Environmental
! Routing
! Design
! Construction
! Operation
! Corona-related effects
AF-Mercados EMI
Transmission System Problems

! STEADY STATE
! Thermal overload
! Low voltages
! High voltages
! DYNAMIC
! Transient instability
! Subsynchronous resonance (SSR)
! Loop flow
AF-Mercados EMI
! Uneconomic dispatch
! Reactive support
! Reconfiguring existing
network
! New generation
! Reconductoring
! New line
! Load dropping
Some Solutions
AF-Mercados EMI

! CAUSES
! High reactive load at
the user end
! Long distance
transmission of power
! Heavily loaded lines
! SOLUTIONS
! Add reactive power
! Install new lines
! Use uneconomic
dispatch
AF-Mercados EMI

! CAUSES
! Lightly loaded lines
! Oversupply/
underconsumption of
reactive power
! SOLUTIONS
! Absorb reactive power
! Disconnect lines
! Use uneconomic
dispatch
AF-Mercados EMI

SOLUTION
! PREVENTION
! Set operating limits
! CONTINOUS ACTION
SCHEMES
! Fast response reactive
supply
! REMEDIAL ACTION
SCHEMES
! Switch-in series capacitors
Transient
! Rebalance generation &
Stability load
! Controlled isolating
schemes
AF-Mercados EMI
SOLUTION
POWER FLOW CONTROL
! Install phase shifters
! Open the loop
! Install DC lines
! ADMINISTRATIVE
! Monetary
compensation
! Schedule curtailment
AF-Mercados EMI
Capital Investment Plan
! Follows analytical studies

! Choice of projects based on results of economic
evaluation of alternative options (see methodology in
February workshop)
! Summary of Capital Projects for Next 10 Years (see
Excel template)
AF-Mercados EMI
Overview on Generation
Expansion Planning Analysis
AF-Mercados EMI
Power System Models and Methodology
! Load Modelling
! Generation Outage Probability Modelling
! Probabilistic Reliability Evaluation
! Optimal Capacity Mix Evaluation
! Optimal Production Simulation
! Generation Cost Calculation
AF-Mercados EMI
Optimal Capacity Mix Evaluation and Generation Cost Calculation

With Screening Curve
! Preliminary screening of planning alternatives (e.g., generation
technology).
! Total cost during operating life of the plants are discounted and
plotted against capacity factor values
! Annuity of power plant investment , annual fixed and variable O&M,
annual production costs are added and divided by the annual
generation of each power plant
EXCEL SHEETS ON POWER PLANT DATA, SCREENING CURVES

AND LOAD CATEGORY
AF-Mercados EMI
Capital Investment Plan
! For economic evaluation of other generation

investment projects (see excel worksheets from
February workshop)
! Summary of Capital Projects including expansion
(see excel worksheet)
AF-Mercados EMI
Business & Financial Planning
AF-Mercados EMI
Business Plans & Financial Plans
BUSINESS PLAN
! Business goals / objectives for the plan period
! Plans/strategies for reaching these goals and objectives
FINANCIAL PLAN
! Finances & results of operations for the plan period
! Planning tool in the beginning of period; control device to
measure performance against plan at end of period
PLAN PERIOD FOR THIS PROJECT = 10 YEARS (2012-2023)
AF-Mercados EMI
Business Plan Outline
1. Focus groups
2. Objectives for each focus group
3. Performance Indicator and target for each objective
4. Business Strategies action plans to achieve the
targets
AF-Mercados EMI
Business Plan
Focus Groups From APGCL Business Plan

1. Customer & Community Satisfaction
2. Financial Performance
3. Business Processes
4. Staff & Company Culture
AF-Mercados EMI
Business Plan: Sample Objectives,

Performance Indicators and Targets
Customer & Community Satisfaction
UTILITY OBJECTIVE* PERFORMANCE ANNUAL TARGET
INDICATOR (2012-2023)
APGCL Reliable Electricity No . Of Plant Trips Indicate target
Supply performance per
year
APDCL (1) -same- (1)SAIFI,
(2) Improve SAIDI,MAIPI
service quality (2) Response time
to service
interruption
AEGCL -same SAIFI,SAIDI
MAIPI
See identified gaps in Interim Report 2
AF-Mercados EMI
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VIII-

FINANCIAL P ERFORMANCE
INDICATOR
APGCL Increase revenue MU Generated
base
APDCL Improve Debt Debt Service Ratio
Service Coverage
Ratio
AEGCL Manage Inventory Cost
Controllable Costs
*See identified Gaps in Interim Report 2
AF-Mercados EMI

BUSINESS PROCESSES
APGCL Expand & diversify -MW Capacity
generation -Generation mix
capacity
APDCL Minimize system -% technical loss
loss -% commercial
loss
AEGCL Minimize system -% technical loss
loss -% commercial
loss
See identified Gaps in Interim Report 2
AF-Mercados EMI

Performance Indicators and Annual Targets
STAFF & COMPANY CULTURE
UTILITY OBJECTIVES* PERFORMANCE ANNUAL TARGET
APGCL Align pay scale % of pay to
with industry industry standard
standard
APDCL Align technical and Ratio of staff to
non-technical staff connection
complement with
industry standard
AEGCL Align pay scale % of pay to
with industry industry standards
standard
*See identified gaps in Interim Report 2

AF-Mercados EMI
Business Strategies
! Action plans to achieve objectives

! Refer to Proposed Action plans in Interim Report 2
Examples:
1) Business Process (APGCL) Inventory Control and MIS; retire
old set of thermal units
2) Financial Management hiring of full time Director of Finance
(all utilities) ; acquisition of billing software with receivable
aging, immediate disconnection and temporary connection
billings (APDCL)
3) Human Resources Develop and establish a Human
Resources Steering Committee; enhance performance
appraisal system
AF-Mercados EMI
Financial Plan
Required Plans and Forecasts and Assumptions for Next 10
Years
A. Revenue
! Sales Forecast in MWH/MW. Forecast based on low, medium and
high growth scenarios
! Rate/Tariff Forecast per MWH/KWH/MW/KWper customer
class/category per type of service (e.g. energy/capacity;
distribution, supply and metering; ancillary service; system
operation; transmission). Assume years when tariffs will be
adjusted based on past approvals of AERC . Forecast based on
100%, 75% approvals by AERC (or other estimated based on past
experience) of tariff proposal
! Forecast of Other Income. Forecast base on low, medium and
high scenarios.
! Total Revenue = (Sales Forecast x Rate/Tariff) + Other Income
AF-Mercados EMI
Financial Plan
Required Plans and Forecasts and Assumptions for Next 10 Years

B. Expenditure
! Capital Investment project/outlay per year/funding (from revenue or debt and
annual revenue allocation or debt service);
! Fuel/Power cost based on power supply agreements/fuel supply agreements
and/or international forecasts of fuel prices
! Operating & Maintenance of system/plants net of direct employee cost. Can be
based on comparators (other utilities in Assam/India) or as per cent of total assets
! Employee Cost direct employee cost. Consider plans for additional hiring;
retirements, direct benefits other than salaries, etc
! General Administration also include pension and benefits, taxes, etc.
! Working Capital
! Interest & Finance Charges include amortization of existing and planned debts
AF-Mercados EMI
Financial Plan Template
Item Fiscal Years Ending _(2012-2023)

Utility Fund Beginning Balance In RS and US$
Rate Adjustment In % per type of service/customer class;
indicate year expected
Revenues (Utility service/Other Income) In RS and US$
Expenditures
Power Supply In RS and US$ from load forecast
Operating & Maintenance In RS and US$ from estimates or base on
ratios of comparator companies
Payroll -same-
General Administration -same-
Depreciation In RS and US$ from ASSET REGISTRY
Interest & Finance Charges In RS and US$ from existing and forecast
financial plan
Other Expenses Include CAPEX funding from revenue
Increase (Decrease) in Funds In RS and US$
AF-Mercados
Fund EMI
Ending Balance In RS and US$
END OF PRESENTATION
AF-Mercados EMI
2. 10 YEAR APDCL BUSINESS PLAN
ASSAM POWER DISTRIBUTION COMPANY LIMITED
Business Plan
FY 2011-12-202O-21
DRAFT
JULY 2011
MCADOS I NDPL
TABL O CONTS
I BACKGROUND AND INTRODUCTION

A. SIATIONAL ANALS ............................................................................................. 5
B. OLD ANALS ................................................................................................ 5

C. CONSR DAND OR TRICI ............................................................................ 6
D. PAST SINSS RORMANC ........................................................................................ 7
II. BUSINESS PLAN
MMAR............................................................................................................................. 10
VISION ......................................................................................................................................11
SIN OTI STRI ACTION PLANS AND ORMANC INDICATORS

.......................................................................................................................... 12
TOMR & COMMT SATISACTION ............................................................ 12

NANCIAL PRRMANC ..................................................................................... 13
SIN PROC ............................................................................................. 14
& COMPAN CLR ................................................................................ 16
III. NANCIAL PLAN

IV. ORANATION
DI CAPITAL INT PLAN .......................................................... 40
DI ANNAL D MMAR 0607 ........................................... 44
DI C DINITION O ORMANC INDICATORS................................. 46
DI D NO ON SAL PROTION................................................................. 51
Assam Capacity Development of the Assam Power Sector tilities nal Report Distribution VIII243
AD I - NDPL
2.1. INTRODUCTION
s iness Plan sets the direction for APDL and ill be the imar element of its iness anning and
rformance management frameor in the next ten ears. It ill be fd from the l dget and from
loans and grant financing from a combination of government and non-government sces.
APDL ill monitor its rformance against this iness Plan at the com and ithin each circle and division
on a monthl basis. anagers and staff members ill be made individa accontable for their achievements
throgh Performance Develoment Plans. oards this end the Plan incldes the creation of an ad-hoc
organizational team that ill be resible for the monitoring of the achievements against targets as ell as the
identification and imlementation of corrective actions to ensre that its obectives are achieved b the end of the
Plan iod.
an ill be commcated to all the coms emees sh that ever manager and staff member
rstands hat the com is striving to achieve the com ill achieve that and the as
individals and teams can contribte to the attainment of its obectives. A Performance Incentive cheme for
eml ill be introdced here rards ill be granted on actal erformance that exceeds the targets of this
iness Plan.
Assam acit Develent of the Assam er ctor Utilities nal Rort Distribtion VIII-244
Action Plans Project Plans
Employee Company
Annual
Business
Performance Budget
Plan & Plan
Incentive
Monthly Performance (Where
Review Scheme
Details specific actions Capex required) AF MERCADOS EMI - NDPL
Revenue
Set Performance Situational Analysis
by Circle/Plant; Operating
PlanExpenditure
Monthly review&ofDevelopment
Actual v. Budget with employees
(financial),
Action Plan plus
to execute Strategy by Circle/Division/Plant
Incentive payment
Actual
Company
based Business
Vision
on exceeding
v. Target Planning
key performance
(non-financial) targets&
Completion dates, cost, detailed technical plan/design
Business Objectives and Key Performance Indicators & Targets
Performance Management
Cash flow, Framework
NPV/IRR projections!
responsibility Business Strategies!
2.2. SITUATIONAL ANALYSIS

2.2.1. STAKEHOLDER ANALYSIS
The APDCL Business Plan is designed to meet the needs of its staeholders As such, there needs to be
a clear understanding of what each st older r uires of APDCL and where the company is now
relative to these expectations. These are summaried below. As shown from the table, there exists a
wide gap between the companys performance and staeholder reuirements that lend urgency to
and demand dedicated focus to the implementation of the Strategies and Actions identified in this
Plan.
Current
Stakeholder Stake holders Key Requirements of APDCL
Situation
Shareholder Financial self-sustainability (no budget subsidy ruired)

Government of Assam Profitable (resulting in dividend payment, better
infrastructure or lower electricity prices to customers)
ch
Increased value of company (i.e. assets net of liabilities)
ch
Solvency (meet all liabilities, including employee
obligations)
Satisfy electorate with: too low
o reasonable price of electricity to customers

o Deliver reliable qity electricity supply
Economic development of region through power supply
Customers Low price of electricity Too low

Domestic customers gh uality electricity supply (minimal outages and
correct voltage with minimum variation)
Businesses (Commercial, Can be
Industrial, Agricultural) Friendly and responsive customer service (e.g. new improved
connections, complaints and enuiries)
Government entities Can be
Speedy faults repairs improved
Community Electricity supply to support economic development of Can be

region improved
gher standard of living for households including
electricity supply available, continuous and reliable
Employees Fair pay based on ualifications, experience and industry

norms
Guaranteed retirement benefits
!
Safe woring environment
ll-uipped and hygienic worplace (clean and
comfortable worplace, with all necessary uipment and
materials to do ob)
Reward and recognition for effort and performance
Respect for all employees without discrimination
Suppliers Match demand and supply

AEGCL Open and fair determination of suppliers
Power generators Timely payment for all servicesgoods provided

Service contractors
Material and plant

quipment suppliers
Regulator (AERC) Efficient operation to keep cost of electricity supply low X

Meet customer service standards X
2.2.2. CONSUMER DEMAND FOR ELECTRICITY

Consumer demand for electricity is projected to grow at .5 per annum from F12- resulting in
total consumption of 51. million kh in F 21-22.
A summary of the projected annual growth rate of energy consumption from F 12- to F 21-22 is
presented in the table below.
Table 24 - Growth rates in sales for major categories of customers
Category Projected Growth Rate (%)
Domestic
Commercial 15.
Public Lighting 15
Public ater orks 11.
Agriculture
Industries 2
Bulk Supply: Non Industrial

Customers
Overall 5
The comparative projected sales volume per consumer category for F 12- is detailed in the
following table:
Table 25 - APDCLS Comparative Sales Projection by Consumer Category in MU (FY12-13 and FY21-22)
Consumer FY12-13 Share FY21-22 Share (%)
Domestic 44
Commercial 2
Public Lighting 18 .18
Public ater orks 15
Agriculture 184 1.
Industries 2548
Bulk Supply: Non-

8.
Industrial
Total
In terms of share, the biggest increase will come from Commercial consumers whose share of total
energy consumption grows from in F- to in F-22. The share of Domestic will
slightly increase by 1 while that of Industries will come down to 2. from ..
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution II-
As a result of the tariff structure approved by the AERC, Commercial has the highest revenue yield
per kilowatt hour, at an average of Rupee 5.75 vs. Domestics 4.68 and Industries 4.90/kWh.
2.2.3. PAST BUSINESS PERFORMANCE

APDCL started operating as an integrated company again in FY 2009-10. Its actual loss after tax for
that fiscal year was Rs. 31.44 Crores. The company projects a lower deficit in FY 11-12 of Rs ___
Crores. The deficit will have to be met by subsidy from GOA and/or GOI.
Given the unprofitability of APDCL, returning the company to a break-even or operating surplus
position is the main focus of this business plan for the next ten years. The companys financial
profitability is largely dependent three factors, namely: a) reducing system loss below the level
allowed by the regulator; b) collection efficiency; and, c) tariff that will allow the company to recover
its prudent costs and earn a return on the equity provided by its owner, GOA. The latter will enable
APDCL to reduce its dependence on additional infusion from GOA and to eventually become self-
financing.
In FY 11-12, APDCLs weighted average revenue per unit (at current electricity tariffs for all
customer categories) was Rs. 4.76 per kWh. However, APDCLs projected expenditure for the same
period is Rs. 5.23 per kWh, resulting in a loss of Rs. 0.47 per kWh (before miscellaneous revenue).
Power purchase costs represent 67% of APDCLs total cost base (Rs. 3.68per kWh sold projected for
FY 11-12), whilst depreciation, finance and bad debts costs represent a further 8% of costs (totalling
Rs. 0.45 per kWh). Power purchase costs are partly determined by the market - systems losses make
up the difference while depreciation, interest and finance costs are related to long-term capital
investment.
Controllable costs (where APDCL management have discretion to control) include employee, operation
& maintenance, and general administration costs. These costs represent 25% of total costs, or Rs.
1.35per kWh in FY 11-12. A breakdown of these costs is shown in the following graph.
Employee costs represent the greatest opportunity to control expenditure; however any such
reductions in expenditure are constrained by existing agreements to not reduce staff via mandatory
retrenchment programs. Net staff reductions through the non-replacement of staff that leave due to
retirements and resignations (otherwise known as natural attrition) remain the only valid basis for
reducing employee costs at this time.
At only 1% of total operating costs, expenditure on operation & maintenance is too low and will need
to be addressed urgently to improve the technical and hence business performance of APDCL.
Technical and Commercial Losses remain the most significant impediment to APDCLs business
success. APDCLs aggregate Technical & Commercial Loss (including both transmission and
distribution systems) in FY 10-11 was 38.94%, in FY 09-10 was 36.29%, and in FY 08-09 was
39.07%. In its tariff order for 2009-2010, the regulator set the maximum allowable loss at 22.65% in
FY 2009-10 to be reduced by 1% every year until FY2012-13.
APDCLs current aggregate Technical & Commercial Loss is estimated to be 28.1%. Through improved
system performance (thereby reducing technical loss), and by improved metering/billing efficiency
and collection efficiency, there exists significant scope for APDCL to increase revenue through
reducing this loss.
APDCLs customers experience frequent power outages due to load shedding. Whilst this is largely
due to the unavailability of power supply, particularly due to the winter and early spring months
where hydroelectric generation is constrained, the dilapidated state of APDCLs distribution system is
also partially responsible. This problem will be addressed by continuous investment on rehabilitation
and new equipments based on prior assessment of the systems performance vis--vis standards and
economic evaluation of the alternative solutions in order to determine the least-cost solution to
specific performance problems.
2.3. BUSINESS PLAN SUMMARY

!
Business Plan Summary: FY11-12 to FY20-21
ASSAM POWER DISTRIBUTION COMPANY LIMITED
Objectives Performance Target

Strategies
Indicators
What our
Key Result How our Company will
Company will How our Company will
measure its FY- FY- FY- FY- FY- FY-
Area achieve measure its
success in achieving its 11-12 12-13 13-14 14-15 15-16 16-17
to reach our success in achieving
Objectives
Vision its Objectives
Customer & 1a. Improve the A. Equitably manage load

reliability of shedding between regions
Community electricity
B. Improve asset management
Satisfaction supply & maintenance including use
of GIS
C. Improve system through
renovation &
modernisation1a
D. Augment system capacity to
meet demand only where
critical or profitable
1b. Meet E. Empower & train staff to

Guaranteed resolve customer issues
Standards of immediately
Performance for F. Establish customer service
customer service infrastructure
Financial 2a. Manage G. Modernise financial

controllable costs delegations policy with
Performance whilst meeting increased devolvement of
business objectives authority to management
linked to job description
responsibilities
H. Use natural attrition and

redeployment/retraining to
reduce staffing where not
required
I. Improve financial
management process
including MIS
2b. Grow sales J. Conversion of diesel-driven

base where power consumers to electric
profitable power, including railway &
irrigation sectors
K. Seek financing for new
assets which generate RoI
3a. Reduce L. Improve asset management

technical loss & maintenance including use
of GIS
M. Improve system through
renovation & modernisation
N. Augment system capacity to

meet demand only where
3b. Reduce O. Improve metering process &

commercial loss upgrade/maintain meters
3b(i). Increase P. Improve billing process
billings for energy including computerisation
consumed Q. Control theft with
government legal
enforcement
R. Rationalise tariff categories
to reduce billing errors
3b(ii). Increase S. Drive collection & prevent

collections and theft in rural areas
reduce bad debts
T. Implement & monitor
consistent disconnection
policy with in-house vigilance
team
U. Introduce new payment

methods with I&CT
V. Liquidate long-standing
arrears including municipal,
corporation & town
committees
. latten the load W. Establish in-house

curve between management consulting cell
peak and off-peak to run pilot projects for DSM
demand intervention
Establish X. Establish and implement

consistent, MIS/IT strategy & policy
pragmatic and
integrated Y. Improve materials
processes & management process
systems for IT, including MIS
materials, financial Z. Improve financial
and human management process
resources including MIS
management
AA. Improve HR management
process including MIS
BB. Implement training plan &
implement policies/MIS
simultaneous
. Improve CC. Implement training plan &

business and implement policies/MIS
technical simultaneously
skills amongst DD. Recruit & utilise engineers
managers and with management
qualifications
professional staff
EE. Implement career &
succession planning including
internal promotion and fast-
track promotion for high
achievers
Balance FF. Introduce b Description for

responsibility, all staff with PIs
authority and
GG. Modernise financial
accountability for delegations policy with

performance at all increased devolvement of
levels authority to management
linked to job description
responsibilities
HH. Introduce annual
Performance evelopment
Plan with PIs for all staff
. Pay staff II. Annual review of employees

equitably as per salaries in line with Indian
Industry tandard electricity industry salaries
and according to
performance jj. Introduce Performance
Incentive cheme linked to
employee Performance Plan
Ensure staff Introduce safety

safety and build a proceduresmanual with training
high- morale monitoring
workplace
LL. Ensure appropriate safety
equipment available at all times
MM. Conduct periodic medical
fitness checks including
compulsory
redeploymentretirement for
unfit employees
NN. Create informal culture

between all staff and managers
!
!
A financially-viable, customer-friendly company delivering reliable, high quality
and reasonably priced electricity distribution service to the people and businesses
of Assam
2.3.1. VISION
To achieve our Vision, we will:
1. Develop our infrastructure

