History of BSES Delhi

History of BSES Delhi ORGANIZATION PROFILE: Following the privatization of Delhis power sector and unbundling of the Delhi Vidyut Board in July 2002, the business of power distribution was transferred to BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL). These two of the three successor entities distribute electricity to 22.6 lakh customers in two thirds of Delhi. The Company acquired assets, liabilities, proceedings and personnel of the Delhi Vidyut Board as per the terms and conditions contained in the Transfer Scheme BSES Yamuna Power Limited (BYPL) BYPL distributes power to an area spread over 200 sq kms with a population density of 4230 per sq km. Its 10.4lakh customers are spread over 14 districts across Central and East areas including Chandni Chowk, Daryaganj, Paharganj, Shankar Road, Patel Nagar, G T Road, Karkardooma, Krishna Nagar, Laxmi Nagar, Mayur Vihar, Yamuna Vihar, Nand Nagri and Karawal Nagar. BSES Rajdhani Power Limited (BRPL) BRPL distributes power to an area spread over 750 sq. km with a population density of 1360 per sq km. Its over 12.2 lakh customers are spread in 19 districts across South and West areas including Alaknanda, Khanpur, Vasant Kunj, Saket, Nehru Place, Nizamuddin, Sarita Vihar, Hauz Khas, R K Puram, Janakpuri, Najafgargh, Nangloi, Mundka, Punjabi Bagh, Tagore Garden, VikasPuri etc. Since taking over distribution, BSES singular mission has been to provide reliable and quality electricity supply. BSES has invested over Rs 3500 crore on upgrading and augmenting the infrastructure which has resulted in a record reduction of ATC losses. From a high of 63.1 % ATC losses in BYPL area in 2002 the losses have come down to 23% a record reduction around 40%.Similarly, in BRPL area ATC losses have been reduced from 51.2% to 20% a record reduction of 31% History / Origin of BSES Delhi The first diesel Power Station was established in Delhi in the year 1905 when a private English Company by name M/s. John Fleming was given permission to generate electricity under the provisions of the Indian Electricity Act 1903. It was given the responsibility both of generation and distribution of power in a limited manner. That Company after obtaining license under the provisions of Electricity Act 1903 had set up a small 2 MW Diesel set at Lahori Gate in Old Delhi. Later on, this very Company was converted as Delhi Electricity Supply and Traction Company. In the Year 1911, the power generation was augmented by Steam Generation Station. In the year 1932, the management of Central Power House was handed over to New Delhi Municipal Committee (NDMC). In the field of power generation and distribution, a major breakthrough was achieved in 1939 when Delhi Central Electricity Power Authority (DCEPA) was established. This Company was responsible for the supply of power to the areas covered by Local Bodies, namely, the Municipal Committees of Delhi, West Delhi and South Delhi, the Notified Area Committees of Red fort, Civil Lines, Mehrauli, Najaf Garh, amd the District Board of Delhi. The supply of electricity to the Municipal Committees of Delhi-Shahdara and the Notified Area of Narela was done by different private agencies. In 1947 DCEPA took over a Private Limited Company by name Delhi electric Supply traction Company Limited. Formation of Delhi State Electricity Board (DSEB) In the year 1951 the Delhi State Electricity Board (DSEB) came into existence and the responsibility of generation and distribution of electricity was taken over by DSEB from DCEPA. Formation of Delhi Electric Supply Undertaking (DESU) After the promulgation of the Delhi Municipal Corporation Act 1957, the DSEB was dissolved and the functions of DSEB were taken over by Delhi Electric Supply Undertaking (DESU), which came into existence in 1958. After the formation DESU, the generation and distribution of electricity to all the areas of Delhi came under DESU. Formation of Delhi Vidyut Board (DVB) The Government of the National Capital Territory of Delhi vide notification No. F.11 (10)/92-LSG /PF (II) dated 24.02.1997, issued under the Electricity (Supply) Act, 1948, constituted a separate Electricity Board, i.e. the Delhi Vidyut Board (DVB) for the NCT of Delhi w.e.f. 24.02.1997 for the purpose of generation and distribution of power to the entire area of NCT of Delhi except the areas falling within the jurisdiction of NDMC and Delhi Cantonment Board. Unbundling of Delhi Vidyut Board (DVB) The Delhi Vidyut Board (DVB) was a State Electricity Board set up in 1997 under the Electricity (Supply) Act, 1948, succeeding the Delhi Electricity Supply Undertaking (DESU) which has existed since 1957 as a wing of the Municipal Corporation of Delhi. It was an integrated utility with generation, transmission and distribution functions serving all of Delhi except the NDMC and MES (Cantoment) areas to which it supplied power in bulk. The creation of DVB, replacing DESU, is 1997 proved to be merely a change in the legal status of the organization and was not followed by any real change in its structure, functioning and work culture. Its reputation continued to deteriorate and its poor commercial performance, the best known thing about DVB perhaps being its high Transmission and Distribution (TD) losses made