2. Adopt appropriate technology
3. Inspire and empower our employees
4. Efficiently manage our material & human resources
2.3.2. BUSINESS OBJECTIVES AND PERFORMANCE INDICATORS

APDCL will focus on four key strategic areas during the plan period. These are:
a) Customer & Community Satisfaction
b) Financial Performance
c) Business Processes
d) Staff & Company Culture
a) CUSTOMER & COMMUNITY SATISFACTION

Objective: To provide reliable and high quality electricity supply that is at par with industry
standards.
Strategies and Action Plans:

1a. Improve the reliability of electricity supply
This objective means minimising both the frequency and duration of interruptions to electricity supply
for all of APDCLs customers.
1b. Meet Guaranteed Standards of Performance for customer service

This objectives means delivering customer service in accordance with the Assam Electricity
Regulatory Commissions Guaranteed Standards of Performance, including customer related services
and the quality of power supply.
Consumer related services pertain to:
fuse-off /fault calls;
line breakdowns;
replacement of failed distribution transformers;
stopped/defective meters;
replacement of damaged service line; and
complaints about customers bills.
The quality of power supply pertains to:

voltage variation limits;
neutral voltage displacement;
frequency deviation; and
provision relating to safety and electricity supply
Action Plans
APDCL will measure its success in achieving its Customer & Community Satisfaction objectives by
applying the following performance indicators and targets:
Performance Indicators Target

How our Company will
Action Action FY FY FY FY FY
Strategies measure its
Plans Details
success in achieving its 11- 12- 13- 14- 16-
Objectives 12 13 14 15 17
1a. Improve the 1a (i). Customer Average

reliability of Interruption Frequency Index
electricity supply (CAIFI)
1a (ii). Customer Average

Interruption Duration Index
(CAIDI)
1b. Meet 1b. % of Performance

Guaranteed Standards met
Standards of
Performance for
customer service
Note: Precise numerical target for CAIFI and CAIDI will be set once actual performance for FY11-12 is accurately
computed.
The definitions of each of these Performance Indicators have been provided as Appendix C to the
Business Plan.
b) FINANCIAL PERFORMANCE
This focus area deals with what APDCL will achieve in terms of the financial performance of the
company.
Of vital importance is for APDCL to be financially viable in the future, such that it is not a burden to
its shareholder (the Government of Assam) and provides a financial return to its shareholder if its
shareholder so wishes.
Objective: Achieve financial profitability and sustainability during the Plan period
Accordingly APDCL has two key objectives for Financial Performance:
2a. Manage controllable costs whilst meeting business objectives

This objective means that operating costs that controllable operating costs (namely Employee,
Operation & Maintenance, and General Administration) will be carefully managed to ensure that
business objectives are met whilst ensuring an efficient use of resources without wastefulness.
Management includes ensuring financial expenditure decisions are made in accordance with the
Business Plan and Budget and with appropriate internal controls, and ensuring that all managers are
made accountable for the funds they spend.
Please insert here ther Action Plans and Details.
2d. ow sales base where profitable

This objective means that APDCL will invest in projects to increase sales, where such projects
generate an acceptable financial return for the company. This includes expanding sales where current
system capacity can be used (hence not requiring significant additional capital investment) or where
the cost of increasing system capacity creates an acceptable return on investment.
Please indentify others (if necessary)
APDCL will measure its success in achieving its Financial Performance objectives by applying the
following performance indicators and targets:
Performance Target
Indicators
Action How our Company FY FY FY FY FY
Strategy Action Plan
Details will measure its
11- 12- 13- 14- 15-
success in achieving 12 13 14 15 16
its Objectives
2a. Manage a) Reduce 2a. Operating Costs per

controllable costs technical kWh sold(Employee
whilst meeting loss O&M costs)
business objectives
b) Increase
billing
efficiency
2b. row sales base 2b. Sales (MU)

where (excluding internal
consumption)
profitable
iness Plan.
c) BUSINESS PROCESSES
In order for APDCL to achieve its Customer & Community Satisfaction and Financial Performance
objectives, it will achieve the following in the areas of usiness Processes. This focus area deals with
what APDCL will achieve in terms of the internal business processes of the company, including the
acquisition and utilisation of assets and resources, application of policies and procedures, and the
adoption of information and communications technology and systems.
iness processes include both technical processes, such as the construction and maintenance of
electricity distribution assets and commercial management processes, such as billings, collections,
financial, human resource, materials and IT management.
Satisfaction of customers and the community, and strong financial performance, is not possible
without efficient and effective business processes. Accordingly, APDCL has four key objectives for
iness Processes:
Objective: Adopt industry est Practices for efficient and effective usiness Processes in the following
areas:
1. Project Planning and Management
2. Operations, Maintenance and Asset Management
3. Commercial Practices and Management
4. Financial Management and Accounting Systems
Management Information System
3a. Reduce technical loss
AF MCADS EM P L
s objective means that APDCL will ee the loss ene om the electicit distision
stem, om the point o inteace with the tansmission stem to the point o delive to the
stome.
3b. dce commecial loss

s objective means that APDCL will ee the loss eve to acts othe than technical
loss o eneg thogh the distibtion sstem. his will be achieved b csing on the llowing two
bPobjectives
3b (i). case billings eng consmed

s sPobjective means that APDCL will incease billings to ctoms, billing ctoms
accatel eng actall consmed, and b accatel applng the eglated ti ates
each cstom.
s sPobjective incopoates both the meteing pocess (accate ecoding each cstomes
actal consmption) and the billing pocess (accatel peping and pesenting a billing to each
stome based on thei actal conmption).
case collections and edce bad debts

3b (ii).
s sPobjective means that APDCL will incease the ams cash collected om ctoms as
pament thei electicit bills, both cent bills and past aeas.
s sPobjective also means that it will e bad debts (i.e. debts o cstomes that ae
consideed nable to be collected) b means o eective collection and edit management pocesses.
3c. Flatten the load cve between p and oPpea demand

s objective means that APDCL will ee the tional dience between pea sstem
demand and Ppea sstem demand, t load management, timePPda ice setting and the
modiication o the consmption pattens o cstomes. achieving this objective APDCL will edce
the need o s sstem expansion and enable a bette standad o electicit ppl with the
ent asset base. Fo this ppose emphasis is to be given to the load which is nomall sed in da
& o pea time which ae nothing bt the indstial load.
3d. Establish consistent, pgmatic and integted pcesses and sstems o , mateals,
ancial and hman esoces management
s objective means that APDCL will imove its commecial management ocesses and sstems to
icientl and ectivel manage its esces, inclng imation technol, mateials, inances,
and hman esces. he objective is to have pocesses and stems that
consistent (i.e. applied withot vaiation thoghot the compan)
agmatic (i.e. can be implemented in a wa that natall matches the actal opeations
the com and
tegted (i.e. whe all these aspects o commeial management wo togethe o
the same pose within the compan).
ocesses and stems incl policies and oces, management imation stems,
ganisational sttes and sting, as it elates to each the above.
Action Plans o

APDCL will mease its scess in achieving its iness Pocess objective appling the ollowing
pemance indicats and tagets
Performance Target
How our
Action Action Company will FY FY FY FY FY
Strategy
Plan Details measure 11- 12- 13- 14- 15-
its success in 12 13 14 15 16
achieving its
Assam Capacit Development the Assam Power Sectr Utilities Final eport Distribtion 256
Objective
3d. Establish consistent, 3d. % of Business

Processes
pragmatic and integrated
processes and systems for IT, covered by Policies
materials, financial and human and Procedures
resources management
The definitions of each of these Performance Indicators have been provided as Appendix to the
Business Plan.
d) STAFF & COMPANY CULTURE

In order for APDCL to achieve its Customer & Community Satisfaction and Financial Performance
objectives, we will achieve the following in the areas of Staff & Company Culture. This focus area
deals with what APDCL will achieve in terms of the management and development of its most
important resource, its staff. This focus area includes how staff will be managed, remunerated,
trained and developed, and how the APDCL will think and act as an organisation to achieve its
objectives.
Satisfaction of customers and the community, and strong financial performance, is not possible
without a capable and motivated workforce working together. Accordingly, APDCL has four key
objectives for Staff & Company Culture
Objective: Build technical and managerial capacity of the staff and enhance staff morale
Strategies:
4a. Improve business and technical skills amongst managers and professional staff
This objective means that APDCL will improve the skills of its managers and professional staff
(engineers and other professional staff) so that they can be effective managers and advisors to
improve the performance of APDCL.
Business skills refer to human resource management, financial management, customer service
management and all other skills necessary to achieve high customer satisfaction, financial
performance and business efficiency.
Technical skills refer to skills specific to professional staff members positions within the company,
and include ensuring that such staff members have the necessary knowledge and competency to
apply modern techniques and technology in their professional area.
Action Plans and Details??????
4b. Balance responsibility, authority and accountability for performance at all levels
This objective means that APDCL will:
ensure that senior managers and staff alike are clearly made responsible for achieving specific
things in the running of the business, and that these managers/staff are aware of their
personal responsibilities;
ensure that senior managers and staff are given appropriate authority to act in accordance
with their responsibilities and in accordance with company policies); and ensure that senior
managers are made accountable for the performance resulting from
the decisions and actions that they have taken to meet their responsibilities including
recognition for good performance.
Accountability for performance does not mean that poor performance, despite good efforts, will be
punished, but rather that managers and staff will be responsible for learning from mistakes and
taking corrective action.
Action Plans and Details
4c. Pay staff equitably as per Industry Standard and according to performance
This objective means that APDCL will ensure that staff are paid fairly, with consideration to:
actual salaries paid to similar employees within the electricity distribution sector of India; and
the performance of individual employees within APDCL
Both of these factors will be balanced to ensure that employees receive a fair remuneration, in line
with their responsibility, experience and skills, but balance with their individual contribution to the
success of APDCL.
4d. Ensure staff safety and build a high-morale workplace

This objective means that APDCL will minimise risk to their physical or mental health and safety of
staff whilst in the workplace, with consideration to:
the documentation, understanding and application of workplace procedures;
the condition and availability of safety equipment and other infrastructure; and
the fitness of staff as required to safely perform the duties of their position.
This objective also means that APDCL will build an organisation with high staff morale, such that staff
is motivated to work in a positive and constructive team environment.
APDCL will measure its success in achieving its Staff & Company Culture objectives by applying the
following performance indicators and targets:
Performance Target
Strategy Indicators
What our How our
Company will Action Plans Action Company will
(see examples below) Details measure its
achieve to FY- FY- FY- FY- FY-
reach our success in
11- 12- 13- 14- 15-
Vision achieving its
12 13 14 15 16
Objectives
4a. Improve a) Provide training on Attach the 4a. % of staff

business and (specify subjects) training plan (Manager &
technical skills above)with
b) Recruit new staff with Summarize
amongst skills as per Job
managers and competence in (specify recruitment Description (as
competences required) schedule (by
professional staff per Skills Audit)
target year
and number to
be recruited ,
by
competence)
Balance How How of

responsibility, employees with
authority and annual
accountability for Performance
performance at Plan and
all levels Performance
Appraisal
. Pay staff How How (i). Percentile

equitably as per ranking of
Industry company
Standard and salaries with
according to industry survey
performance
(ii). of
employees
participating
in Performance
Incentive
Scheme
nsure staff How How ii). Injuries

safety and build per 1,
a high-morale employees
workplace
per month
ii). of
staff with
"good" morale
rating or higher
(as per Staff
Survey)
Note: Precise numerical target for Injuries per 1, employees per month will be set once actual performance
for11-12 is accurately computed.
Business Plan.
2.3.3. BUSINESS STRATEGIES

In order for APDCL to achieve its key objectives, the company must implement strategies. Strategies
are how the APDCL will achieve its objectives. A Strategy is an overall plan of action that will be
implemented to achieve an Objective.
This Business Plan identifies 35 key strategies required for the company to reach its ision and meet
its Objectives. ach of the strategies is linked to an objective, across each of the four key focus areas.
In some cases, a single strategy will support the achievement of two different objectives.
a) CUSTOMER & COMMUNITY SATISFACTION

APDCL will implement the following Strategies in order to implement its Objectives for Customer
Community Satisfaction:
Strategies Action Plans
1a. Improve the reliability of electricity supply A. Equitably manage load shedding between
regions
B. Improve asset management maintenance
including use o IS
C. Improve system through renovation
modernisation
D. Augment system capacity to meet demand
only where critical or profitable
Meet uaranteed Standards of E. Empower train staff to resolve customer

Performance for customer service issues immediately
F. Establish customer service infrastructure
There are six key strategies that APDCL will implement to achieve its Customer Community
Satisfaction Objectives, as follows:
A. Equitably manage load shedding between regions

APDCL will put a strategy in place to ensure that where load shedding is required, the impact is
shared such as to maximise power availability across all customers in all regions
This will include:
Measuring actual customer outages (by frequency and duration) across the STATE due to load
shedding;
Working with AEGCL and its SLDC to implement a planned and scheduled process for load
shedding to ensure fair distribution of outages;
Implementation of SCADA and other system control infrastructure and processes to enable
better control of load shedding and optimisation of available power. Work has already been
taken to bring the Guwahati city under SCADA.
The Action Plan for Equitably Managing Load Shedding will be prepared to execute this strategy.
B. Improve asset management & maintenance including use of GIS

In order to improve the reliability of the system, the APDCL will improve the performance of its
distribution system assets by:
Identify fixed assets in service, as owned/operated by APDCL;
Build and populate a register of these identified fixed assets, using a Geographical
Information System (GIS);
Assign values to each fixed assets;
Assess the condition of system assets to facilitate replacement decision analysis;
Implement an Asset Management Process, including a computerised Asset
Management System, such that asset maintenance is comprehensive and efficient, and is scheduled
according to the life cycle of assets or emergency requirements.
The Action Plan for Improving Asset Management & Maintenance will be prepared to execute this
strategy.
C. Improve system through renovation & modernisation
Cost
Sl. Finance
Project FY 10-11
No. Source
(Rs.
AF ERCADOS I - NDPL
Lakhs)
1. Augmentation of existing ADB

distribution system
of existing system PFC
3. Enhancement of system
infrastructure by constructing new
Sub-Station, lines etc. To overcome
the constraint of power distribution

and reduce the technical losses.
WB
4. Implementation of government
schemes for making electricity
available to all section of the people
of the state
Energy auditing with implementation
of SCADA for better load
management
Further details of the funding and nature of these projects can be found in the Capital Investment
Plan in Appendix A, or with reference to the individual Project Plans for each of these projects.
D. Augment system capacity to meet demand only where critical or profitable

ven the poor condition of the APDCL distribution system, resulting in poor system reliability and
quality of supply, and high technical losses, this Business Plan places the restoration and
modernisation of existing system assets as a higher priority than system augmentation. oreover,
due to the unprofitable situation of APDCL at present, the ability for APDCL to heavily invest in new
system capacity is limited and must be used judiciously and sparingly.
However, given APDCLs customer demand is growing at
p.a., and given a need for rural
electrification, there is a need to augment current capacity where critical to meet social and economic
needs. This includes rural electrification.
Further details of the funding and nature of these projects can be found in the Capital Investment
Plan in Appendix A, or with reference to the individual Project Plans for each of these projects.
E. Empower train staff to resolve customer issues immediately

APDCL will implement a strategy to provide staff with the authority and skills necessary to deal with
the problems or complaints of customers without delay, hence leading to customer satisfaction.
This strategy will include:
Establishing new policies and procedures for staff dealing with customers, including new
delegated authority to handle customer problems on-the-spot;

Establish a rapid response customer complaints-handling process, such that all customer
complaints are dealt with quickly, and with immediate escalation to the next senior level of
management for resolution;
Providing customer service training to all staff that deal with customers (please refer to the
APDCL Training Plan for more information).
The Action Plan for Empowering Training Staff to Resolve Customer Issues Immediately will be
prepared to execute this strategy.
F. Establish customer service infrastructure

APDCL will implement a strategy to develop the necessary infrastructure to enable staff to provide
excellent customer service.

Providing portable computing for senior managers in field offices to access customer
information and assist customers in the field
Establishing a customer information system (database) to provide staff with quick and useful
access to customer data immediatel
Establishing a customer feedback system for recording and tracking customer complaints and
problems.
The Action Plan for Establishing Customer Service Infrastructure will be prepared to execute this
strategy.
b) FINANCIAL PERFORMANCE
APDC will implement the following Strategies in order to implement its Objectives for Financial
Performance:
Objectives
Strategies
What our Company will
How our Company will achieve its Objectives
achieve to reach our sion
2a. anage controllable costs G. dernise financial delegations policy with increased
whilst meeting business devolvement of authority to management linked to job
objectives description responsibilities
H. e natural attrition and redeployment/retraining to reduce
staffing where not required
I. Improve financial management process including IS
2b. Grow sales base where Conversion of diesel-driven power consumers to electric
profitable power, including railway irrigation sectors
Seek financing for new assets which generate RoI
There are five key strategies that APDC will implement to achieve its Financial Performance
Objectives, as follows:
G. dernisefinancial delegations policy with increased devolvement of authority to

management linked to job description responsibilities
In order for costs to be well controlled, it is important that the managers with operational
responsibilities (as defined by their job descriptions) be given the corresponding power to authorise
expenditure for those operational needs. However, all expenditure will be managed within the
Companys budget, and managers will be accountability to senior management for both the
expenditure they have incurred and the operational performance achieved as a result.
There is no Financial delegation policy still adopted by APDC for other than D, however the current
financial delegations policy (i.e. the policy used to determine the appropriate level of management to
authorise expenditure) used by APDC was of the than ASEB designed in thes (without
accordance by APDCL Board). Since that time inflation and a changed organisational structure has
made this policy antiquated.
Accordingly, APDCL will implement a strategy to update the financial delegations policy, which will
include:
Review of operating expenditure requirements at the divisional and circle management levels,
in order to facilitate effective management
Design of the new financial delegations policy accordingly
Communication and training of management and staff in the use of the new policy.
The Action Plan for odernising the Financial Delegations Policy will be prepared to execute this
strategy.
MERCADOS EMI - NDPL
Use natural attrition and redeploymentretraining to reduce staffing where not required
Employee costs is the largest element of APDCLs operating expenditure, being of controllable
operating costs (i.e. Employee Operation Maintenance General Administration expenses) in
11-12. In order for APDCL to control its operating expenditure, it must have a clear strategy to
maintain the staffing it requires to meets its business obectives, but to reduce staffing where it is not
required within the boundaries of legislation and agreement with unions.
To this end, APDCL will implement a strategy to ensure that will identify positions that are not
required for the operation of the business, and will utilise natural attrition (i.e. the normal pattern of
employee retirement and resignation that occurs every year) to reduce staffing as appropriate.
Redeployment combined with retraining will be utilised to reassign staff members to other
departments where additional staff members are required.
Design and implementation of a review process (to be run by the R department) to regularly
identify where positions are no longer required to meet business needs;
Design and implementation of a redeployment program, such that priority is given to suitable
employees to be reallocated into vacant positions in other departments;
Retraining programs for staff-requiring redeployment, such that these staff are appropriately
skilled to undertake new positions where required.
The Action Plan for Using Natural Attrition and RedeploymentRetraining to Reduce Staffing will be
I. Improve financial management process including MIS

APDCL will implement a strategy to improve financial management throughout the company,
including accurate and timely financial reporting by business unit, such that these financial reports
are available shortly after the end of each period, and that such reports contain accurate and useful
information to managers regarding their financial performance.
Design and implementation of a computerised financial management information system
(refer to the APDCL IT Implementation Strategy);
Design, implementation and communication of financial management and accounting policies
and procedures;
Monthly financial reporting and performance review.
The Action Plan for Improving inancial Management Process will be prepared to execute this
strategy.
Conversion of diesel-driven power consumers to electric power, including railway irrigation

sectors
APDCL will implement a strategy to convert diesel consumers to electricity consumers, where
possible. Particular emphasis will be given to revenue opportunities that have high marginal
profitability, due to the fact that existing infrastructure can be used substantially to service this
additional demand. This exists for new customers in off-peak periods, specifically daytime load.
The railways and irrigation sectors are two examples of diesel energy consumers that, if electrified,
would be profitable electricity customers for APDCL. This is due to the fact that these industries
consume most of their energy during the daytime off-peak period. Moreover, the electrification of
such sectors will provide a positive environmental benefit to the community (e.g. by reducing air
pollution and fossil-fuel consumption).
Influencing the Government regarding railway electrification;
Influencing and establishing incentives for irrigators to convert to electric pumps (rather than
diesel pumps at present).
The Action Plan for Electrification of Diesel-Driven Power will be prepared to execute this
strategy.
Assam: Capacity Development of the Assam Power Sector Utilities nal Report Distribution VIII-
K. Seek financing for new assets which generate RoI

In order to increase its profitability and business performance, APDCL will borrow to fund system
rehabilitation and expansion, as well as to fund new information and communications technology to
support better business management. Whilst grant and concessional loan funding is available from
state and central governments and multi-lateral institutions (e.g. Asian Development Bank), APDCL
will also seek financing from commercial borrowing institutions (e.g. Power Finance Corporation)
where such projects generate significant profitability.
Developing a Financial Plan, including projections of Company profitability and cash flow
Design and implementing a Financial Evaluation process for all prospective investments,
including computation of the projected Net resent alue and Return on Investment (RoI),
compared with a corporate target for RoI.
The Action an for Seeking Financing for New Assets hich enerate RoI will be prepared to execute
this strategy.
c) BUSINESS PROCESSES
DC implement the following Strategies in order to implement its Objectives for Business
ocesses:
Objectives Strategies
at our Company will achieve How our Company will achieve

to reach our ision its Objectives
3a. Reduce technical loss B. Improve asset management maintenance including use
of IS
C. Improve system through renovation modernisation
D. Augment system capacity to meet demand only where
3b. Reduce commercial loss Improve metering process upgrade/maintain meters
M. Improve billing process including 100 computerisation

3b(i). Increase billings for energy
N. Control theft with govt legal enforcement
consumed
O. Rationalise tariff categories to reduce billing errors
3b(ii). Increase collections and Drive collection prevent theft in rural areas
reduce bad debts Implement monitor consistent disconnection policy
including in-house
vigilance team
R. Introduce new payment methods with ICT

S. uidate long-standing arrears including municipal,
corporation town
committees
3c. Flatten the load curve between T. Establish in-house management consulting cell to run
peak and off-peak demand pilot projects for DSM intervention
3d. Establish consistent, pragmatic U. Establish and implement MIS/IT strategy policy
and integrated processes systems
for IT, materials, financial and human Improve materials management process including MIS
resources management Improve financial management process including MIS

!" improve HR management process including MIS
Implement training plan implement policies/MIS

simultaneously
AF MCADOS EMI - NDPL
There are key strategies that APDCL will implement to achieve its Business Processes
Objectives, as follows:
B. Improve asset management & maintenance including use of GIS
The implementation of this strategy will improve asset performance over time, and hence reduce the
technical loss of energy through the distribution system.
fer to the previous discussion of this Strategy in the Customer & Community Satisfaction section.
Improve system through renovation & modernisation
C Improve system through renovation & modernisation

technical loss of energy through the distribution system.
D. Augment system capacity to meet demand only where critical or profitable

technical loss of energy through the distribution
E. Improve metering process & upgradmaintain meters

A critical strategy for reducing the commercial losses and improving the cash flow of APDCL is to
significantly improve the metering process, being the accurate measurement of energy consumed by
every customer.
The standardisation of metering processes, through the review of existing policies, procedures
and practices, and the design and communication of new policies and procedures;
Metering standardisation including standardising the location of installation at customers
premises and protection from meter tampering;
Installation of electronic metering for all business customers, and progressively residential
customers;
Creation of stores of replacement meters at all field offices, so that replacement of defective
or damage meters can take place without delay;
view of staffing to ensure sufficient coverage for metering in all locations, including
consideration of use of contracted meter readers where necessary;
gular auditingmonitoring of metering activities at all field locations.
Funds may be allotted to strengthen customer metering in the future through any scheme or any
other financing.
F. Improve billing process including computerisation

Along with an accurate metering process, a significant improvement in billing process is critical for
APDCL to improve its revenue and commercial performance. All energy consumed (as metered) needs
to be completely billed, on a timely basis, and all information about billing must be captured so that
collections can be monitored (and non-payment acted on).
The strategy will include:
The standardisation of billing processes, through the review of existing policies, procedures
and practices, and the design and communication of new policies and procedures;
The computerisation of billing and customer information to minimise billing computation
errors and to enhance data capture;
Training for staff involved with the billing process, in terms of the consistent application of
Assam: Capacity Development of the Assam Power Sector tilities Final eport Distribution VIII-
AF M CADS EM L
policies and ocees and the se o the comptesed billing sstem
gla aditingmonitoing o billing activities at all ield locations.
tdction o ppaid billing sstem.
Unde P to pgade cstome meteing o high vale consme in the 1st phase is taen and
the est it is in the 2nd phase.
G. Contol thet with govenment legal enocement

Along with implementing accate meteing and billing ocesses, it is also necessa to ense that
thet does not occ eithe thgh tampeng with mete o t nonthised connection to
the distbtion netwo. he Electcit Act pvides stngent penalties o sch activities, howeve
to date the stct enoement o laweaes in APDCLs distition aea is lagel nonexistent.
s state is to wo with and inlence the Govenment o Assam to enoce the illegal thet o
electicit his stateg will incld
Monitoing thet in all egions b taining and commissioning APDCL sta
Petitioning the Gnment Assam magistial pows (limited to encement the
ovisions the Electicit Act) APDCL seni manages, to osecte electicit thet
ting and icising ene e acoss APDCLs distition aea, inclng accessing
govenment it data
Condcting a pblic elations campaign to inm the commnit the consences
electicit tht, both in tms the penalties and the cost tht to lawabiding cstoms.
Action Plan Contolling t with Govenment Legal cement will be epaed to execte
this stteg.
G. tionalise tai categoies to edce billing eos

At esent, thee ae a be o tai categoies in domestic secto. n ode to incease the
accac billing, APDCL will s to inlence the Assam Electicit eglato Commission (AE C)
via its annal ti petition to simpli the ti stcte. his stateg will inclde the eview the
existing ti stcte domestic categ and the ecommendation an altnative, steamlined
ta stte to the C
Action Plan ationalising i Cateies will be epaed to execte this state
ive collection & pevent thet in al aeas

Collections in al aeas ae a paticla poblem in inceasing collections and edcing bad debts,
to the seasonal nate income in edominantl aictal commties. n these egions,
income is lage available in the posthavest peiod the ea (ovembeDecembe).
APDCL will taget collections in al aeas in ode to impove its collection eienc and edce
s in these commnities. his stateg will incld
Establishing singlewindow pament ding the posthavest peiod to collect all accts in
s
Enoce nonpament t instant disconnection and legal ecement ocesses.
Action Plan Diving Collection & eventing t in al eas will be epaed to execte
this stteg
plement & monito consistent disconnection polic inclding ine vigilance team
A e element o inceasing collections and avoiding bad debts is to consistent app a
disconnection polic tt APDCL. Electicit s is a ceditbased iness ctomes
conme the podct beoe the pa. o this end, it is vitall impotant that APDCLL enes that
nonpaing ctomes ae disconnected bee a lage debt is accated, in excess the
stomes twomonth secit deposit.
APDCL will implement a state to design and implement a polic o disconnection compawide,
and to ense the polic is complied with tt all cicles, divisions and svisions. s
stateg will inclde
Review of existing disconnection policies/practices, and design of a new disconnection policy

and procedures;
Communication of the new policy and procedures with all field staff, including training , where
required;
Update of debtors ledgers and accounting policies/procedures to ensure accurate records are
maintained;
As part of a computerised Customer Information System, computerisation of the customers
debtors ledger;
Establishing an in-house vigilance team to monitor compliance with the policy, including
regular review of debtors balances.
The Action Plan for Implementing & Monitoring Consistent Disconnection Policy will be prepared to
execute this strategy.
J. Introduce new payment methods with Information & Communication Technology

APDCLs collections will be enhanced where customers are provided with greater Choice and
convenience with regard payment of their electricity bill. To this end, APDCL will implement a strategy
to increase the payment options for customers including the use of information and communications
technology to provide modern payment methods.
Some payment methods to be considered for implementation include:
Automated Direct Debit, where customers authorise APDCL to automatically deduct payments
directly from the customers bank account;
Telephone payments using credit or debit cards;
Online payment through a APDCL internet site;
Face-to-face payment through non-APDCL channels, including bank and post office branches.
The Action Plan for Introducing New Payment Methods will be prepared to execute this strategy.
K. Liquidate long-standing arrears including municipal, corporation & town committees

The Assam power distribution company limited currently hold net accounts receivable of Rs.264
Crores (as at 31/03/11), which equates to an average of 3.5 months sales. With such a high level of
accounts receivable debt, a key for APDCL to improve its cash flow is to liquidate past debts. Of
particular note is the high amount of arrears held with municipal and town committees, as well as
state corporations.
To implement this strategy, APDCL will:
Review debtors records to identify all existing debtors with balances in excess of six months
of sales in arrears;
For government-related customers, petition the Government to liquidate all arrears in FY
2010-2011;
For private customers, issue demand for payment of arrears and apply the company
disconnection policy where payment is not received;
Facilitate payment plans with customers unable to pay make full restoration immediately.
The Action Plan for Liquidating Long-standing Arrears will be prepared to execute this strategy.
L. Establish in-house management consulting cell to run pilot projects for DSM
In order to maximise funding for system renovation and modernisation, and minimise funding
required for system augmentation to meet growing demand, APDCL will pursue a strategy of demand-
side management.
This strategy will include the establishment of a management consulting cell within APDCL, to work
on pilot projects for reducing peak system demand. Where pilot projects prove to be successful in
mitigating demand, this management consulting cell will facilitate wider implementation company-
wide.
AF MCADOS EM L
The Action Plan Establishing an ne Management Consting Cell DSM will be epaed to
execte this stateg
M. Establish and implement MT state & polic

The e Management mation stems is an essential component to modeniing the
commecial management o APDCL. APDCLs manages and sta need aate and timel
inmation to make decisions, to pocess and contol compan esoces, to manage sta and
timatel to seve ctomes well. To this end, APDCL will implement a companwide stateg to
implement inmation technolog to stengthen management pocesses thoghot the compan.
This state will incl consideati the aiate imation and commcations technol
qid o eective
Mateials Management
Financial Management
man esoces Management
Asset Management
stome lationship Management.
The APDCL T mplementation Plan will be epaed to exece this state.
pve mateals management pcess inclding M

APDCL will implement a stateg to impove mateials management thoghot the compan, to
eliminate wastage and tht matials, and to ense matials e sed in the most icient w
to achieve the compans bsiness objectives.
This state will incl the design and implementation a matials management inmation
stem, policies and pocedes, and peomance monitoing and contol o
ocement management, inclng management aisation chases in line with the
compan inancial delegations polic, spplie selection and negotiation, pchasing, eceipt
matials and ent matials in accdance with eed tms
vento management, inclding the wahosing o mateals, issance o mateals m
the sto based on athosation, and aate invento acconting
ks management, as a as it applies to the sppl and se o mateials on compan
ojects.
The Action Plan moving Mateials Management ocess will be epaed exectes this
stateg.
O. pve inancial management ocess inclng MS

APDCL will implement a state to imove an esoce management to the compa,
to ens the consistent management o sta companwide, with the aim o developing a high
peming and highmoale oganisational cte.
This state will incl the design and implementation a an esces management
inmation sstem, policies and pocedes
Emploee peomance management
aining and development
dsal lations
qal emploment tt and antidiscimination in the wkplace
Emploee ievance handlin
Occpational health and saet
mneation inclding peomance incentives
citment and selection
cession planning and intenal omotion management.
Assam Capacit Development the Assam Powe Sect Utilities Final epot Distibtion 268
The Action Plan for Improving HR Management Process will be prepared to execute this strategy.
P. Implement training plan & implement policies/MIS simultaneously

APDCL will implement a Training Plan to develop the business and technical skills of its managers and
staff, to ensure that these employees are equipped to meet business objectives of the company,
including the use of new Management Information Systems and corporate policies and procedures.
Training will be conducted at the same time the implementation of new systems, policies and
procedures, to ensure that employees can practice the skills learned immediately.
Refer to the APDCL Training Plan for the execution of this strategy.
d) STAFF & COMPANY CULTURE

APDCL will implement the following Strategies in order to implement its Objectives for Staff Company
Culture:
Objectives Strategies
How our Company will achieve to What our Company will achieve
reach our Vision its Objectives
4a. Improve business and Implement training plan & implement policies/MIS
technical professional staff skills simultaneously
amongst managers and
Y. Recruit & utilise engineers with management
qualifications
Implement career & succession planning including
internal promotion and fast-track promotion for high
achievers
4b. alance responsibility, AA. Introduce ob Description for all staff with KPIs
authority all levels and
G. Modernise financial delegations policy with increased
accountability for performance at
devolvement of authority to management linked to job
description responsibilities
Introduce annual Performance & Development Plan
with KPIs for all staff
4c. Pay staff equitably as per AC. Annual review of employees salaries in line with
Industry Standard and according Indian electricity industry salaries
to performance
AD. Introduce Performance Incentive Scheme linked to
employee Performance Plan
4d. Ensure staff safety and build AE. Introduce safety procedures/manual with training &
a igh-morale work place monitoring
AF. Ensure appropriate safety equipment available at all
times
AG. Conduct periodic medical fitness checks including
compulsory redeployment/retirement for unfit
employees
.Create informal culture between all staff &
managers
AI. se 360 degree survey as part of senior
management performance review
There are 13 key strategies that APDCL will implement to achieve its Staff & Company
Culture Objectives, as follows:
Implement training plan implement policiesMIS simultaneously

The implementation of this strategy will lead to the improvement of business management and
technical sPills of managers and staff in APDCL
Refer to the previous discussion of this Strategy in the Business Processes section.
R Recruit utilise engineers with management qualifications

In order for APDCL to become a commercially sustainable company, it is critical that its management
and professional staff understand both the technical aspects of a large scale engineering operation,
and the business aspects of a service enterprise with a large revenue and customer base.
Training and development of existing APDCL staff is an important strategy to achieve this, but so is to
recruit new professionals that possess the combination of engineering and business education and
sPills. APDCL will implement a strategy to seeP appropriate management qualifications in its
recruitment and selection of new engineers and other professional staff.
The Action Plan for Recruitment Utilisation of Engineers with Management ualifications will be
S. Implement career succession planning including internal promotion and fast-tracP

promotion for high achievers
Along with training and recruitment strategies, career and succession planning is vital for APDCL to
develop a management team with both technical and business acumen. Career planning is the
development of staff based on that staff members own career aspiration. Succession planning is the
companys own strategic identification of staff members who may be promoted towards senior
management positions with further experience and training, and continued high performance.
A Pey to implementing this strategy is to give preference to internal promotion wherever possible
(rather than external appointment), and promotion based on merit (i.e.) obectively-measured
performance) rather than merely seniority (years of service) or sective preference.
The incorporation of career planning into the annual Employee Performance Development Plan
(see Strategy AB
The development of succession plans by the R department
Introducing a R policy and rules for internal promotion based on merit (as per obectively
measured performance)
Identify high-performing professionals and implementing leadership development programs to
develop these staff members.
The Action Plan for Implementation of Career Succession Planning will be prepared to execute this
strategy.
T. Introduce b Description for all staff with Ps
Every APDCL employee should be aware of their responsibilities, including how they will be measured
for their performance. To achieve this, APDCL will ensure that every employee has a ob description
which will detail the purpose of the employees position the employees dutiesresponsibilities and
the Pey performance indicators to measure performance for each position.
This strategy will be implemented on a phased basis, starting with senior management and being
progressively implemented to all levels of management and staff. The Action Plan for Introduction of
b Descriptions will be prepared to execute this strategy.
U. Modernise financial delegations policy with increased devolvement of authority to

management linPed to ob description responsibilities
The implementation of this strategy will provide managers with the ready authority to authorise
expenditure in line with their responsibilities as articulated in their ob description.
Refer to the previous discussion of this Strategy in the Financial Performance section.
V. Introduce annual Performance & Development Plan with KPI's for all staff
APDCL will implement annual Performance & Development Plans to build accountability within the
company. A Performance and Development Plan is a commitment between an employee and his/her
immediate manager in relation to the job priorities, key performance indicators and training and
development activities for that employee in the coming financial year. Each employee of every
company will eventually have an Employee Performance and Development Plan, regardless of their
seniority.
The Employee Performance and Development Plan will be discussed with and set by the employees
immediate manager. The Employee Performance and Development Plan will also be reviewed and
approved by the next higher level of manager (i.e. the immediate managers manager).
The Employee Performance and Development Plan will include the following components:
The employees work priorities for coming year;
Performance indicators and targets for the employee (objective and measurable performance
indicators);
Training and development priorities and activities to be undertaken by the employee in the
following year.
At the end of each financial year, the Performance and Development Plan will be used as the basis for
the performance appraisal of each manager and staff member, with actual performance compared
with the targets set. The Employee Performance and Development Plan will be closely related to the
responsibilities outlined in the employees Job Description.
This strategy will be implemented on a phased basis, starting with senior management and being
progressively implemented to all levels of management and staff. The Action Plan for Annual
Performance & Development Plans will be prepared to execute this strategy.
W. Annual review of employees salaries in line with Indian electricity industry salaries
APDCL will implement a strategy to align employee salaries with those of comparable position in other
electricity utilities throughout India. This salary review will be undertaken annually, along with annual
performance appraisals and the Performance Incentive Scheme.
The evaluation of all positions within the company, based on the responsibilities
articulated in job descriptions;
Commissioning and participating in industry salary surveys throughout the Indian
electricity sector;
Benchmarking internal positions with salaries for comparable positions in other electricity
utilities;
Determining salary ranges appropriate to each position, with strategic consideration to
how APDCL salaries will be set compared with the industry average. Actual salaries
awarded within the salary range for each employee will also consider individual employee
performance and relative experience/expertise.
The Action Plan for Annual Review of Employees Salaries will be prepared to execute this strategy.
X. Introduce Performance Incentive Scheme linked to employee Performance Plan

The purpose of a Performance Incentive Scheme is to help establish and foster a company culture
based on individual accountability, teamwork and reward for business performance. It is an integral
component of implementing a company-wide Business Planning and Performance Management
framework. The Performance Incentive Scheme will provide motivation to the management and staff
of APDCL to achieve business performance that exceeds targets.
Following on from a six-month pilot trial of the Performance Incentive Scheme during FY 11-12 with
managers and staff in operational positions, APDCL will progressively implement the scheme with all
levels of management and staff. Targets will be set for employees based on selected Business Plan
KPIs, and linked to the Performance &Development Plan of employees.
The Action Plan for the Introduction of the Performance Incentive Scheme will be prepared to execute
this strategy.
Introduce safety procedures/manual with training & monitoring

As an electricity distribution business, APDCL staff involved with the maintenance, repair and
construction of the electricity system face potential risks if safe working practices are not consistently
used. Risks include electrocution, head injuries caused by falls from poles or towers, burns, and spinal
or skeletal injuries from the transportation and fitting of heavy equipment. Risks are also prevalent
for field staff involved with metering and billing, or staff handling and managing cash or other
valuable assets.
To ensure staff safety, APDCL will ensure that procedural manuals for safe working practices are in
place, are understood and are being followed. This strategy will include
Review of existing working procedures, and update of procedures where required to ensure
completeness;
Aggregate all procedures into an easy-to-read manual;
Distribute safety manual to all APDCL employees;
Train staff in safety procedures;
Conduct regular safety audits to monitor that safety procedure are being used in all locations.
The Action Plan for Introducing of Safety Procedures/Manuals will be prepared to execute this
strategy.
Ensure appropriate safety equipment available at all times