it a drain on the public exchequer. Further, failure in raising the resources necessary for improvement of its services made matters critical. There were unprecedented, widespread expressions of public discontent during the difficult summer of 1998. In December 1998 when the present government came to power in Delhi, the power situation was grim to say the least. With T D losses as high as 50% regular power cute for 10 to 15 hours and Delhi Vidyut board accumulating liabilities of over Rs. 23,000 crores, Delhi government had to come up with a fast and viable alternative. An alternative that would not only meet peoples aspirations in terms of its end result but also be interesting enough for investors. And thus began a step by step process of a never-before fundamental power reform. Delhi Electricity Board Regulatory Commission (DERC) was constituted in May 1999 whose prime responsibility was to look into the entire gamut of existing activity and search for various ways of power sector reforms. The DERC is even today a fully functional body which has since issued tariff orders for annual revenue requirement. Delhi Electricity Reform Ordinance, 2000 was a body which was promulgated in October 2000 and notified in the form of an Act in March 2001. It mainly provides for the constitution of an Electricity Regulatory Commission, unbundling of DVB into separate generation, transmission and distribution companies and increasing avenues for participation of private sector. This was followed with a Tripartite Agreement which was signed by the government of Delhi, DVB employees to ensure the cooperation of stakeholders in this reform process. The tripartite agreement sent off very positive vibes to the people in general as well as to the investor community about the sincere and hassle-free objectives of power reforms. Next, a two stage competitive bidding process of Request for Qualification (RFQ) and Request for Proposal (RFP) was set into motion for privatization of the distribution companies. The bidders were selected on the basis of reduction of total Aggregate Technical and Commercial of losses (AT C) a unique feature of the power sector reforms in Delhi. The bidders were required to bid on the basis of efficiency improvement like reduction of AT C losses that they achieve year wise over a period of five years. Finally Delhi Vidhyut Board was taken over by two giants the TATAs and The Reliance ADA group ie. Reliance Energy Ltd. The two firms took control of 51 per cent shares in the three distribution companies. The DVB was formally unbundled into three distribution companies (Discoms), a generation (Genco), transmission (Transco) and a holding company. The DVB claimed that it had completed the process of dividing its mammoth staff of 24,000 employees, office property and records which would be divided among its six successive companies. BSES got 12,900 DVB employees to manage distribution operations like supplying electricity, metering, billing, controlling thefts and technical and commercial losses in central, east, south and west Delhi. About 5,200 DVB staff was transferred to Tata Power to manage similar operations in north and northwest Delhi. The state government maintained full control on Genco and Transco. Each of the two companies got 4,000 employees. DVBs two members (technical) were transferred as head of Genco and Transco. CORPORATE VISION AND MISSION: Vision To be amongst the most admired and most trusted integrated utility companies in the world. To deliver reliable and quality products and services to all customers at competitive costs, with international standards of customer care- thereby creating superior value for all stakeholders. To set new benchmarks in: standards of corporate performance and governance, through the pursuit of operational and financial excellence, responsible citizenship and profitable growth. Mission To attain global best practices and become a world-class utility. To provide: uninterrupted, affordable, quality, reliable, safe and clean power to our customers. To achieve excellence in: service, quality, reliability, safety and customer care. To earn: trust and confidence of all customers and stakeholders by exceeding their expectations, and make the company a respected household name. To work: with vigour, dedication and innovation keeping total customer satisfaction as the ultimate goal . To consistently achieve: high growth with the highest levels of productivity. To be: a technology driven, efficient and financially sound organisation. To be a responsible corporate citizen nurturing human values and concern for society, the environment and above all, people. To contribute: towards community development and nation building. To promote a work culture that fosters: individual growth, team sprit and creativity to overcome challenges and attain goals. To encourage: ideas, talent and value systems. To uphold the guiding principles of: trust, integrity and transparency in all aspects of interactions and dealings. ORGANIZATION STRUCTURE Two basic forms of organizational structures can be distinguished as below: The following chart depicts the organizational structure as it is existing in 2009. The hierarchy is much flatter than it was earlier, and as such, more