To ensure staff safety, appropriate safety equipment must be available to all field staff when required.
This equipment should be in good working condition, and safeguarded against misappropriation or
misuse.
This strategy will include
Taking inventory of all existing safety equipment in all locations, and assessing the condition
of existing equipment;
Removing unfit equipment, and procuring new equipment to meet operating requirements;
Establishing procedures for the proper maintenance and storage of equipment.
The Action Plan for Ensuring Availability of Safety Equipment will be prepared to execute this
strategy.
AA. Conduct periodic medical fitness checks including compulsory deployment/retirement for unfit
employees
To ensure employee safety, APDCL will implement a strategy to ensure that all staff members are
physically and mentally fit to perform the duties of their position. This includes where an employees
condition present a danger to himself in performing his duties, or a danger to his colleagues.
This strategy will include
Introducing a drug and alcohol policy and procedures, including both regular and random
testing of employees in high risk positions, and suspension of employees in high-risk positions
found to be under the influencing of alcohol or drugs in the workplace;
Introducing a staff medical assessment policy and procedures, requiring annual medical
checks by a qualified, independent physician for employees in high-risk positions, to
determine fitness for duties;
Transferring employees that are no longer fit to safely perform his duties to an alternative
position within APDCL.
Where suitable alternative positions are not available over a period of time (to allow for
possible redeployment or regain of health), APDCL will adopt an early retirement policy to
ensure staff safety is not compromised.
The Action Plan for Conducting Periodic Medical itness Checks will be prepared to execute this
strategy.
AB. Create informal culture between all staff & managers

To create a highly cooperative workplace, with high staff morale, APDCL will develop an
organisational culture of informality, such that each and every employee is treated equally as a
member of the APDCL team.
Issuing a memorandum from the Managing Director to stipulate use of personal names
(rather than formal titles) in contact between all staff and managers within APDCL
Holding social days, funded by the company, open to all staff and their families throughout
the year;
Introducing suggestion boxes and other staff feedback mechanisms at all workplaces within
APDCL.
The Action Plan for Creation of an Informal Workplace Culture will be prepared to execute this
strategy.
AC. Use 360 degree survey as part of senior management performance review
APDCL will implement a strategy to make managers accountable for building constructive and positive
working relationships with their staff and peers. This is crucial in order to create a culture of high
morale and teamwork.
A 360 degree survey is a survey and rating of a manager by their higher manager(superior), staff
members (subordinates) and fellow managers (peers at the same level of management). It is useful
tool for measuring management performance in terms of his/her impact on the people he/she
manages and works for and with. It also useful as a guide for the manager to understand how he/she
can improve his/her people management skills. The results of a 360 degree survey are treated
confidentially between the manager and his/her higher manager.
All AGMs within APDCL will participate in a 360 degree survey, with the outcomes of the survey
included in the annual performance appraisal of each manager.
The Action Plan for 360 Degree Surveys for Senior Management Performance Review will be prepared
to execute this strategy.
2.4. SUB-APPENDIX A: CAPITAL INVESTMENT PLAN

APDCL is making critical and urgently needed investments in its distribution network to strengthen an
overloaded system and to enhance its reliability to meet contingencies. The following section deals in
detail with the various capital investment programs ongoing at APDCL and those proposed for the
Ensuing Year FY 2011-1 2.
2.4.1. ACCELERATED POWER DEVELOPMENT AND REFORM PROGRAM (APDRP)

The APDRP scheme was introduced by GoI to achieve reduction of T&D loss, improve reliability and
quality of power and to increase net power availability. It aims at strengthening and improving the
sub-transmission and distribution network by setting up of new 33/11 KV sub-stations, augmentation
of Distribution transformers, replacement of conductors, up-gradation of feeders, system metering,
100% customer metering and computerization of billing, capacity building etc.
The APDRP project is designed to address to the above mentioned issues with the ultimate objective
of reducing losses and improving quality of power supply. Improvements of Sub-Transmission &
Distribution System will emphasize on:
Reducing Losses and bringing viability to the State Electricity Board
100% metering & energy audit
Improvement in the quality of supply
Application of Information Technology in Revenue & Operation
Outsourcing of Distribution Activities
Government of Assam, Ministry of Power has allotted fund to Assam in a very generous manner. They
provide 100% fund (of which 90% is grant and 10% loan) for whole of APDRP schemes. Works under
the schemes cover 14 Electrical circles of Assam.
In the Year 2011-12, an amount of Rs. 371.34 Crores under APDRP program is proposed as the
outlay for all the Distribution companies. Out of the total proposed outlay of F s.11
Crores have been earmarked for APDCL, out of which the rant element is . .Crores and the
loan is s. .1 Crores. The table below provides a snapshot of the proposed APDP funding in APDCL
le Proposed Plan Outl for APD under APDRP for FY 1112
The present format is empty for APDCL to fill when the information is available.
2.2. NON APSABE CENTRA P OF RESOURCES CPR

The LC fund outlay is being used for critical augmentation of the 11 k Sub Stations,
construction of k lines, and for construction and augmentation of distribution Sub Stations. For
the ensuing year, an amount of s. 1. Crores under LC program is proposed as the outlay of
2 for the whole of Assam, out of which s. 12. Crores (rant component s. 11.
Crores and loan . 1.2 Crores) is the proposed outlay for APDCL for the nsuing ear. Some of the
important schemes for F 2 are shown in the following table:
le Ke CPR mes
2.3. R EIFICATION
As per 11 census, there are 24,5 numbers of villages in the State of Assam out of whic
numbers of villages () have been electrified as on August This leaves 5,522 numbers
of villages yet to be electrified. Of this, however, only numbers of villages can be accessed by
grid electricity. ectrification of these villages, termed as nonremote villages, is being taken up
under two major schemes of the Central ovt., namely and (P), which are already under
implementation.
2.4.4. RURAL ELECTRIFICATION (MINIMUM NEEDS PROGRAM)
Table 28 - RE (MNP) Scheme
2.4.5. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY)

An outlay of Rs. 12 Crores has been proposed to be earmarked for village electrification under
RGG for F 211-12 out of which Rs. 39 Crores (Grant Rs. Crores and Loan Rs. Crores)
has been envisaged. The details are mentioned in the following table
Table 29 - Electrification under RGGVY Scheme
2.4.6. TRIBAL SUB PLAN (TSP)

The approved allocation for TSP in the h Plan is Rs. 8.25 Crores for all the Distribution companies
put together. An amount of Rs. 1. Crores is proposed for the Annual Plan FY2006-07 for
electrification of Scheduled Tribe (ST) villages in whole Assam, out of which Rs. 0.41Crores has been
earmarked for electrification of villages in APDCL.
2.4.7. SCHEDULED CASTE COMPONENT PLAN (SCCP)

The approved allocation under the SCCP in the 10th Plan is Rs. 3.60 Crores for all the Distribution
companies in the State. An amount of Rs. 1.08 Crores is proposed for the Annual plan 2011-12 for
electrification of SC villages for the whole of Assam.
2.4.8. ADB FINANCED SCHEMES

The total allocation for ADB for 2011-12 is Rs. 51.44 Crores (11.22 million dollars) for Distribution
Schemes. An amount of Rs. 14.83 Crores (3.23 million dollars) is being proposed for APDCL for 33/11
kV substation augmentation, and for putting in place metering and communication systems.
2.4.9. COUNTER PART FUND FOR ADB FUNDED SCHEMES

For the year 2011-12, an amount of Rs. 88.80 Crores (19.37 million dollars) is proposed to be
included in the Annual Plan as the States counterpart fund for the ADB schemes, out of which the
share for APDCL is Rs. 7.98 Crores (1.74 million dollars).
2.4.10. STATE PLAN FUND

a) Distribution Line and Sub Station Augmentation
APDCLs existing Distribution network demands massive modernization work to provide quality,
CADOS I - NDPL
AF
uninterrupted and reliable power to customers In the past due to severe paucity of funds the wors
carried out have been very insignificant The APDRP program alone cannot meet the capital
investment reuirements and there is still an urgent need of fund for Normal Development wors
System Improvement and Augmentation of the system which is a continuous process in the
distribution sector to meet the increasing demand from customer These wors need to be
implemented with the support from the State Plan Fund An amount of Rs 96 Crores has been
envisaged for above distribution system strengthening as a loan under State Plan Schem
b) Disaster Management

Natural calamities li e flood and storm cause heavy damage to the electricity transmission networ

and to the distribution lines and sub-station which is more fre uent in Assam when compared to

other States There is an urgent r
rement of funds in the form of plan assistance for the

restoration of these lines and sub-station A total outlay of R 0 56 Crores is proposed for this
purpose for the Annual Plan 2011- out of which Rs
16 Crores are planned for APDCL

Assam Capacity Development of the Assam Power Sector tilities Final Report Distribution VIII-276
2.5. SUB-APPENDIX B: ANNUAL BUDGET SUMMARY FY 11-12

The following tables show the summary budget (Annual Financial Statement) and a one-page breakdown of the budget by expense category and department.
Note that the Annual Budget for FY 11-12 is consistent with APDCLs Annual Revenue Requirement and Tariff Petition submitted to the AERC.
Refer to the FY 11-12 Annual Budget papers for further details.
ANNUAL FINANCIAL STATEMENT

ANNUAL FINANCIAL STATEMENT
(Budgeted estimates)
Sl. FY11- FY12- FY13- FY14- FY15- FY16- FY17-
Particulars FY18-19 FY19-20 FY20-21 FY21-22
No. 12 13 14 15 16 17 18
Net Sale of Power (MU) 4161.0 6455.2 7287.2 8254.3 8664.2 9131.6 9665.2 10275.5 10974.5 11776.1 12696.7
0 8 5 4 4 0 7 7 1 2 5
RECEIPT
1 Sale of power 2643.95 4652.72 3686.91 4536.45 5170.24 6027.45 6345.23 7048.68 7836.24 8803.20 9794.13
2 (-) Provision for bad debts 53.73 70.47 62.42 69.50 74.78 81.93 84.57 90.44 97.00 105.06 113.31
Net : Income from sale of Power 2590.22 4582.25 3624.49 4466.95 5095.46 5945.53 6260.65 6958.24 7739.25 8698.14 9680.81
3 Other Income 80.85 81.65 82.47 83.30 84.13 84.97 85.82 86.68 87.54 88.42 89.30
2671.0 4663.9 3706.9 4550.2 5179.5 6030.5 6346.4
Total Receipts 7044.92 7826.79 8786.56 9770.12
7 0 6 5 9 0 7
EXPENDITURE
1 Cost of Power Purchased 1734.64 3562.17 2384.66 3081.71 3564.57 4254.60 4405.68 4927.65 5527.61 6296.00 7254.48
2 R&M expenses 54.77 62.24 69.99 78.67 88.21 98.37 109.24 120.81 133.11 146.65 105.33
Employees expenses :
3 425.11 457.09 493.59 533.33 576.05 622.09 671.87 725.25 782.87 845.44 912.32
Current
Arrear 0.00
4 A & G expenses 57.79 66.04 73.67 82.42 91.94 101.70 111.78 122.03 132.42 143.79 31.98
5 interest and finance charges 23.88 23.43 40.48 49.03 57.60 65.72 75.09 85.23 96.29 108.41 121.39
6 Repayment of Loans 6.75 0.00 4.11 9.56 12.03 14.18 16.68 19.40 22.17 25.02 28.01
7 Payment of Interest 27.47 37.70 47.36 54.63 62.13 70.67 80.11 90.39 101.54 113.61 126.94
2330.4 4208.6 3113.8 3889.3 4452.5 5227.3 5470.4

Total Expenditure 6090.75 6796.01 7678.94 8580.45
1 8 6 4 2 4 6
Gross Revenue Surplus/Deficit 340.66 455.23 593.10 660.91 727.06 803.16 876.02 954.17 1030.78 1107.63 1189.67
8 Provision for taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net Revenue Surplus/Deficit 340.66 455.23 593.10 660.91 727.06 803.16 876.02 954.17 1030.78 1107.63 1189.67
Provision for D/Debts

FY11- FY12- FY13- FY14- FY15- FY16- FY17-
Particulars FY18-19 FY19-20 FY20-21 FY21-22
12 13 14 15 16 17 18
ening Balance of Debtors 3 4 0 6
633. 1,

1,

1,
2
1,
1
1,
4
1,
1

1, 1,
1, 2,101.13
2,643. 4, 3, 4 2 4 2 24 20 13
Sales during the year 4, 6, 6,
2 1 4 3
collected during the year 2,203.2 4, 3, 4, 064.6 6,2 44 642.04
2 6 1 6,
1, 3 1,4 0 6 1, 1,4
Closing balance at the end of year

1,
2
1,
1
1,
4 1
1,
1, 2,101.13 2,266.
Provision for D/Debts 62.42 44 00 06 113.31
CASH FLOW STATEMENT

FY11- FY12- FY13- FY14- FY15- FY16- FY17- FY18- FY19- FY20-
Particulars FY21-22
12 13 14 15 16 17 18 19 20 21
SOURCE OF FUNDS:
Opening Balance of Cash at the Beginning of the
Year
Revenue Collection 2203. 61 44 04
Consumer Security Deposits
Other Income 30 13 42 30
Loans-Capex & IT 24 41 33. 40. 41.62 42. 43.20 43.41
Grants-Capex & IT 336. 64 430.
Loans Existing - - - - - - - - - - -
Fresh Equity - - - - - - - - - - -
2,876.5 5,218.3 4,304.4 4,817.7 5,524.0 6,378.2 6,794.2 7,445.8 8,224.5 9,164.5 10,196.4
TOTAL SOURCE OF FUNDS
5 1 8 6 8 4 5 8 4 7 9
APPLICATION OF FUNDS :
Assam: Capacity Development of the Assam Power Sector tilities Final Report Distribution VIII-
AF MCADOS EM L
CASH FLOW STATEMENT

FY11- FY12- FY13- FY14- FY15- FY16- FY17- FY18- FY19- FY20-
Particulars FY21-22
12 13 14 15 16 17 18 19 20 21
Cost of Power 64 3562. 2384.66 3081. 3564. 4254.60 4405.68 65 61 6296.00 48
Employee Cost 393.30 425.11 09 493.59 533.33 05 622.09 25 845.44
Repairs & Maintence Cost 42.86 54. 62.24 69.99 88.21 98. 109.24 120.81 133.11 146.65
A&G Cost 28. 66.04 82.42 91.94 101. 111. 122.03 132.42 143.
Acqusition of fixed Assets 594.19 826.44 382.34 343. 35 413. 421.08 432. 15 439.30 483.55
Repayment of Loan
Loans-Capex & IT 6. 0.00 4.11 9.56 12.03 14.18 16.68 19.40 22. 25.02 28.01
Loan Interest 36 54.63 62.13 80.11 90.39 101.54 113.61 126.94
2,827.9 4,963.9 3,403.8 4,126.8 4,712.4 5,508.9 5,745.7 6,363.1 7,056.5 7,922.3
TOTAL APPLICATION OF FUNDS 9,028.86
3 9 4 7 9 1 3 1 7 4
Sale of Power/ARR (Rs. in crores)
PARTICULARS FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
1 Units pchased(MU) 16 8385.34 9349. 10462.04 10849.90 11299. 11820.00 12420.91 13113.99 98
2 EXPENDITURE
A Cost of Power 1,64 3,562. 2,384.66 3,081. 3,564. 4,254.60 4,405.68 4,65 5,61 6,296.00 254.48
B Fixed Cost
expenses 54. 62.24 69.99 88.21 98. 109.24 120.81 133.11 146.65 105.33
Emploees expenses 425.11 09 493.59 533.33 05 622.09 25 845.44 912.32
A & G expenses 66.04 82.42 91.94 101. 111. 122.03 132.42 143. 31.98
Depeciation 89.85 118. 135.59 152.83 23 188. 205.24 221.26 254.16 19
terst and inance chages 23.88 23.43 40.48 49.03 60 65. 09 85.23 96.29 108.41 121.39
Total fixed cost 651.41 727.60 813.32 896.28 985.02 1076.06 1173.22 1274.57 1382.41 1498.46 1443.22
C Interest on Working Capital 49.69 39 86. 103.56 82 139.35 151. 66 193. 215.89 242.
D ROE 289. 21 484.61 538.20 586.95 642.41 42 819.98 881.26 942.
E Non-Tariff Income
Trading of power
Assam Capacit Development the Assam Powe Sect Utilities Final epot Distibtion
Sale of Power/ARR (Rs. in crores)
PARTICULARS FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
Misc. Income 81. 82.47 83. 84.13 84. 82 8 87. 88.42
Total non-tarrif income 81. 82.47 83. 84.13 84. 82 87. 88.42
3 ARR (A+B+C+D-E) 2643.95 4652.72 3686.91 4536.45 5170.24 6027.45 6345.23 7048.68 7836.24 8803.20 9794.13
Units purchasedM 8334 77 13113. 87
Transmission T&D Losses 4. 4. 4. 4. 4. 4. 4. 4. 4. 4. 4.
AT&C Loss Projecte
et Units recovered MU 28 7287. 34 24 27 12
Average Cost of Supply(Rs/Kwh) 4 7.2 1 7.1 7. 7.7
Table 30 - APDCL Cost of Power
Average
Allocation
Tarrif
of power as
as per FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22
per tariff
Tariff
order
order
Energy Balance
Requirement at
10275.5 10974.5 11776.1 12696.7
consumer Point 4161.00 6455.28 7287.25 8254.34 8664.24 9131.60 9665.27
7 1 2 5
(MU)
Distribution AT& C
20.60% 19.60% 18.60% 17.60% 16.60% 15.60% 14.60% 13.60% 12.60% 12.60% 12.60%
Losses
Requirement at
Distribution point 5,241 8,029 8,952 10,017 10,389 10,819 11,318 11,893 12,557 13,474 14,527
(MU)
Transmission T&D
4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25%
Losses
Total Power
10462.0 10849.9 11299.6 11820.0 12420.9 13113.9 14071.8 15171.9
purchase 5473.16 8385.34 9349.77
4 0 7 0 1 9 7 8
Requirements (MU)
Required Demand in
5,473 8,385 9,350 10,462 10,850 11,300 11,820 12,421 13,114 14,072 15,172
MU
Required availability
of Power from (MU)
AS per
[1] Power purchase
APGCL 1,776 1,957 1,990 2,590 2,608 3,009 3,599 4,496 4,731 4,731 4,979
from APGCL
B.Plan
[2] Power purchase
8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76
from MeSEB
[3] Power purchase
from NEEPCO
-KOPILI 1 (HYDRO) 328 328 328 328 328 328 328 328 328 328 328
-KOPILI 2 (HYDRO) 43 43 43 43 43 43 43 43 43 43 43
-KHANDONG
111 111 111 111 111 111 111 111 111 111 111
(HYDRO)
-RHEP(HYDRO) 307 307 307 307 307 307 307 307 307 307 307
-DHEP(HYDRO) 122 122 122 122 122 122 122 122 122 122 122
Average
Allocation
Tarrif
of power as
per tariff
Tariff
order
order
-KAMENG (NEW
HYDRO)
- -
-AGBPP (T)
-AGTPP (T)
[4] Power purchase
from NHPC
-LGHEP (Exixting) 81 81 81 81 81 81 81 81 81 81 81
-Saunsiri HEP
- - 1,822 1,822 1,822 1,822 1,822 1,822 1,822 1,822 1,822
(NEW)
[5] Power purchase
from NTPC
-Farakka 252 252 252 252 252 252 252 252 252 252 252
-Kahel Gaon-1
-Kahel Gaon-2
-Talcher 112 112 112 112 112 112 112 112 112 112 112
-BTPS( New)
[6] ADAMTILLA
250 250 250 250 250 250 250 250 250 250 250
(SIPP)
[7] BANSKANDI
(SIPP)

[8] NCE SOURCE
[9] OTPC
- - 2, 2, 2, 2, 2, 2, 2, 2, 2,
(PALATANA)
[10] TRADING
PURCHASE
[11] Power
purchase from other 0. - - - - - - - - - -
sources
Total 5,002 5,183 13,049 13,649 13,667 14,068 14,658 15,555 15,790 15,790 16,038
Net Surplus/Deficit
471 3,202 -3,699 -3,187 -2,817 -2,768 -2,838 -3,134 -2,676 -1,718 -866
(MU)
Average Tarrif per

KWH
Average
Allocation
Tarrif
of power as
per tariff
Tariff
order
order
[1] Average tarrif of As per
2.78 3.28 3.34 3.45 3.88 5.01 4.23 4.49 4.57 4.60 4.87
APGCL BP
[2] Average tarrif of Rate of
3.77 3.77 3.96 4.16 4.36 4.58 4.81 5.05 5.30 5.57 5.85 6.14
MeSEB increase 5%
[3] Average tarrif of
NEEPCO
Rate of
-KOPILI 1 (HYDRO) 0.59 0.59 0.62 0.65 0.68 0.72 0.75 0.79 0.83 0.87 0.92 0.96
increase 5%
Rate of
-KOPILI 2 (HYDRO) 1.64 1.64 1.72 1.81 1.90 1.99 2.09 2.20 2.31 2.42 2.54 2.67
increase 5%
-KHANDONG Rate of
0.91 0.91 0.96 1.00 1.05 1.11 1.16 1.22 1.28 1.34 1.41 1.48
(HYDRO) increase 5%
Rate of
-RHEP(HYDRO) 2.9 2.90 3.05 3.20 3.36 3.52 3.70 3.89 4.08 4.28 4.50 4.72
increase 5%
Rate of
-DHEP(HYDRO) 5.66 5.66 5.94 6.24 6.55 6.88 7.22 7.58 7.96 8.36 8.78 9.22
increase 5%
-KAMENG (NEW
HYDRO)
Rate of
-AGBPP (T) 1.45 1.45 1.52 1.60 1.68 1.76 1.85 1.94 2.04 2.14 2.25 2.36
increase 5%
Rate of
-AGTPP (T) 2.02 2.02 2.12 2.23 2.34 2.46 2.58 2.71 2.84 2.98 3.13 3.29
increase 5%
[4] Power purchase
from NHPC
Rate of
-LGHEP (Exixting) 1.36 1.36 1.43 1.50 1.57 1.65 1.74 1.82 1.91 2.01 2.11 2.22
increase 5%
-Saunsiri HEP
3 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
(NEW)
[5]Average tarrif of
NTPC
Rate of
-Farakka 2.82 2.82 2.96 3.11 3.26 3.43 3.60 3.78 3.97 4.17 4.37 4.59
increase 5%
Rate of
-Kahel Gaon-1 2.61 2.61 2.74 2.88 3.02 3.17 3.33 3.50 3.67 3.86 4.05 4.25
increase 5%
Rate of
-Kahel Gaon-2 2.59 2.59 2.72 2.86 3.00 3.15 3.31 3.47 3.64 3.83 4.02 4.22
increase 5%
ADOS I - NDPL
Average
Allocation
Tarrif
of power as
per tariff
Tariff
order
order
Rate of
-Talcher 1.82 1.82 1.91 2.01 2.11 2.21 2.32 2.44 2.56 2.69 2.82 2.96
increase 5
-BTPS( New) 3 3.00 3.15 3.31 3.47 3.65 3.83 4.02 4.22 4.43 4.65 4.89
[6] ADAMTILLA Rate of
2.28 2.28 2.39 2.51 2.64 2.77 2.91 3.06 3.21 3.37 3.54 3.71
(SIPP) increase 5
[7] BANSKANDI Rate of
2.37 2.37 2.49 2.61 2.74 2.88 3.02 3.18 3.33 3.50 3.68 3.86
(SIPP) increase 5
Rate of
[8] NCE SOURCE 3.5 3.50 3.68 3.86 4.05 4.25 4.47 4.69 4.92 5.17 5.43 5.70
increase 5
[9] OTPC Rate of
3 3.00 3.15 3.31 3.47 3.65 3.83 4.02 4.22 4.43 4.65 4.89
(PALATANA) increase 5
[10] TRADING
PURCHASE
[11] Power
purchase from other 3.75 3.75 3.94 4.13 4.34 4.56 4.79 5.03 5.28 5.54 5.82 6.11
sources
Power Purchase
Cost GenCo wise
[1] Average Cost of As per

power of APGCL
AS per P P 494.02 642.67 664.43 894.44 012.98 508.54 520.82 018.81 162.33 176.30 424.31
[2] Average Cost of
0. 3.75 3.30 3.47 3.64 3.82 4.01 4.21 4.43 4.65 4.88 5.12 5.38
power of MeECL
[3] Average Cost of
56. 1.81 - - - - - - - - - - -
power of NEEPCO
-KOPILI 1 (HYDRO) 19.34 20.31 21.32 22.39 23.51 24.68 25.92 27.21 28.57 30.00 31.50
-KOPILI 2 (HYDRO) 7.12 7.47 7.84 8.24 8.65 9.08 9.54 10.01 10.51 11.04 11.59
-KHANDONG
10.09 10.60 11.13 11.68 12.27 12.88 13.53 14.20 14.91 15.66 16.44
(HYDRO)
-RHEP(HYDRO) 89.16 93.61 98.30 103.21 108.37 113.79 119.48 125.45 131.73 138.31 145.23
-DHEP(HYDRO) 69.13 72.59 76.22 80.03 84.03 88.23 92.64 97.27 102.14 107.24 112.61
-KAMENG (NEW
- - - - - - - - - - -
HYDRO)
-AGBPP (T) 125.23 131.49 138.06 144.97 152.21 159.82 167.82 176.21 185.02 194.27 203.98
Assam apacit Development of the Assam Per Sector Utilities nal Report Distribtion VIII-284
Average
Allocation
Tarrif
of power as
per tariff
Tariff
order
order
-AGTPP (T) 55.40 58.17 61.08 64.13 67.34 70.71 74.24 77.95 81.85 85.94 90.24
[4] Power purchase
2.50% 1.5 - - - - - - - - - - -
from NHPC
-LGHEP (Exixting) 11.04 11.59 12.17 12.78 13.42 14.09 14.79 15.53 16.31 17.12 17.98
-Saunsiri HEP
- - 546.62 546.62 546.62 546.62 546.62 546.62 546.62 546.62 546.62
(NEW)
[5]Average Cost of
41.19% 2.08 - - - - - - - - - - -
power of NTPC
-Farakka 71.14 74.70 78.43 82.36 86.47 90.80 95.34 100.10 105.11 110.36 115.88
-Kahel Gaon-1 21.54 22.61 23.74 24.93 26.18 27.49 28.86 30.30 31.82 33.41 35.08
-Kahel Gaon-2 86.91 91.26 95.82 100.61 105.64 110.93 116.47 122.30 128.41 134.83 141.57
-Talcher 20.36 21.38 22.45 23.57 24.75 25.99 27.29 28.66 30.09 31.59 33.17
-BTPS (New) - - 1,090.86 1,145.40 1,202.67 1,262.81 1,325.95 1,392.24 1,461.86 1,534.95 1,611.70
[6] ADAMTILLA
57.07 59.92 62.92 66.07 69.37 72.84 76.48 80.30 84.32 88.54 92.96
(SIPP)
[7] BANSKANDI
12.87 13.52 14.19 14.90 15.65 16.43 17.25 18.11 19.02 19.97 20.97
(SIPP)
[8] NCE SOURCE - - - - - - - - - - -
[9] OTPC
- - 708.82 744.27 781.48 820.55 861.58 904.66 949.89 997.39 1,047.26
(PALATANA)
[10] TRADING
- - - - - - - - - - -
PURCHASE
[11] Average Cost of
powr of other 0.2% 3.75 - - - - - - - - - - -
sources
Net Trading of - - - - - - - -
6 282.47 1,921.18 -519.55
Power (UI) 2,219.48 1,912.12 1,690.20 1,660.94 1,702.74 1,880.40 1,605.54 1,030.82
Cost of purchase of
1436.20 3256.54 1518.58 2182.30 2655.43 3319.55 3436.30 3910.21 4489.84 5247.86 6184.93
power (Net of UI)
Average 10%
Transmission increase is 0.4 0.4 0.40 0.41 0.41 0.42 0.42 0.42 0.43 0.43 0.44
charge(Rs/unit)- pojected
ADOS I - NDPL
Average
Allocation
Tarrif
of power as
per tariff
Tariff
order
order
AEGCL
Average
Transmission

increase is 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003
prected
charge(Rs/unit)-
SLDC
Average
Transmission

increase is 0.3 0.3 0.30 0.31 0.31 0.31 0.32 0.32 0.32 0.32 0.33
charge(Rs/unit)-
PGCIL
ected
Average
Transmission

increase is 0 - - - - - - - - - -
charge(Rs/unit)-
RLDC
ected
Total Transmission
298.44 305.63 866.08 899.40 909.14 935.05 969.38 1017.44 1037.77 1048.14 1069.55
Charge
Total Cost of Power 1734.64 3562.17 2384.66 3081.71 3564.57 4254.60 4405.68 4927.65 5527.61 6296.00 7254.48
Assam apacit Development of the Assam er Sector Utilities nal Report Distribtion VIII-286
2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021-
Employees Cost
11 12 13 14 15 16 17 18 19 20 21 22
Employees Cost-Existing 391.28 422.58 456.39 492.90 532.33 574.92 620.91 670.58 724.23 782.17 844.74 912.32
Employees cost of IT implementation 0.10 0.03 0.02 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Employees Cost-New Capex projects 2.03 2.43 0.68 0.68 0.95 1.08 1.13 1.24 0.97 0.65 0.65
Total Employees Cost: 393.30 425.11 457.09 493.59 533.33 576.05 622.09 671.87 725.25 782.87 845.44 912.32
Repair & Maintenance Expenses Of

APDCL
R&M (approved) 36.92 40.61 44.67 49.14 54.05 59.46 65.40 71.94 79.14 87.05 95.76 105.33
R&M of IT implementation 0.20 0.02 0.05 0.05 0.05 0.07 0.07 0.08 0.08 0.08
R&M (New projects): 5.94 13.96 17.55 20.80 24.57 28.69 32.90 37.22 41.59 45.98 50.81
Total R&M: 42.86 54.77 62.24 69.99 78.67 88.21 98.37 109.24 120.81 133.11 146.65 105.33
Cost of General Administration of

APDCL
GA (Existing) 16.85 17.86 18.93 20.07 21.27 22.55 23.90 25.33 26.85 28.47 30.17 31.98
GA of IT implementation 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
GA (New projects): 11.88 27.93 35.11 41.60 49.15 57.39 65.80 74.44 83.18 91.96 101.62
Total GA: 28.73 57.79 66.04 73.67 82.42 91.94 101.70 111.78 122.03 132.42 143.79 31.98
DEPRECIATION
Rate of Depreciation 3.60% s. in crores)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Closing Balance of 2009-2010 1,902.00

Addition during 2010-2011
Closing Balance of 2010-2011 1,902.00

Total Gross Fixed Assets(GFA)-OLD 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00 1,902.00
Total Gross Fixed Assets(GFA)-CAPEX 593.86 1,396.40 1,755.30 2,080.09 2,457.28 2,869.49 3,290.20 3,722.03 4,158.83 4,597.77 5,080.87
Total Gross Fixed Assets(GFA)-IT 0.33 24.23 47.67 66.60 68.76 69.82 70.19 71.14 71.50 71.85
2,495.8 3,298.7 3,681.5 4,029.7 4,425.8 4,840.2 5,262.0 5,694.2 6,131.9 6,571.2 7,054.7
Total Gross Fixed Assets (GFA)
6 2 3 5 7 4 1 1 6 6 1
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Depreciation relating to IT
- 0.05 3.93 9.48 14.30 16.40 18.32 18.79 19.53 20.17 20.81
implementation
Depreciation on new assets 21.38 50.27 63.19 74.88 88.46 103.30 118.45 133.99 149.72 165.52 182.91
Depreciation on Old assets 68.47 68.47 68.47 68.47 68.47 68.47 68.47 68.47 68.47 68.47 68.47
Total Depreciation 89.85 118.79 135.59 152.83 171.23 188.17 205.24 221.26 237.72 254.16 272.19
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
2,406.0 3,179.9 3,545.9 3,876.9 4,254.6 4,652.0 5,056.7 5,472.9 5,894.2 6,317.1 6,782.5
Total Net Fixed Assets
1 3 4 2 4 7 7 6 4 0 2
Table 31 - APDCL Interest, Loan Repayment and ROE
Loans 10%
Grants
Return in Equity
Repayment of Loans 15 EMI's
Rate of Interest (New Loans) 12.
Rate of Interest (Existing Loans) 10.
Rate of Interest (ASE Bonds) 10.
Sl. 2012- 2013- 2014- 2015-

Project Description 2011-12 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
No 13 14 15 16
Total capex
262.50 52.50 00 52.50 70.00 70.00 77.00 00 00 00 00
requirement
Loans ( 10 ) 26.25 5.25 50 5.25 7.00 7.00 7.70 8. 20 20 20
Grants (90 ) 25 25 50 25 00 00 69. 75.60 80 80 80
Loans ( 10 )-
Disbursed 15.75 6. 7.00 7. 8.05 6. 20 20
During F.
Grants (90 )-
Disbursed 118. 75 55. 00 66.15 72. 56.70 80 80
During F.
Cost of proposed new Cummulative
1 28.88 25 75 50.75 58.10 66.15 72. 76.65 80.85
S/s loans
Opening
lance of - 91 28 86 57.05 68.66 81.60 96. 110. 50
Loans
Interest on
0.79 2.61 08 5.90 7.12 8.51 10.07 11.71 79
loans
Loan raised
15.75 6. 7.00 7. 8.05 6. 20 20
during year
Repayment
- - 0.88 1. 2.22 2.51 2.92 87 69
during year
Closing alance 91 28 86 57.05 68.66 81.60 96. 110. 50 80
Assam Capacity Development of the Assam Power Sector Utilities Final Report Distribution II-289
as on 31st
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
106.67 32.00 17.33 13.33 13.33 16.00 10.67 8.00 53.33 56.00 80.00
requirement
Loans ( 10% ) 10.67 3.20 1.73 1.33 1.33 1.60 1.07 0.80 5.33 5.60 8.00
Grants (90 %) 96.00 28.80 15.60 12.00 12.00 14.40 9.60 7.20 48.00 50.40 72.00
Loans ( 10% )-
Disbursed 5.33 6.93 2.47 1.53 1.33 1.47 1.33 0.93 3.07 5.47 6.80
During F.
Grants (90 %)-
Disbursed 48.00 62.40 22.20 13.80 12.00 13.20 12.00 8.40 27.60 49.20 61.20
During F.
Augmentation of Cummulative
5.33 12.27 14.73 16.27 17.60 19.07 20.40 21.33 24.40 29.87 36.67
2 11 V existing loans
S Opening
Balance of - 5.65 13.68 17.56 20.43 23.25 26.44 29.79 33.00 38.77 47.71
Loans
Interest on
0.32 1.09 1.77 2.15 2.47 2.81 3.18 3.55 4.06 4.90 6.03
loans
Loan raised
5.33 6.93 2.47 1.53 1.33 1.47 1.33 0.93 3.07 5.47 6.80
during year
Repayment
- - 0.36 0.82 0.98 1.08 1.17 1.27 1.36 1.42 1.79
during year
Closing Balance
as on 31st 5.65 13.68 17.56 20.43 23.25 26.44 29.79 33.00 38.77 47.71 58.75
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
150.00 33.75 22.50 33.75 45.00 45.00 49.50 54.00 27.00 27.00 27.00
requirement
Loans ( 10% ) 15.00 3.38 2.25 3.38 4.50 4.50 4.95 5.40 2.70 2.70 2.70
Grants (90 %) 135.00 30.38 20.25 30.38 40.50 40.50 44.55 48.60 24.30 24.30 24.30
3
Cost of new 33 V
line Loans ( 10%)-
Disbursed 7.50 9.19 2.81 2.81 3.94 4.50 4.73 5.18 4.05 2.70 2.70
During F.
Grants (90 %)-
Disbursed 67.50 82.69 25.31 25.31 35.44 40.50 42.53 46.58 36.45 24.30 24.30
During F.
Cummulative
7.50 16.69 19.50 22.31 26.25 30.75 35.48 40.65 44.70 47.40 50.10
loans
Opening
Balance of - 7.95 18.64 23.33 27.93 34.08 41.36 49.48 58.73 67.56 75.66
Loans
Interest on
0.45 1.51 2.38 2.90 3.51 4.27 5.14 6.13 7.15 8.11 9.06
loans
Loan raised
7.50 9.19 2.81 2.81 3.94 4.50 4.73 5.18 4.05 2.70 2.70
during year
Repayment
- - 0.50 1.11 1.30 1.49 1.75 2.05 2.37 2.71 2.98
during year
Closing Balance
as on 31st 7.95 18.64 23.33 27.93 34.08 41.36 49.48 58.73 67.56 75.66 84.44
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
214.99 49.97 30.20 37.60 45.60 48.80 47.84 50.90 55.17 58.43 73.50
requirement
Loans ( 10% ) 21.50 5.00 3.02 3.76 4.56 4.88 4.78 5.09 5.52 5.84 7.35
Grants (90 %) 193.49 44.97 27.18 33.84 41.04 43.92 43.06 45.81 49.65 52.59 66.15
Loans ( 10% )-
Disbursed 10.75 13.25 4.01 3.39 4.16 4.72 4.83 4.94 5.30 5.68 6.60
During F.Y
Grants (90 %)-
Disbursed 96.75 119.23 36.08 30.51 37.44 42.48 43.49 44.43 47.73 51.12 59.37
During F.Y
Cummulative
Cost of new 11 KV 10.75 24.00 28.01 31.40 35.56 40.28 45.11 50.05 55.35 61.03 67.63
4 loans
line
Opening
Balance of - 11.39 26.80 33.51 39.43 46.59 54.97 64.17 74.26 85.61 98.36
Loans
Interest on
0.64 2.16 3.41 4.13 4.87 5.75 6.74 7.84 9.05 10.41 11.98
loans
Loan raised
10.75 13.25 4.01 3.39 4.16 4.72 4.83 4.94 5.30 5.68 6.60
during year
Repayment
- - 0.72 1.60 1.87 2.09 2.37 2.69 3.01 3.34 3.72
during year
Loans Balance
as on 31st 11.39 26.80 33.51 39.43 46.59 54.97 64.17 74.26 85.61 98.36 113.22
March
Sl. 2012- 2013- 2014- 2015-

No 13 14 15 16
Total capex
262.51 93. 56.38 19 85.12 91.09 89.31 95.01 102.99 109. 20
requirement
Loans ( 10 ) 26.25 9.33 5.64 02 8.51 9.11 8.93 9.50 10.30 10.91 13.
Grants (90) 236.26 83.95 50. 63. 61 81.98 80.38 85.51 92.69 98.16 123.48
Loans ( 10 )-
Disbursed 13.13 9 48 6.33 8.81 9.02 9.22 9.90 10.60 12.31
During F.
Grants (90 )-
Disbursed 118.13 160.10 34 56.96 69.89 29 81.18 82.94 89.10 95.43 110.82
During F.
Cummulative
13.13 30.91 38.40 44. 52.49 61.30 32 54 89.44 100.04 112.35
loans
Cost of new 11/.4
5 Opening
substation
qlance of - 13.91 34.44 45.58 55.s s 82.06 114.93 134.25 155.98
Loans
Interest on
0. 2. 4.53 5. 6.98 8.48 10.18 12.04 14.10 16.43 19.10
loans
Loan raised
during year
13.13 48 6.33 8.81 9.02 9.22 9.90 10.60 12.31
Repayment
- - 0.88 2.06 2.56 2.98 3.50 4.09 4.69 5.30 6.01
during year
Loans alance
as on 31st 13.91 34.44 45.58 55.s s 82.06 114.93 134.25 155.98 181.38
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00
requirement
Loans ( 10 ) 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
Grants (90) 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00
Cost of new AC in
6
LT Loans ( 10 )-
Disbursed 6.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
During F.
Grants (90 )-
Disbursed 54.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00 108.00
During F.
Cummulative
loans
00 00 30.00 42.00 00 00 00 00 102.00 114.00 t00
Opening
lance of - 34.t 11 72 103.t 124.00
Loans
Interest on
0. 1. 3. 4. 10. 12. t 17. 20.71
loans
Loan raised
during year
00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
Repayment
- - 0.40 1.20 2.00 2. 3. 4.40 20 00
during year
Loans alance
as on 31st 34.t 11 72 103.t 124.00
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
requirement
23. 14. 21. 23.42 22. 24.43 t t t
Loans ( 10 ) 2.40 1. 1. 2. 2.34 2.30 2.44 2. 2. 3.