organic as well. Thus it has left the mechanistic realms and become more complex and horizontal diversification, which has not only improved the work culture but has also enhanced the quality of service it provides to its customers which is totally evident through the tremendous decrease in ATC losses. Functional Structure Both BRPL and BYPL perform similar functions but for different areas. So the basic framework remains the same. CORE VALUES People at REL believe that any business conduct can be ethical only when it rests on the nine core values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and Caring. Strong commitments to these high values have long been building principles for Reliance Energy Ltd. EVALUATION OF BSES Delhi BASED ON 7S MODEL The 7 S Model provided by McKinsey is a framework for analyzing organizations and their effectiveness. The basic premise of the model is that an organization is not just a structure, but actually consists of seven elements. Strategy: The company plan or route-map to maintain competitive advantage Structure: The company hierarchy Systems: The day-to-day processes and procedures throughout the company Shared Values: The core values of the company Style: The company leadership style Staff: The companys employees and their broad abilities Skills: The skills and competencies of employees The central theme of the model is that the seven elements are interconnected and interdependent upon one another. In order to achieve business success, each of the seven elements must be aligned and mutually reinforcing each other. Effecting change using this model involves the assessment of all areas, simultaneously taking into account their nature and effect on each other. At BSES, REL has taken a lot of initiative to gel all the 7 aspects together so as to improve the functioning of the company. Employee Resistance to Change Change is a common occurrence within organizations, and resistance to change is just as common. There are several types of resistance to change. Acquisition of DVB by private companies was a huge change that was to be accepted by the employees. So in most of the cases a resistance was generated amongst the DVB employees. More than 50% of the employees chose to take up voluntary retirement scheme which was offered to them. The scheme was open to all regular employees who had completed 10 years of service from the date of joining Delhi Vidyut Board or had attained the age of 40 years. A company spokesperson believed that there was an additional unique concept in the voluntary retirement scheme which entitled the employees to enhanced additional benefit if the number of voluntary retirees crosses the threshold level. This was a benefit which had never been given in any voluntary retirement scheme in a utility before. Resistance to change can be broken down into three groups: organization-level resistance, group-level resistance, and individual-level resistance. Each of these groups can be broken down further. Organization-Level Resistance Organization-level resistance includes resistance to change due to power and conflict, differences in functional orientation, mechanistic structure, and organizational culture. Power and Conflict Resistance to change due to power and conflict occurs when a change may benefit one department within the organization while harming another department within the organization. Functional Orientation Resistance to change due to differences in functional orientation occurs because employees or departments with different functions will see problems and issues differently, thus making it harder to come to an agreement regarding change. Mechanistic Structure Resistance to change due to mechanistic structure occurs because employees working within a mechanistic structure are expected to act in certain ways and do not develop the initiative to adjust their behavior to changing conditions (George et al.). Organizational Culture Resistance due to organizational culture occurs when organizational change disrupts the values and norms within the organizational culture. Group-Level Resistance Group-level resistance includes resistance to change due to group norms, group cohesiveness, and groupthink and escalation of commitment. Group Norms Resistance due to group norms occurs when change alters interactions between group members due to changes in task and role relationships within a group. Group Cohesiveness Resistance due to group cohesiveness occurs because members of a cohesive group wish to keep things, such as members or tasks, the same within the group. Groupthink and Escalation of Commitment Resistance due to groupthink and escalation of commitment occurs because members ignore negative information, even when they realize that their decisions are wrong, in order to agree with each other, thus making a change in group behavior incredibly difficult. Individual-Level Resistance Individual-level resistance includes resistance to change due to uncertainty and insecurity, selective perception and retention, and habit. Uncertainty and Insecurity Resistance due to uncertainty and insecurity occurs because employees do not know what the outcome of the change will be. Selective Perception and Retention Resistance due to selective perception