ants (0 ) 21. 13. 24 70 21. 20. 21. 23. t24 31.
Loans ( 10 )-
Disbursed 3. 4. 1.t 1. 2.00 2.27 2.32 2.37 2. 2.73 3.17
During F.
ants (0 )-
Disbursed 30. 41.17 17.32 14. 17. 20. 20. 21.33 22. 24. t
During F.
Cummulative
7 New LT Lines 3. 7. 11. 13. 20. 23.00 t72 t
loans
Opening
lance of - 3. 11.72 14.t 17.42 21.10 t14 t 34.t 40.11
Loans
Interest on
0.20 0.70 1. 1.47 1. 2. 2.t 3.10 3. 4.22 4.
loans
Loan raised
3. 4. 1.t 1. 2.00 2.27 2.32 2.37 2. 2.73 3.17
during year
Repayment
- - 0.23 0. 0. 0.77 0. 1. 1.21 1. 1.
during year
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VIII-t
Loans alance
as on 31st 3.58 8.86 11.72 14.29 17.42 21.10 25.14 29.55 34.52 40.11 46.64
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
0.33 23.91 23.44 18.94 2.16 1.06 0.37 0.95 0.36 0.35 0.45
requirement
Loans ( 10% ) 0.03 2.39 2.34 1.89 0.22 0.11 0.04 0.10 0.04 0.04 0.05
Grants (90 %) 0.29 21.51 21.09 17.04 1.94 0.95 0.33 0.86 0.32 0.32 0.41
Loans ( 10% )-
Disbursed 0.03 2.39 2.34 1.89 0.22 0.11 0.04 0.10 0.04 0.04 0.05
During F.Y
Grants (90 %)-
Disbursed 0.29 21.51 21.09 17.04 1.94 0.95 0.33 0.86 0.32 0.32 0.41
During F.Y
Cummulative
0.03 2.42 4.77 6.66 6.88 6.98 7.02 7.11 7.15 7.18 7.23
loans
8 IT Opening
Balance of - 0.03 2.71 5.48 7.91 8.60 9.24 9.86 10.63 11.41 12.29
Loans
Interest on
0.00 0.29 0.59 0.85 0.92 0.99 1.06 1.14 1.22 1.32 1.42
loans
Loan raised
0.03 2.39 2.34 1.89 0.22 0.11 0.04 0.10 0.04 0.04 0.05
during year
Repayment
- 0.00 0.16 0.32 0.44 0.46 0.47 0.47 0.47 0.48 0.48
during year
Loans Balance
as on 31st 0.03 2.71 5.48 7.91 8.60 9.24 9.86 10.63 11.41 12.29 13.28
March
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
- - - - - - - - - - -
requirement
Loans ( 10% )
9 Existing Loans Grants (90 %)
Loans ( 10% )-
Disbursed
During F.Y
ants ( %)
Disbursed
During F.
Cummulative
loans
Opening
Balance of 24 55
Loans
Interest on
25.11 52
loans
Loan raised
during year

payment
during year
Loans Balance
as on 1st 24 55
rch
Sl. 2012- 2013- 2014- 2015-
No 13 14 15 16
Total capex
1, 415. 515.
requirement
Loans ( 1% ) 45 42. 44 41.54 41. 42. 44. 51.54
ants ( %) 1, 45 41
Loans ( 1% )
Disbursed 24 41 41. 42. 41
During F.
ants ( %)
Disbursed 1 55
10 Total During F.
Cummulative
loans
24 141.11 212. 51
Opening
Balance of 1, 1,24 1, 1, 1,5
Loans
Interest on
54. 11 54
loans
Loan raised
during year
24 41 41. 42. 41
Repayment
6.75 0.00 4.11 9.56 12.03 14.18 16.68 19.40 22.17 25.02 28.01
during year
Loans Balance
as on 31st 564.93 684.50 765.17 844.19 931.82 1,029.19 1,134.24 1,248.01 1,370.57 1,502.58 1,649.34
March
2012- 2013- 2014- 2015-

ROE 2011-12 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
13 14 15 16
Equity Capital -
Opening
As per Tarrif
Opening Balance 163 163 163 163 163 163 163 163 163 163 163
Order
9 Addition 0% - - - - - - - - - - -
Closing Balance 163 163 163 163 163 163 163 163 163 163 163
GFA 1,902 2,496 3,299 3,682 4,030 4,426 4,840 5,262 5,694 6,132 6,571
TOTAL 2,065 2,659 3,461 3,844 4,193 4,589 5,003 5,425 5,857 6,295 6,734
Return on Equity @
14% 289 372 485 538 587 642 700 759 820 881 943
14%
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Tarrif Petetion)
Growth(As per
Rate of Load
of consumer
Consumed(M
Category
Connected
Load(KW)
Consumer
No of
Units
KW
KW
KW
KW
KW
KW
KW
KW
KW
MU
MU
MU
MU
MU
MU
MU
MU
MU
U)
LT
CATEGORY
20.
Jeevan 66,01 7,00, 29 79,21 35 95,05 42 1,14, 51 1,36, 61 1,64, 74 1,97, 2,36, 1,0 2,83, 1,2 3,40, 1,5
00 890
Dhara 1 150 8 4 8 6 9 068 5 881 8 257 2 109 531 68 837 81 604 38
%
10.
12,96 12,71 1,3 14,26 1,4 15,69 1,6 17,25 1,7 18,98 1,9 20,88 2,1 22,97 2,3 25,26 2,6 27,79 2,8 30,57 3,1
Domestic A 00
,726 ,129 50 ,398 85 ,038 34 ,942 97 ,536 77 ,390 74 ,229 92 ,951 31 ,647 94 ,611 83
%
15.
1,72, 23,86 15 1,97, 17 2,27, 19 2,61, 22 3,01, 26 3,46, 30 3,98, 4,57, 5,26, 6,05,
Domestic B 00 347 399 459 528
164 5 0 989 3 687 8 840 8 116 2 284 2 227 961 655 653
%
2,93, 1,64, 48 16. 3,40, 55 3,95, 64 4,58, 74 5,31, 86 6,17, 1,0 7,15, 1,1 8,30, 1,3 9,63, 1,5 11,17 1,8
Commercial
779 857 0 00 784 7 309 6 559 9 928 9 037 08 762 69 284 57 130 74 ,231 25
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Tarrif Petetion)
Growth(As per
Rate of Load
of consumer
Consumed(M
Category
Connected
Load(KW)
Consumer
No of
Units
KW
KW
KW
KW
KW
KW
KW
KW
KW
MU
MU
MU
MU
MU
MU
MU
MU
MU
U)
%
General 58,96 25,74 1.0 59,55 60,14 60,75 61,35 61,97 62,59 63,21 63,84 64,48
62 63 63 64 65 65 66 66 67 68
Purpose 3 2 0% 3 9 0 8 1 1 7 9 7
Public 1.0
4,381 862 8 4,425 8 4,469 8 4,514 8 4,559 8 4,604 8 4,650 8 4,697 9 4,744 9 4,791 9
Lighting 0%
5.0 10,21 10,72 11,26 11,82 12,41 13,03 13,68 14,37
Agriculture 9,264 4,272 30 9,728 32 33 35 36 38 40 42 44 47
0% 4 5 1 4 5 6 8 2
Small 17.
76,88 89,95 1,05, 1,23, 11 1,44, 13 1,68, 15 1,97, 2,30, 2,69, 3,15,
Industries 7,030 70 00 82 96 180 210 246 288
5 6 248 141 2 075 1 567 3 224 752 980 876
(Rural) %
Small
37,59 5.0 39,47 41,44 43,51 45,69 47,98 50,37 52,89 55,54 58,32
Industries 3,566 29 30 32 34 35 37 39 41 43 45
4 0% 3 7 9 5 0 9 8 3 0
(Urban)
Temporary
1.0
Supply 386 92 1 389 1 393 1 397 1 401 1 405 1 409 1 413 1 418 1 422 1
0%
(Dom)
Temp.
1.0
Supply (Non- 841 146 3 849 3 858 3 866 3 875 3 884 3 893 3 902 3 911 3 920 3
0%
dom)
Rural
15,35 0.5 10,02 10,07 10,12 10,17 10,22 10,27 10,32 10,37 10,43
unmetered 9,973 10 10 10 10 10 10 10 10 10 10
0 0% 3 3 4 4 5 6 8 9 1
(Dom)
Rural
0.5
unmetered 187 239 0 188 0 189 0 190 0 191 0 192 0 193 0 194 0 195 0 196 0
0%
(Comm)
Deptt. 0.5
6,827 5,866 5 6,861 5 6,895 5 6,929 5 6,964 5 6,999 5 7,034 5 7,069 5 7,104 5 7,140 5
Employees 0%
Board's
0.5
Establishme 1,730 564 3 1,738 3 1,747 3 1,756 3 1,764 3 1,773 3 1,782 3 1,791 3 1,800 3 1,809 3
0%
nts
HT
CATEGORY
39,45 39,84 40,24 40,24 40,25 40,25 40,25 40,26 40,26 40,27
Domestic 510 34 1% 34 34 34 35 35 35 35 35 35
0 5 3 7 1 5 9 3 7 1
1,38, 30 25 1,73, 37 2,17, 46 2,17, 47 2,18, 47 2,18, 47 2,19, 2,19, 2,20, 2,21,
Commercial 1,851 473 475 476 477
990 0 % 737 5 171 9 714 0 259 1 804 2 351 900 449 001
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Tarrif Petetion)
Growth(As per
Rate of Load
of consumer
Consumed(M
Category
Connected
Load(KW)
Consumer
No of
Units
KW
KW
KW
KW
KW
KW
KW
KW
KW
MU
MU
MU
MU
MU
MU
MU
MU
MU
U)
Public Water 15 82 11 11 11 11 10 18 25
2, 85
Works 8 2 8 8 0 0 1
Bulk
10 10 16 0, 22 25
Supply(Govt.
2
60
6
66
8
8
8
8

Educ)
Bulk
1, 1,52, 1,60, 1,60, 1,60, 1,60, 1,60, 1,60, 1,60, 1,60,
Supply(Othe

rs)
0 8 6 6 6 566 6
HT Small 28 25

Industries 6 8 0 1 5 8
HT-I 51, 05 08 11 20
Industries 8
60 5
1
66
66
8
66
6
66
5
66
66
2
66
1
66
HT-II 2,82,
510
80 25 1,0 1,2 1,2 1,2 1,2 1,2 1,2 1,2 1,2
Industries 0 00 50 506 56 615 66
Tea, Coffee & 2, 25, 25, 25, 25, 25, 26,

Rubber 0 8 568 8 8 250 162
61 68 10 10 12 10 18 10 10
Oil & Coal 252
2 8 0 1 8 5 2 0
51, 01 06 12 ,1
HT Irrigation
6
1,055 5
2
6
0

Single point 1, 1,80, 1, 10 1, 1,8 1, 2,0 1, 2,0 1, 2,0 1, 2,0 1, 2,0 1, 2,0 1, 2,0 1, 2,0
supply 10 81 886 062 82 121
Board's
Establishme 1,261 5 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2
nts
33,5 24,1 6, 37,5 7, 42,1 8, 45,1 8, 48,4 9, 52,2 9, 56,5 10, 61,3 10, 66,8 11, 73,0 12,
Total 6,94 4,12 45 6,08 28 5,81 25 2,72 66 7,56 13 5,55 66 2,71 27 5,95 97 3,19 77 3,57 69
8 0 5 3 7 4 4 8 4 0 2 1 5 3 6 0 5 6 6 8 7
Interest on working capital (Rs. In crores)
months 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
One month approved O&M cost 1 56 5. 5. 6.56 8.20 10 10. 11. 12.22 8.
1 % of GFA 82 26 52.62 56. 61. 65. 55
Two months receivables (Sale *Avg

2 393.36 577.94 695.97 834.51 951.07 1,129.38 1,229.48 1,410.94 1,576.86 1,759.45 1,988.49
Tarrif)/12*2
Total working Capital requirement 422.88 616.11 738.62 881.37 1,002.68 1,185.98 1,291.20 1,477.95 1,649.28 1,837.39 2,067.82
Interest on working Capital (ROI 11.75%) 12% 49.69 72.39 86.79 103.56 117.82 139.35 151.72 173.66 193.79 215.89 242.97
Working of Two month receivable 440.66 775.45 614.48 756.08 861.71 1,004.58 1,057.54 1,174.78 1,306.04 1,467.20 1,632.35
Avg MU is Peak MU is
Details provided as per records as on 23/09/2010
work out considered
Effective Effective Effective Effective
Effective Effective
Total Share
Total Share
Alloc Share
Free Share
Capacity Capacity Capacity Capacity
GENERATORS
Installed
Unitwise
Capacity
Capacity
Capacity Capacity
during during during during
(Average) Average
Summer Winter Summer Winter
Off-
Off- Pe Off- Pe Off- Off- Off-
Peak Pea Peak Peak Peak
Peak ak Peak ak Peak Peak Peak
k
MW MW % % % MW % % % % MW MW MW MW MW MW MU MU
Kopili HEP ST-
200 4*50 47.46 6 53 107 70 80 0 40 75 86 0 43 37 64 327.79 561.92
I
Kopili HEP ST-
25 1*25 40.62 6 47 12 85 85 0 60 10 10 0 7 5 8 43.39 74.01
II
Khandong
50 2*25 50.28 6 56 28 90 88 0 30 25 25 0 8 13 17 110.92 145.43
HEP
RHEP 405 3*135 43.33 0 43 175 40 80 0 35 70 140 0 61 35 101 307.44 883.88
DHEP 75 3*25 43.74 0 44 33 85 85 0 25 28 28 0 8 14 18 122.14 158.06
6*33.5+3* 1,007.5
AGBPP 291 56.47 0 56 164 60 70 60 70 99 115 99 115 99 115 863.63
30 7
AGTPP 84 4*21 45.18 0 45 38 85 85 80 80 32 32 30 30 31 31 274.26 274.26
NHPC 90 3*30 29.42 0 29 26 40 50 30 60 11 13 8 16 9 15 81.17 127.55
47. 2,130. 3,232.
Total 1220 584 60 77 23 50 350 449 137 289 243 369
85 73 69
FARAKKA 1600 2.86 46 63 75 63 75 29 34 29 34 29 34 252.28 300.33

KAHELGAON -
840 1.78 15 63 75 63 75 9 11 9 11 9 11 82.52 98.23
I
KAHELGAON - 1500 3*500 5.06 76 63 75 63 75 29 57 48 57 38 57 335.58 498.66
ADOS I - NDPL
II
TALCHER 1000 2.03 20 63 75 63 75 13 15 13 15 13 15 111.89 133.21
TOTAL CSGS,
4940 157 63 75 63 75 99 118 99 118 99 118 865.56
030.4
ER 3
Akaltara, 1.12
4000 1.125 0.00 45 63 75 63 75 29 34 28 34 29 34 250.31 295.65
UMPP 5
ADAMTILLA 9 100 9.00 10 10 10 10 1 1 1 1 1 1 7.88 7.88
15.5
BANSKANDI 15.5 100 40 40 40 40 6 6 6 6 6 6 54.31 54.31
0
TOTAL 24.5
24.5 100 29 29 29 29 7 7 7 7 7 7 62.20 62.20
EIPL_IPP 0
MeSEB 1 1 1 1 1 1 1 1 8.76 8.76
TOTAL
6185.5 766 60 75 32 54 456 575 244 415 350 495
067. 334.0
IMPORT 25 8

2. 119.
NTPS 119.5
20 100
5
55 55 45 60 66 66 54 72 60 69 523.41 601.92
11
LTPS 120
100 120 75 75 70 80 90 90 84 96 87 93 762.12 814.68
0
KLHEP 100 100 100 90 100 0 70 90 100 0 70 45 85 394.20 744.60
TOTAL APGCL 339.5 100

339.
72 75 41 70 246 256 138 238 192 247
679. 161.2
5 73 0
TOTAL 4,746. 6,495.

1106 64 75 35 59 702 830 382 653 542 741
Availability 98 28
TOTAL
750 1050 650 975 700 1013
132. 869.5
Demand 00 0
- -
TOTALGAP -48 -220 -268 -322 -158 -271 385. 374.2
02 2
Proposed
Proposed
Quantum
Installed
Unitwise
Effective
Effective
Capacity
Capacity
Share
Share
COD
UPCOMING
MU
PROJECTS
Assam apacit Development of the Assam er Sector Utilities nal Report Distribtion VIII-300
AF MERCO EMI - L
MM,
MW % % MW
YY
Mar 2,143 OT
PALATANA 740 33.06 33.06 245
3 .08
SUBANSIRI Mar 1,822
HEP
2000 47.27 10.4 208
3 .08
Mar 569.2
KAMENG HEP 600 23.5 10.83 65
3 2
Mar 3,298
NTPC, BTPS 750 50.2 50.2 377
3 .14 C
ADDL.
4090 894
CSGS_NER
LWHRP 37.2 100 100 37.2

n
NRPP 100 100 100 100
3 t
n Considered.
LUNGNIT 6 100 100 6
3 tails taen
n from
MYNTRIANG 9 100 100 9
3 Business
n plan of
CTPS (Coal) 60 100 100 60
3 CL
212 1,858
ADDL APGCL 212.2
.2 .87
Assam: Capacity evelopment of the Assam er ctor Utilities Final Report striution II-301
2.6. SUB-APPENDIX C: DEFINITION OF PERFORMANCE INDICATORS

1ai. Customer Average Interruption Frequency Index (CAIFI)
Consumers Average Interruption Frequency Index shall be calculated by dividing the total number of
sustained interruptions to customers in a year by the total number of customers served. An
interruption in supply to a customer shall be considered as one interruption to one customer. In case
of failure of a line or transformer, number of interruptions shall be equal to the number of customers
affected. The index shall be expressed as number of interruptions per customer per year and shall be
calculated annually.
CAIFI ! (I x )/ N
Where:
I Number of interruptions exceeding 10 minutes at a time for the voltage class.
Number of Consumers whose power supply remained off as a result of such
interruption.
N Total Number of Consumers in service at the beginning of year having that class of
voltage supply
The following types of interruptions shall not be taken into account:
Planned outages
Temporary interruptions of duration less than ten minutes
Outages due to failure of upstream power system including generation and transmission
network.
Outages due to Force Majeure reasons beyond the Companys control like fire, earthquake,
floods, storms, and riots.
CAIFI shall be calculated for a sub-station, for a circle and for the Company as a whole. The index
shall be expressed in number of interruptions per customer per year.
1a(ii). Customer Average Interruption Duration Index (CAIDI)

Consumers Average Interruption Duration Index shall be calculated by dividing the total minutes of
sustained interruption in supply to customers in a year by the total number of customers served. The
index shall be expressed as number of minutes of interruption per customer per year and shall be
calculated annually.
CAIDI ! (P x )/N
Where:
P Duration of interruptions exceeding 10 minutes at a time for the voltage class.
Number of Consumers whose power supply remained off as a result of such interruption.
N Total Number of Consumers in service at the beginning of year having that class of
voltage supply
The following types of interruptions shall not be taken into account:
Planned outages
Temporary interruptions of duration less than ten minutes
Outages due to failure of upstream power system including generation and transmission
network.
Outages due to Force Majeure reasons beyond the Companys control like fire, earthquake,
floods, storms, and riots.
CAIDI shall be calculated for a sub-station, for a circle and for the Company as a whole. The index
shall be expressed in interruption minutes per customer per year.
1b. % of Performance Standards met

This indicator measures whether APDCL is delivering service in accordance with the AERCs
aranteed Standards of Performance, including customer related services and the quality of power
supply.
Guaranteed Standards of Performance pertaining to customer-related services comprise:
1. Fuse-off /fault calls.
2. Line breakdowns.
3. Replacement of failed distribution transformers.
4. Replacement of damaged service line.
5. Complaints about meters and customers bills.
Guaranteed Standards of Performance pertaining to quality of power supply comprise:
1. Voltage variation limits.
2. Neutral voltage displacement.
3. Frequency deviation.
This indicator will be calculated as follows:
of erformance 1- Number of customers where any performance standard not met 100
Standards met Total number of customers served in the same period
Note that this indicator will be calculated based on:

Customer complaints/comments regarding a customer related-service or uality of supply

standard not being met. A customer complaints comments database will be established to
record and monitor all customer complaints received. and

An independent audit of services in each field location to be established and manage centrally
within A DC .
2a. Operating Costs per kWh sold (Employee + O&M + GA costs)

This indicator measures total operation and maintenance expenditure, including employee costs,
repair and maintenance, and administration and general expenses, relative to the amount of output
that was serviced by this operating expenditure.
Employee Repair Maintenance Administration eneral Expenses

Total kh sold (as billed to customers)
Operating Costs
per k h sold
2b. Sales (MU) (excluding internal consumption)

This indicator measures totally units (in k h) of electricity as billed to customers in a given period.
3a/3b. Technical + Commercial (including Metering & Billing) Loss % (Distribution Loss
only)
This indicator gives the loss of electricity units between the point of despatch from the transmission
network and the energy actually billed to the customer (but does not include the loss to the
Company resulting from non-payment of energy billed by customers).
Commercial (including Number of customers billed during period 100

Billing) oss
Technica
Metering Total number of customers served in the same period
3d(i) Billing Efficiency %

This indicator gives the proportion of energy actually billed for the energy injected.
Billing Efficiency Energy billed

100
Energy injected in the same period
ii. Collection Efficiency

This indicator gives the proportion of energy billed that results in actual payment to the Company.
Collection Efficiency %
Total value (Rs. of payments received from customers for energy bills in a period 1%
Total value (Rs. of energy billed to customers in the same period
. System Pe Demand
This indicator measures the peak demand (in M on the electricity system in any given financial
year.
i. % of commercial management processes with documented policies & procedures

This indicator measures whether APDCL has documented policies and procedures in each of the
following areas
1. Asset management
2. IT
3. Financial management
4. HR management
5. Materials management
% of commercial
mgmt processes with No. of commercial management processes (above
documented policies with complete set of policies and procedures 1%
procedures 5
ii. % of commercial management processes using appropriate S

Following on from performance indicator 3d(i, this indicator measures whether
APDCL has adopted
appropriate information technology to enhance each of those commercial management processes.
% of commercial
mgmt processes No. of computerised commercial management processes (above 1%
using MIS 5
4a. % of staff anager & ab with s lls as per ob Description as per S lls Audit
This indicator measures the extent to which each APDCL manager (i.e. those employees with an
organisational ranking of Manager or higher actually possesses the skills as required of them
according to each managers job description.
% of staff (Manager
above with skills ! ( % Skills rating for each manager
as per ob Total no. of employees at Manager or higher level within APDCL.
Description
An annual skills audit will be conducted by the HR department to assess the skills possessed by each
manager in accordance with those stipulated in each managers job description.
% of employees with annual Performance Plan and Performance Appraisal

This indicator measures the extent to which the Performance and Development Plan has been
implemented within APDCL.
% of employees with
annual Performance
Plan
Total no. of employees with Performance Development Plan 1%
Total no. of employees within APDCL
Performance
Appraisal
AF MCADOS EM L
4c(i). Percentile ranking of company salaries with industry survey

This indicat meases how APDCL salaies compae with othe ndian electicit distiion
companies. APDCL will paticipate in an indstwide sve o salaies in ode to benchmak its
own salies.
The pecentile anking es to how APDCL aveage salaies ae anked in a statistical distibtion o
the avege salaes o each disbtion compan seed (sch that 100 eqals the compan
with the highest aveage sala, 0 eqals the compan with the lowest aveage sal and 50
qals the compan with the median age sal.
4c(ii). % of employees participating in Performance Incentive Scheme

This indicat meases the extent to which the Pemance ncentive Scheme has been
implemented within APDCL.
empl
paticipating in Total no. emplees in Pemance ncentive Scheme 100
mance Total no. emplees within APDCL
centive Scheme
4d(i). Injuries per 1,000 employees per month

This indicat meases the nmbe o injies that occ whilst an emploee is on dt o APDCL,
whethe in a APDCL wokplace o in a ield location. t is calclated on a base o 1,000 emploees so
the slts a compable with othe simila oanisations.
jes pe 1,000 Total no. emplee injies x 1,000

empl p month Total no. emplees within APDCL
4d (ii). % of staff with "good" morale rating or higher (as per Staff Survey)
This indicat meases the extent to which APDCL empl possess a high positive impession and
attitde towds thei compan thei job and wk envionment.
An al sve o all sta will be coted on a coidential, anomo basis (an extenal im
will be commission to collate the eslts). The sve will seek each emploees ating egading
is aspects thei compan wkplace and individal wk dties.
2.7. SUB-APPENDIX D: NOTES ON SALES PROJECTION

For the purpose of sales forecast, APDCLL has analyzed the sales pattern of month-wise and
category-wise sale of electricity for the last five year and the actual sales data for the first 3 months
of FY11 (These sales patterns have been used in estimating the sales for the balance period of the
current year FY11 and forecasting the sales forFY12.
The sales projections have been done separately for each customer category for the ensuing year.
The slab-wise break-up of sales for the new categories, that were introduced by the AERC vide its
2010-11 Tariff Order (e.g. Domestic), have been arrived at based on the breakup used by the AERC
in its 2010-11 Tariff Order, suitably modified where necessary in line with boundary conditions. This
has been done due to non-availability of actual sales data for the new Tariff Categories at the time of
preparation and submission of the petition.
For the purpose of sales forecasting for the ensuing year, the following methodology has been
adopted:
The Compounded Annual Growth Rate (CAGR) has been calculated for the 5-year period.
The Year-on-Year (YOY) growth rates for the first 3 months of FY12 over FY11 have been
computed.
The long term CAGR has then been fine-tuned to incorporate the sales trend as reflected by
the short-term growth rates to arrive at the Modified CAGR (MCAGR).

The Modified CAGR for each category has then been used to project the sales growth for the

respective category. owever, for a few categories where the MCAGR was found to be greater

than 10 , it has been capped at 10 . Similarly, where it has shown a negative growth, the
growth rate has been taken at 0 .
The sales projections have been projected for each category (and also the slabs, wherever
applicable) separately, based on historical data available.
The number of customers and connected load has been projected based on historical data
available for the Assam Distribution Sector as a whole.
In the absence of detailed and validated data for each of the distribution companies, the
number of customers and connected load for each distribution company has been estimated
based on the proportion of sales for the respective distribution company.
The aforesaid steps have been followed keeping in mind the boundary conditions for each

category (and if applicable, each slab). Wherever required, the figures have been sanitized to
eliminate apparent anomalies and logical inconsistencies (e.g. number of T Domestic and T
Commercial customers being 17,000 and 12,000 approximately as per Tariff Order 2005-06
for the Assam Distribution Sector as a whole, average connected load for Jeevan Dhara
customers being 0.76 KW etc
Under APDRP and ADB schemes, APDCL is putting in massive efforts towards strengthening
the transmission and distribution network with a view to improving the overall system
reliability. Coupled with the vigorous initiatives that have been taken to improve the PLF of
APGCLs thermal power stations as well as the necessary arrangements to import energy
during the lean hydro season, this is expected to significantly reduce the impact of
suppressed sales due to energy shortage and/or network outages.
In recognition of these welcome developments, the projected sales for FY 2010-11 for the Assam
Distribution Sector as a whole has been taken to be 75 MU higher than that computed based on
actual sales for Apr-Jun 2011-12 and historical sales figures and growth rates for the balance
9months. In respect of APDCL, the corresponding adjustment on account of reduction of
suppressed sales works out to about 23 MU. Similarly, for FY 2011-12, it is estimated that there
will a further reduction of 75 MU of suppressed sales for the Assam Distribution Sector as a whole
and a further 23 MU for APDCL.
MERCADOS EMI - NDPL
3. ANNEX TO FINANCIAL POLICY FOR THE IMPROVEMENT AND

EXPANSION OF SPSS AND RRES SECTION
Example of how the resultant BST may be derived.
Table 32 - Comparative BST
Performance without Franchisee
Feeder
Legen Equatio
data Present Year 1 Year 2 Year 3 Year 4 Year 5
d n
(Annual)
Total
a 1001
Consumers
LT-I
evan 0 1000
Dhara
LT-II
872
Domestic A
LT-III
0
Domestic B
LT-IV
Commercia 94 114
l
LT-V
General
34 4 41
Purpose
Supply
LT-VII
0
Agriculture
LT-VIII
Small 1 1 1 1 1 1
Industries
Connection
4%
Growth
Per capita
Consumpti 8%
on Growth
Effective
b demand
growth
Energy
Billed non
c 458,049 514,
RGGV
(Units)
Energy
Billed
d -
RGGV
(Units)
Assam: Capacity Development of the Assam Power Sector Utilities nal Report Distribution VIII-307
Performance withot rahisee
Leg Equtio
er
data Preset Year 1 Year 2 Year 3 Year 4 Year 5
d (Aual)
Total
ergy 1,043,84 1,139,59 1,245,83
e d lled 458,049 481 465 2 5
(Assessed)
(Units)
D Loss
(including P 3
theft)
ergy 1,256,40 1,80 1,491,20 1,99 1,

g (1 Inected 654,356
1 2 5 5
(Units)
h - - - - -
i FC - - - - -
U (Rs.) 45,805 948 95, 104,384 113,960 124,584
Potential
Revenue
i or lled non sPs18 2,98 2,435, 2,08 3,04 3,450,51
c* 4 3 8 0 2
RGGV
(Rs.)
Avg tariff
for non
c RGGV 4.21 4.21 4.21 4.21 4.21 4.21
connection
s
Avg tariff
for RGGV
l 2.65 2.65 2.65 2.65 2.65 2.65
connection
s
Potential
Revenue
1,005,94 1,046, 1,088,02 1,131,54
m d*l lled - 250 0 8 5 6
RGGV
(Rs.)
Total
Potential 1,930,18 3,135,23 3,441,01 3,25 4,160,06 4,582,06
m Revenue 4 3 8 8 3
(Rs.)
Total
revenue
o
realiation ss47 2,59 3,081,42 3,386,10 3,32 4,103,22
(including 4 1 1 5 3
arrears)(Rs
.)
Arrear
realisation

MERCADOS EMI - NDPL
Feeder
Legen Equatio
d n
(Annual)
Revenue
o/(1- Realization
1,598,83 2,597,02 2,850,31 3,132,14 3,445,92 3,795,48
q p/2) or for current
8 2 5 7 7 2
n*r consumptio
n (Rs.)
Collection
r q/j% 83% 83% 83% 83% 83% 83%
Efficiency
1-(1- AT&C
s 42% 42% 42% 42% 42% 42%
f)*r Loss
Revenue
realisable
per unit by
t q/g 2.44 2.07 2.08 2.10 2.12 2.13
ASEB
before
Expenses
u Bills served 87% 87% 87% 87% 87% 87%
v n/e Avg Tariff 4.21 3.56 3.59 3.62 3.65 3.68
O&M cost
per
Q 20% 20% 20% 20% 20% 20%
revenue
realization
Operating
Cost
R o*Q 345,695 561,518 616,284 677,221 745,065 820,645
(Annual)
(Rs.)
Revenue
net of 1,253,14 2,035,50 2,234,03 2,454,92 2,700,86 2,974,83
S q-R
operating 4 4 0 6 2 7
cost
Energy
1,256,40 1,367,80 1,491,20 1,627,99 1,779,76
g Injected 654,356
1 7 2 5 5
(Units)
ASEB
realisatio
T S/g n per unit 1.92 1.62 1.63 1.65 1.66 1.67
after
Expenses
Performance with Franchisee
Feeder
Equati
Legend data Present Year 1 Year 2 Year 3 Year 4 Year 5
on
(Annual)
c Energy 458,049 514,481 577,865 649,058 729,021 818,837

Billed non
Assam: Capacity Development of the Assam Power Sector Utilities nal Report Distribution VIII-309
AF MERCADOS EMI NDPL
Feeder
Legen Equatio
d n
(Annual)
RGGV
(Units)
Energy
Billed
d 000 379,600 394, 410, 426,
RGGV
(Units)
al
Energy
1,043, 1,139, 1,
e c+d Billed 049
2 7
(Assessed)
(Units)
D Loss
w (including 25% 21% 18% 16% 15%
theft)
Energy
e/(1- 1,172,64 1,211, 1,272,97 1,66 1,
x Injected
w) 1 1 3 9
(Units)
h EC -
i FC -
U ED (Rs.) 746 104, 113,960 124,
Potential
Revenue
1,930,1 2,167, 2,07 2, 3,072,04 3,
j c*k Billed non
4 3 0 2 7
RGGV
(Rs.)
Avg tariff
for non
k j/c RGGV 4.21 4.21 4.21 4.21 4.21 4.21
connection
s
Avg tariff
for RGGV
l 2. 2. 2. 2. 2. 2.
connection
s
Potential
Revenue
1,94 1,046,17 1,02 1,131,
m d*l Billed 967,
0 6
RGGV
(Rs.)
al
Potential 1,930, 3,23 3,441,01 3, 4,160,06 4,06
n j+m
Revenue 4 3 7 3
(Rs.)
al 1,47
o
revenue 4
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution VIII310
AF MERCADS EMI L
Feeder
Legen Equatio
d n
(Annual)
realiation
(including
arrears)(Rs
.)
p
Arrear
realisation

Revenue
Realiation
1, 2, 3, 3, 3,
y n*z for current
consumptio
3 0
n (Rs.)
z
Collection
Efficiency
89% 94% 95% 95% 95%
A
1-(1-
w)*z
AT&C Loss
B Bills served 100% 100% 100% 100% 100%
Revenue
Realied
1, 2, 3, 3, 3,
y for current
consumptio
3 0
n (Rs.)
Security
Deposit
(1.
n/12* 391,90
J
1.5 4
months)
(Rs.)
her
investment
K s by 100,000 100,000 100,000 100,000 100,000
franchisee
(Rs.)
L
I to 25%
Franchisee
Annual
122, 122, 122, 122, 122,
L*(J+K Earning to
M
) Franchisee
(Rs.)
Monthly
10, 10, 10, 10, 10,
Earning to
Franchisee
(Rs.)
Revenue
net of 2, 3,111, 3,21 3,
O y-M
franchisee 1 1
incentives
Assam: Capacity Development of the Assam Power Sector tilities Final Report Distribution II311
AF MERCADOS EMI L
Feeder
Legen Equatio
d n
(Annual)
Energy
1, 1,211, 1, 1, 1,
n Inected
1 1 3
nits)
Revenue
realisable
per unit by
P O/x 2. 2. 2. 2. 2.
Franchisee
before
Expenses
Total
a 1001 2123
Consumers
Billing Cost
C # (Monthly)
(Rs.)
Length of
D the feeder 68
(km)
Maintenanc
e Cost
E # 000 000 000 000 000
(Monthly)
(Rs.)
Operating
Cost
F C+E
(Monthly)
(Rs.)
Operating
Cost
G F*12 101
(Annual)
(Rs.)
Revenue
2, 2, 2,23 3,311, 3,
H O-G for ASEB

payment
Energy
1, 1,211, 1, 1, 1,
x Inected
1 1 3
nits)
Franchise
e BST
after
P H/x Expenses 1.84 2.14 2.32 2.44 2.53
and
Incentive
s
ASEB
realisatio
T n per unit 1.62 1.63 1.65 1.66 1.67
after
Expenses
Assam: Capacity Development of the Assam Power Sector tilities Final Report Distribution II312
Feeder
Legen Equatio
d n
(Annual)
Per unit
ED
charged
V 0.07 0.07 0.08 0.08 0.08
to
Franchise
e

Source Feedback
ntures Monthly Progress Report on Input sed Rural Franchisee Implementation in Assam
State Electricity
rd, Submitted to ct
Non-editable cells
Editable cells

Assam Capacity Development of the Assam Power Sector Utilities Final Report Distribution II-
AF MERCADO EMI - L
IX ANNEX TO HUMAN RESOURCE
1. HRSC ROADMAP MPP

a) Identify the key/priority senior management level positions in all three
utilities [Time* 2wks]
All positions level DGM and up in the three utilities

itions in the first two levels of top management in each utility (irrespective of cadre
level)
Any ey new non-management positions resulting from reform (e.g. new mareting
positions)
b) Develop skill/knowledge sets for each position [Time* 2wks]
Summary synopsis for each position
Technical sillsnowledge
Managerial and Leadership Competencies sillsnowledge
Any special sillsnowledge (such as negotiation slls)
c) Identify the gaps in these skill/knowledge sets for existing staff [Time*
2wks]
vey existing staff to determine which ones have a foundation of these sillsnowledge
For those having the foundation determine the gaps (i.e. that could be filled by training)
d) Determine which gaps can be closed by internal training and design

programs/recommend sourcing to do so [Time* 2wks]
Dovetail with any scheduled training of this consultancy

Design and deliver training programs
Determine appropriate external sourcing
e) Identify those positions for which there are no qualified staff (i.e. need to be
filled from outside [Time* 2wks]
Reconcile into the aforementioned short-term Recommended Approach To Recruitment lan
mes shown are for each step and assume dedicated effort so total time for item 7 of the R C
road map would be 5 x 2 = 10 ws (starting from RC in place)
1.1. CGM HR ROLE

oposed role
Bridge (i.e. based on organisational readiness and do-ability) between the development of
best MTraining practices and all three utilities
Key member of the R (acts as liaison with the three utilities and champions the
development of policy and process in uman ResourcesTraining
lp to facilitate integrate and communicate new developments in uman
ResourcesTraining within all three utilities but particularly Distribution
ition pecifications
Assam Capacity Development of the Assam er ctor tilities Final Report Distribution -314
AF MERCADOS EMI L
Experience
o Seasoned R/Training professional with minimum 1yearexperience in a large
infrastructure industry ( of those years in a senior management position, ideally in the
power sector).
o Minimum year senior line management experience in a utility.
o Proven excellent performance related to the above.
Education
o Post Graduate Degree or Certification in R/Personnel Management from a recognied
university/Institute, or an MBA degree
Skills and wledge
o owledge of electric utility operations
o owledge of the strategic role of uman Resources Management
o owledge of best practices (R/Training), preferably in the context of electricity sector
in India
o derstanding of the key functional areas of R/Training (i.e. salaries and pay scales,
service conditions and employee benefits, recruitment and selection, training and
employee development, manpower planning, ob evaluation, human resources
information systems and records, performance appraisal, organisational development,
legislation applying to staff, union relations, staff relations and dispute resolution, R
policy, employee engagement and motivation)
o Basic management skills (planning, budgeting, leadership, team building, organising,
delegating, staffing, performance management etc.)
o Excellent interpersonal skills (including motivating and engaging staff, conflict
resolution)
o Excellent communications skills (written, presentation, negotiating, mediating,
persuading etc.)
o
1.2. AUGMENTED HR AND TRAINING ORGANISATION

Priority Position Hiring Mode
Description Comment
(Term) (Location) (Number)
Q-W CGM R See CGM R Role best qualified A highly qualified R executive
who can provide leadership to the
(6 mo.) (headquarters) external (1) development and implementation
of all new R developments for all
three utilities
Q-W iversity See RSC TOR best qualified See RSC TOR
(6 mo.) MBA graduate external (1) For the
(headquarters)
Q-W Training Executive Internal

(6 mo.) (criteria and
competencies
to be defined)
Q-W Executive First Batch to be trained best qualified Possibly each allocated to one of
Trainee (generic R training and the three (3) ones) Work duties
(6 mo.) worked in according to external (3) assigned to them in conunction
(entry level) process development) in each of two with the training
years)
Med. Executive Second Batch to be trained best qualified Possibly each allocated to one of
Trainee (generic R training and the three (3) ones) Work duties
worked in according to assigned to them in conunction
Assam: Capacity Development of the Assam Power Sector tilities Final Report Distribution
AF MCADOS EMI - NDPL
Priority Position Hiring Mode

Description Comment
(Term) (Location) (Number)
(2 yr.) (entry level) process development) external () with the training
Long Specifics To be Specifics To be determined Specifics To 1. staffing needs to be

determined be determined as
(2+yr.) determined processes developed and
professional, approved per SC
management and (1)
support staff 2. Based on National and
International benchmarks
there should be 1
staff
Specifics for these staff ,
specifications and hiring
mode will be contingent
on numerous variables:
processes in place, line
organisation, degree to
which the organisation
strategically manages its
human resource,
geography etc.
1.3. HIRING (APPOINTING) OF AUGMENTED HR AND TRAINING STAFF

TIMING
(from STEP METHOD COMMENT
start)
6 wk. re CGM Distribution Open competition Support by consultants

(external) in collaboration with
Director PM
e ANNE CGM le
Advertise externally see
ANN Sample ob
Postings and Ads
2 mo. re iversity MBA Collaborate with exceptional (rising

graduate university faculties star) MBA
graduate of the
Negotiate with post program
graduate MBA hire
grad should
Involve newly hired CGM represent best
and Chairperson practices in the
SC) in process Assam context.
Involve SC
2.5 mo. Orient SC, new CGM and 1-day orientation: Facilitated by Chair
of G MBA graduate overview situation, SC with support
SC T by consultants
and
See ANN Training
Program Trainees and
Management
2 mo. re Executive Trainees first Entry level external hire See ANN and
batch (5) Training
Collaborate with Organisation
university faculties to
identify bachelor leve
graduates
ANN Sample ob
Postings and Ads
Involve SC in process
Assam: Capacity Development of the Assam Power Sector tilities Final eport Distribution -
TIMING
rom STEP MET MMENT

start)
Involve newly hired CGM

HR in process
2 yr Execute Training program for See ANNEX Training

HR Management Trainee Program HR Trainees and
Management
2 mo Hire HR Executive Trainees Entry level external hire See ANNEX HR and
second batch (5) Training
Collaborate with Organisation
university faculties to
identify bachelor level HR
graduates
ANNEX Sample Job
Postings and Ads
Involve HRSC in process