and retention occurs when employees direct attention to how the change will affect their department, their function, or them personally. Habit Resistance due to habit occurs when employees are comfortable in their daily habits and do not want to alter them due to change. Management at BSES took following actions tol reduce resistance due to uncertainty and insecurity. Education and communication: Management explained why the change was done, identified the benefits of the change to individuals and departments, and became willing to answer all questions as they arise. Topics regarding the change that were covered were why, what, when, where, and how. Communication between management and employees was carried out in the form of discussion groups, memos, formal reports, scheduled meetings, one-on-one meetings, etc. Verification of the message received: Employees were asked to repeat the message they received, and management compared the message received with the message management intended to send. If there was a discrepancy between the message received and the message sent, then management repeated the message until employees stated a message received that matches the message sent. HUMAN RESOURCE POLICY FRAMEWORK The liberalizationof the power sector in India has paved way for new business opportunities and has redefined the nature of the power business. Envisioning future and to make the power sector credit worthy and capable of funding future investment needs, these reforms have opened arenas for new technologies. In this new environment of opportunities, REL with its competitive edge of resources is playing a key role in the transformation process and aims to emerge as a world class power utility offering uninterrupted, affordable, quality, products and services to all customers at competitive costs, with international standards of customer care thereby creating superior value for all stakeholders. To achieve this vision REL believes that investment in people and their potential is one of the greatest investments we can make. For this, we are constantly in search of talent that can perform excellently with determination and win. Its HR systems and policies are thereby designed to unleash the latent capability of its people by fostering a continuous learning and performance based culture where its people have the opportunity to grow and succeed and realize their true potential while delivering high quality services. To achieve these objectives its HR Policy is pivotal and aims to: Achieve organizational and business goals with firm belief that Its Employees are its Future. Haveempowered and accountable employeesto take decisions in response to emerging challenges and opportunities in a competitive environment. Endeavor to make its employeesThe Bestwith an urge for and commitment to excellence. Reliance Energy Ltd. offer opportunities for growth that can fill a career. Careers at Reliance Energy Ltd. are built in course of its concept of forming a team of people or individuals who are made responsible for specific functions; from concept to development to implementation, with concomitant empowerment. Reliance Energy Ltd. provides employees seamless merging of functional roles, to provide a sharper business focus groom employees for larger responsibility across industry sector. We believe, working smarter would mean not just doing a given job well, but also stretching it into a mini profit-making project. As the transition from the old HRD to the New People Management has materialized, the HR function at Reliance Energy Ltd. has begun to play a role much broader in scope, much stronger in impact much more permanent in effect. Career Opportunities: Exposure to Latest technological know-how World class management practices Multifunctional skills Customer Relationship Management Exposure to Regulatory, Legal and Contractual aspects of business Fast track growth Recruitment: Woven into strategic planning, recruitment in Reliance Energy Ltd. no longer involves short-term vacancy or the annual ritual of Campus Recruitment. Translating corporate strategies into a manpower plan developing a long term programme accordingly, Reliance Energy Ltd. is tracking down people with the combination of knowledge, experience, skills behaviour best suited to achieving the companys objectives. The focus of Recruitment: Attract people with multi dimensional experiences skills Induct talent with a new perspective to lead the company Develop a culture that attracts people to the company Locate people whose personalities fit the companys values Devise methodologies for assessing psychological traits Seek out unconventional development ground for talent Design entry pay that competes on quality as well as quantum Anticipate find people for positions proactively Induction: A formal induction programme is organized for all the new employees A structured Induction programme is carried out for: Lateral Joinees This provides a general overview of the organisation to the new recruits and familarises employees with various business processes, culture, business practices of the company It also covers soft skills modules like Team Building, Change Management, Communication etc. Graduate Engineer Trainees (GETs) All the GETs undergo