Involve newly hired CGM
HR in process
1.4. HR MANPOWER MODULE EXAMPLE FOR SUBDIVISION/ DISTRIBUTION

Benchmark: NDPL
Consumers 21,000
Feeders 750 nos., 11kv feeders
Distribution transformers: 3400
Manpower (M) (NosCategories Engineer Linemaniploma
lders Accountant and rocesses()
Headed by: Asst Engineer

P:Consumer services: Take small applications/complaints
o M:1 telephone operator per shift (Total no.4 telephone operators)
P: Fault repairs/meter burns/no supply complaints
o M: 1lineman 3 labourers per shift (Total No.4 lineman;12 labourers)
P:Scheduled work- connects and disconnect for small consumers
o M:General shift: 1 Jr. Engineer; 1 Lineman; 2 labourers
P: O&M activities like breakdown maintenance and preventive maintenance of transformers,
lines, substation
o M: General shift mtc.11kv : 1 Jr Engineer ;3 lineman 6 labourers
P: Billing - meter reading, meter replacement; bill preparation, bill distribution, collection
collect from small consumers,
o M: Subdivision wise- Norm meter readers 300 consumers /day and bill distribution
o Bill preparation done in back office
P: Collection
o M:General shift 1 van driver + 1 cash clerk; 1 cash clerk per collection counter (2-3
collection counters depending on the customer
1.5. HRSC ACTION PLAN(S)

Consultant Recommendations or eparation o Action ans
The following action plans (revisions) are recommended:

An Action Plan for the first quarter
Assam: Capacity Development of the Assam Power Sector Utilities Final Report Distribution IX-317
An Annual Action Plan ar One for the first year that builds on the Action Plan for the first
quarter
Action Plans for quarters III- of the first year that are revisions of Annual Action Plan ar
One
An Action Plan for ars One Two
An Annual Action Plan ar Two for the second year that builds on the first Annual Action Plan
ar One as well the Action Plan for ars One Two
Action Plans for quarters III- of the second year that are revisions of Annual Action Plan
ar Two
An Action Plan ar Three and yond (this plan must of necessity be based largely on
roectionsemanating from all previous action plans)
Consultant Recommendations for Priority Order of Business for HRSC (Action Plans)
The HRSCs first order of business should be to develop two action plans
1. The first quarterly Action Plan per the HRSC terms of reference (Number One Priority).This
plan should include (a) deliberation by the HRSC on and gaining approval of the roadmaps
recommended by the Consultants for each recommended action (b) development and
distribution of a Communication Plan as described in the action plan section of this report (i.e.
a plan that encompasses the HRSC terms of reference/modus operandi membership and on-
going versions of HRSC quarterly action plan and thoroughly taking into account a distribution
to all that need to know (senior management affected management all stakeholders
involved etc.) and (c) specific role of the HR consultants with respect to each action step
within the time period of the consultancy (this portion of the first quarterly action plan may
have to be revised as needed in subsequent action plans
2. An Action Plan for ars One Two
Mandatory Inclusions In Action Plans
Each Action Plan must cover
Detailed description of all actions (steps and sub-steps)
Sequencing and time targets for all actions
Goals of each action and measurement indicators
Monitoring and evaluation protocol
Communication requirements (all those that need to know)
Resource requirements (direct and indirect as applicable approvals as applicable monetary
and non-monetary etc.)
Responsibility assignments
Professional and management staffing requirements for HR and Training (skills and
knowledge required for HR/Training processes and related types and levels of positions..
Recommended Topics/Issues for HRSC first quarter action plan and Annual Action Plan
Year One
In this report the Consultants have provided (in the Action Plan sections) proposed roadmaps for a
number of HRM initiatives. The HRSC as it gets operational should drive these initiatives and include
them in HRSC Action Plans. The following table suggests how HRSC role should unfold.
ACTION ITEM DEVELOPMENT/IMPLEMENTATION
Enhance HR Function Minimal up-front role HRSC (input role medium term)
Enhance Performance Appraisal Priority involved role HRSC as soon as possible
Organisation Charts/Sanctioned Posts Input role by HRSC
New Organisation Structure Priority involved role HRSC assoon as possible
Manpower Norms (Distribution) Input role HRSC
Assam Capacity Development of the Assam Power Sector Utilities Final Report Distribution -
MERCADOS EMI - NDPL
Outsourcing Input role HRSC
Hiring of Law Officers Nil role HRSC
Human Resources Information System Priority involved role HRSC as soon as possible
Manpower Planning and Recruitment Priority involved role HRSC as soon as possible
Promotion Policy Priority involved role HRSC as soon as possible
Preparation for Cos. massive retirement -do-

process
Automated Attendance Records -do-
Motivational Dimensions, Incentives etc. -do-
1.6. HRSC TOR

Suggested Terms of Reference for Human Resources Steering Committee
1. COMPOSITION
Chairperson: to be appointed by the CMD, ASEB. Appointee to be well versed in Human
Resources Management/Development (including HR policy and processes and implementation
of same) and the role of strategic Human Resources Management
New CGM HR
Representative appointed from PMU
Appointee CGM level or higher of CMD Disco (APDCL)1
CGM HR Genco (APGCL)1
Appointee CGM level or higher of CMD Transco (AEGCL)1
Ex officio representative(s)of A Mercados team
Ex officio representative University MBA HR graduate

ecretarial support person(s4
Notes: 1 In selecting representatives from each of the three utilities the CMDs will collaborate to
endeavour to achieve experience background/representation from Operations, HR and inance on
HRSC in their choices. In the case of Genco the current incumbent is CGM HR: if this is the case at
the time of selection, then the CMDs Transco and Disco should endeavour to achieve the
representation of Operations and inance in their selections. Additionally, each appointee must be
either located in the Bijulee Bhawan or be able to attend HRSC meetings there.
The role of the ex officio representative(s) of the Mercados team will transpire as follows: (a)
interchange between the National and International HR experts according to issues being deliberated
(b) participation by them will be for the most part remote (i.e. email) (c) they will be thoroughly
informed of all HRSC actions (meeting notices, agendas, minutes, reports etc.)and where applicable
be given reasonable lead times for making input (d) their role will be solely to advise, support and
facilitate (especially as relates to the HRSC quarterly action plan and monitoring of same) and (e)
their role will cease once the role of the A Mercados consultancy ends. However the benefit of a
HRSC will continue into the requisite medium and long term change process for HRM, Training and
Capacity Building.
The hiring of MBA could provide administrative and secretarial support to the HRSC ands/he could be
part of the nucleus for enhancement of the HR function as recommended in the Interim Report
The MBA HR graduate referred could help with meeting reports, but a secretarial person will be
appointed to do the actual preparation of meeting reports and other documents required by the HRSC
2. MODUS OPERANDI (REPORTING/APPROVALS)
The HRSC, once it has finalised a specific recommendation (be it policy, process, program,
research/development action, quarterly action plans etc.) will submit it to the CMD Disco
(APDCL) for approval.
Assam: Capacity Development of the Assam Power Sector Utilities nal Report Distribution -
All such recommendations submitted by the HRSC will include information on resource
requirements budgetary staffing use of eisting process and staff etc.
The CMD Disco ADC will consult with the CMD Genco AGC and CMD Transco AEGC
before approving a recommendation. In cases where a recommendation or part of a
recommendation is not acceptable to one of the utilities the matter in dispute will be referred
back to the HRSC to resolve such that there is a consensus if the matter cannot be resolved
then any of the three CMDs may approve those portions of the recommendation that are
acceptable.
The Chairperson of HRSC may recommend changes deemed necessary in the membership of HRSC if
such changes are consistent with the composition structure guidelines above. Such recommendations
will be submitted for approval to the CMD Disco ADCL or the CMD Genco AGCL or Transco
EGCL as applicable.
3. MODUS OPERANDI (MEETINGS)

The HRSC will meet as a committee of the whole at least weekly for three hours at atime to
be determined by the committee.
The HRSC may determine sub-committees or task groups that will determine their respective
additional meeting times.
A qrterly meeting schedule will be agreed to by the committee and be communicated to all
members of HRSC and as indicated in the communications section below. This schedule will
to the etent possible include meetings of any sub-committees or task groups.
The Chairperson with support of the secretary and University MA HR graduat will ensure
that a record of attendance is kept of all HRSC meetings. If a members attendance is not
satisfactory the chairperson will try to correct the situation one-on-one with the member
ncluding determining valid reasons but if this fails the unacceptable attendance will be
reported to the members CMD
If a member can reasonably know in advance that s/he cannot attend a meeting then an
appropriate substitute can attend the meeting.
The qum for regular weekly meetings of the HRSC will be the Chairperson or if necessary
a substitute from MU and at least one person from each of the three utilities including
appropriate substitutes as applicabl.
Reports of all meetings will be kept and communicated as follows reports of regular weekly
HRSC meetings to all members of the HRSC reports of sub-committee and task group
meetings to members of these groups and as indicated in the communications section below.
4. MODUS OPERANDI (ACTION PLANS)
The HRSC is reqred to work from/according to Action ans a determined qrterly by the
HRSC. The Action lans will be approved per the guidelines stipulated above for approvals
documented and communicated to all members and as indicated in the communications
section below.
Each qarterly Action lan which are revisions of the annual plans will a include
Descriptions of actions and goals Responsibility assignments riorities andT ime targets and
be monitored and reported for progress including a quarter end report
See also Anne HRSC Action lans

5. MODUS OPERANDI (COMMUN ICATIONS)
The HRSC will ensure that the following communications protocols are adhered t
The three CMDs will receive a current list of HRSC members HRSC qrterly action plans as
approved the quarter end progress report as well as the HRSC quarterly meeting schedule.
All managers from the manager level and up will receive a copy of the current list of HRSC members
and each annual and quarterly action plans. Sub-committees and task groups are epected as part of
their modus operandi to keep managers affected by their actions informed.
1.7. OUTSOURCING
One of the needs epressed during meetings with key stakeholders was to eplore areas of work that
could effectively be outsourced in Distribution.
sed on information from secondary sources the following are some findings
APDCLs review of their own experience of franchising under the RGVVY Scheme to determine
extending franchising to more areas.
Preventive Maintenance of Distribution Transformers (DTR) is outsourced to Agency, under

the direct supervision of Jr. Engr. in/charge, by some of the Utilities. The check list and the
plan for carrying out the preventive Maintenance is given by the Utility.
Bill distribution is outsourced by practically by all the Utilities.
Bill printing by some Utilities (MSEDCL) is also outsourced. Normally under this, transferring
of printable file to bill printer (for printing) takes place and the printer transfers all the printed
bills to the bill distributor.
Cash/Cheque collection through outsourcing by way of ATM, direct debit facility , drop boxes
etc in Urban areas and Mobile cash collection vans for rural areas is another area that is
outsourced.
Facilities Mgmt in corporate offices and field offices in urban areas.
Call centre operations- handling communication with the consumers, registering and tracking
consumer complaints.
Fuse call centre (at subdivision level) have a telephone attendant, one Lineman/ALM and
1ALM/Line helper team generally round the clock (for urban areas)-the Telephone Attendants
have been outsourced.
For various field O & M work , contract for supply of vehicles with drivers on 24 hours basis, is
given out on contract
Currently Outsourced Distribution in Assam
Sahayaks approx. 25 %
Billing Clerks approx. 20 %
Meter Readers approx. 50 %
Outsourced Distribution NDPL
Meter reading
Collection van drivers;
Telephone operators-complaints;
All Un skilled and Semi Skilled work like labourers accompanying lineman
Data punching for billing
1.8. PERFORMANCE APPRAISAL

1.r1. Dss A SMMAR F E EISNG RCESS
a) Audit all performance appraisals done in last 18 months for all Class I and II
employees (these records held by the current Director Personnel, ASEB)
For purposes of this audit format means a list all licle: (a) performance criteria (job
related skills, interpersonal skills, communication skills, managerial skills, position specific objectives
(targets), work ethic factors such as attendance, knowledge of policy, etc.); (b) education and
credential information recorded; (c) performance gap information recorded; and (d) employee
development and training information recorded.
The audit should outline the following for each type/position of Class I and II employee:
What appraisal format was/is used.
Outline and description (including rationale) of participants in the system (i.e. employee being
appraised, person(s) doing appraisal, person(s) approving/reviewing appraisal).
Outline time cycles for all participants.
Tally of completions done by participants in the system (i.e. records of completions), including
whether within prescribed time cycle.
Synopsis of documented performance plans/targets resulting from appraisals.
Record of linkage between performance plans/targets and subsequent appraisals.

Record of communication between participants (particularly to the person being appraised.
b) Summarise the existing process

Prepare a descriptive summary of the existing performance appraisal system that captures all of the
information garnered from the audit, including appropriate flow charting for each type/position of
Class I and II employee.
1.2. IDENTIFY RELEVANT PERFORMANCE CRITERIA

a) Reference Best Practices
Use the input of the National and International HR experts on benchmarks, as well as the relevant
information contained in the September 2010 PriceWaterhouse report
b) Agree on Performance Criteria for the Three Utilities

Taking into account 2.1 develop recommendations for the performance criteria for the Three Utilities.
In so doing (a) obtain input from the MD (or delegate) for each utility and (b) take advantage of
relevant previous suggestions contained in other consultancies of the technical Assistance of AD.
1.8.3. DEVELOP PERFORMANCE APPRAISAL SYSTEM FOR CLASS I AND II EMPLOYEES

Taking into account 2.3 develop recommendations for a Performance Appraisal System for Class I and
II Employees for each of three utilities. In so doing (a) obtain input from the MD (or delegate) for
each utility and (b) take advantage of relevant previous suggestions contained in other consultancies
of the technical Assistance of AD.
Note: it has been recommended that the HRSC deal with Performance Appraisal up-front as a priority
action item see Annex HRSC Action Plans. This action would involve a more thorough researching of
the required process.
1.9. SAMPLE ADS FOR CGM AND HR EXECUTIVE TRAINEES

1.9.1. CGM HR
Chief eneral Manager Human Resources
Assam Power Distribution Company Limited
An exciting opportunity for an experienced HR executive to participate in the reform of the power
sector in Assam, while benefiting from the potential for excellent career growth. Attractive salary will
be commensurate with qualifications and experience.
This position involves providing Human Resources management leadership in the power distribution
utility, while also being a key member of a Human Resources Steering Committee developing
strategic HR policies and processes for the generation, transmission and distribution utilities.
The successful candidate will:
Have a degree from a reputable university, preferably with a post-graduate M degree in
Human Resources or equivalency in terms of other academic disciplines and course taken,
combined with experience.
Possess knowledge of: electric utility operations and electric power sector in
Assam/India, strategic role of Human Resources Management and knowledge of best
(HR/Training) practices preferably in the context of electricity sector in Assam/India.
able to demonstrate having the skills of a senior manager.
Have proven successful experience: at least five years in senior operations management in
a utility, at least five years in senior HR/Training management in organisations of 1000
employees and minimum 10 years of experience in ASE.
Interested candidates, with credible references are encouraged to apply.
1.9.2. HR EXECUTIVE TRAINEE

HR Executive Trainee
Assam Power Utility Companies
An exciting opportunity for a qualified current year graduate of a reputable university who is
interested in starting a career with huge potential in the Assam power sector utilities.
This position involves a regimen of training in Assams power sector at a time when the utilities are
poised to develop strategic changes in the way Human Resources are to be managed. While being
trained, through classroom courses aligned to the utilities context and on-the job assignments,
candidates will be groomed to take up challenging paths for career growth in Human Resources
Development (HRD) and Human Resources management (HRM)
The successful candidates will:
Have a degree from a reputable university, preferably with a post-graduate MBA degree in
Human Resources, although graduates of other academic disciplines, who can demonstrate an
interest in HRD and HRM, will be thoroughly considered
Possess skill attributes that suggest a promising career in HRD and HRM
Have excellent interpersonal skills (including motivating and engaging staff, conflict
resolution)
Have excellent communications skills (written, presentation, negotiating, mediating,
persuading )
Interested candidates with credible references are encouraged to apply.
1.10. TRAINING PROGRAM HR TRAINEES AND MANAGEMENT

1.10.1. HR ORIENTATION FOR HRSC
Once the Human Resources Steering Committee (HRSC) is established and the CGM HR and U of G
MBA HR are in place to conduct a 1-day orientation for all of them which provides an overview of the
HR situation in the three utilities and an explanation of the terms of reference for the HRSC. This
session should be collaboratively prepared by, and facilitated by the Chair HRSC and the HR
consultants.
1.10.2. CLASSROOM TRAINING FOR HR TRAINEES

a) Content
Overview of the electricity sector in India, challenges faced by Assam Electricity
sector
Electricity Act of 2003: its main features
Reforms in the Sector; with special reference to human resource management
Role of HR and Training in support of organisational goals (including overview of key
elements of strategic management of human resources)
Overview of the key functional areas of HRM (including, salary administration,
performance appraisal, employee communications, conflict resolution, HR policies, HR
programs, HRIS etc.)
Overview of Training in organisations (TNA, program design and evaluation, delivery
methods, training policy etc.)
b) Scheduling
Cumulative 8 weeks: 1 week modules spaced so that on-the-job training can be
performed in between
Plan to be developed by the senior HR management of each utility in conjunction with
the HRSC
ADOS I - NDPL
1.10.3. SOURCING OF HR TRAINEES

Local R conltants
visiting presenters (niversit tilities)
1.10.4. ON-THE JOB TRAINING (OF HR TRAINEES)

Rotational ob assignments to expose trainees to different fnctional areas of the
er ilities.
Wor assignments dovetailed ith developmental tass of RS
Plan to be developed the senior R management of each tilit in connction ith
the RS
Assam apacit Development of the Assam er Sector Utilities nal Report Distribtion -324

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Technical Assistance Consultants Report

Project Number: 41614

India: Capacity Development of the Assam Power

For Assam State Electricity Board (ASEB)

FINAL REPORT: VOLUME IV

ASIAN DEVELOPMENT BANK

ASSAM STATE ELECTRICITY BOARD

I BACKGROUND ................................................................................................ I-12!

1.! AS-IS ANALYSIS, BENCHMARKING PROCESS AND STANDARDS ............................... III-63!

2.3.! RECOVERY TIME OBJECTIVE - RTO ................................................... V-164!

IX ANNEX TO HUMAN RESOURCE ................................................................. IX-314!

Table 27 - Key NLCPR Schemes...................................................................................... VIII-274!

NOTES ON THE TEAM

Acronym Full Name

ABC Aerial Bunched Cables

AMR Automatic Meter Reading

ATC Aggregate Technical and Commercial

SRS Software Requirement Specification

ADB Asian Development Bank

AEGCL Assam Electricity Grid Corporation Limited

AERC Assam Electricity Regulatory Commission

APGCL Assam Power Generation Corporation Limited

APDCL Assam Power Distribution Company Limited

ASEB Assam State Electricity Board

BIS Bureau of Indian Standard

BMS Building Management System

BPR Business Process Restructuring

Cape Capital Expenditure

CAEDCL Central Assam Electricity Distribution Company Limited

CBIP Central Board of Irrigation and Power

CEA Central Electricity Authority

CENPEID Centre for Power Efficiency in Distribution

CERC Central Electricity Regulatory Commission

CTPS Chandrapur Thermal Power Station

CAIDI Customer Average Interruption Duration Index

CAIFI Customer Average Interruption Frequency Index

DoP Department of Power

DRUM Distribution Reform Upgrades and Management

DPR Detail Project Report

Acronym Full Name

Discom/Disco Distribution Company

EA Electricity Act 2003

ERC Electricity Regulatory Commission

ERP Enterprise Resource Planning

EHV Extra High Voltage

EHS Environment Health and Safety

ESP Electrostatic Precipitator

FTE Staff Full Time Equivalent

GAAP Generally Accepted Accounting Principles

GCC General Conditions of Contract

GCV Gross Calorific Value

Genco Generation Company

GOA Government of Assam

HRM Human Resource Management

IEGC Indian Electricity Grid Code

INR Indian Rupees

IEC International Electrotechnical Commission

IGNOU Indira Gandhi National Open University

Kcal Kilo Calorie

KPI Key Performance Indicator

KWH Kilo Watt Hour

L/C Letter of Credit

LAEDCL Lower Assam Electricity Distribution Company Limited

!+&(,-#./(!#.( $%2!86%( !+&( !+&(,9%6:2!85( !"$2;(&2$!#-(