a one-year induction training programme. The induction programme contains the following: Technical Training On the Job training Class room training Functional Training Managerial Skill Development Performance Management: To ensure that the talent we have attracted can help us achieve our goals, we create appropriate working conditions, by adopting following steps: Evaluating all jobs so as to assign them to the individuals best suited for them Designing customized jobs, if necessary, using techniques drawn for behavioural sciences industrial psychology Creating manpower configurations to boost the ability of the individuals Through it all, balancing corporate employee interests by designing individual career paths. Objective of its Performance Management System (PMS): Create a culture of excellence that inspires every employee Match organizational objectives to individual aspirations Equip people with the skills necessary to perform their duties Clear growth paths for specially talented individuals Provide new challenges to rejuvenate plateauing careers Forge a partnership with people for managing their career Empower employees to take decisions without fear of failing Imbibe teamwork in all operational process Performance Appraisal System: The Performance Appraisal System in Reliance Energy Ltd. provides for Recognition of individual performance Continual learning and development Better skills and employability Monetary and other rewards The achievement of the organizations goals Increased productivity and profitability A motivated workforce Performance Appraisal Process Managers distribute Professional Self-Assessment form to direct reports for completion. Training Performance Appraisals are completed and forwarded to upper management for review and approval. Performance Appraisals are forwarded to Senior Executives for review and approval. Performance Appraisals are forwarded to the Human Resources Department for review and approval. Human Resources returns the approved Performance Appraisals to Managers who conduct individual performance discussions with the employee. All signed Performance Appraisals are returned to Human Resources Training Development: With the changing business environment becoming more more dynamic, a need on a continual basis for improved domain expertise is the need of the hour. The core function of our training department is to bridge the gap between the Changing requirements of the job the abilities that individuals need to perform these tasks such as self-directed leadership, self-motivated teams self generated creativity to excel in their respective areas of performance. Objective of Training Development (TD) Department: Make learning one of the fundamental values of the company Commit major resources adequate time to training Use training to bridge the gap with the external work Integrate training into initiatives for change management Use training as a developmental tool for individuals Link organizational, operational individual training needs Install training systems that substitute work experience Ensure that training allows the staff skills to bloom Use retraining to continuously upgrade employees skills Create a system to evaluate the effectiveness of training LATEST EVENTS AT BSES Delhi Facing mounting criticism for mismanagement in power supply in the city, Reliance Energy-backed power discom BSES on Thursday removed its CEO Arun Kanchan and appointed separate CEOs for two distribution companies. Ramesh Narayanan, senior vice president of the company, has been appointed CEO of BSES Yamuna Power Ltd (BYPL), while Gopal Saxena, COO, would be the new CEO BSES Rajdhani Power Ltd (BRPL). Corporate Social Responsibility (CSR) Energy Conservation is the need of the hour. And awareness about it is the key. And the best method of spreading awareness about this growing international concern is to catch them young. Addressing this objective and to further broad base its emphasis on Energy Conservation, BYPL has conceived Bijli Gyan Abhiyan (March 08) a mammoth initiative targeting thousands of students across 500 schools in East and Central Delhi. The Delhi Government and BSES had signed an agreement for beautification of the Capital through a new Green Drain project as part of World Environment Day celebration. Under the Green Drain concept unveiled by the Delhi Government on the occasion of Earth Day on April 2209 some of Delhis dirtiest drains are being given over for adoption and beautification to interested parties. Under the concept, the selected parties will beautify the drains by planting and maintaining Bougainvilleas along their allocated stretches. Explaining the rationale behind choosing Bougainvilleas, a BSES official said: These pretty-looking plants, besides being hardy, need minimal maintenance and are best suited to Delhis climate. BYPL signs 1strenewable energy PPA, to buy power fromDelhis 1stCity waste to power initiative (Nov09). Around 1200 tonnes of Municipal Solid Waste (MSW) will be processed daily. Gas generated from a 10 MW MSW power plant yields reduction in greenhouse gases equal to planting 1.19 lakh trees or removing 83,000 cars for a year. Power plant to power around 4000 middle class homes. REFERENCES Websites: www.bsesdelhi.com www.wikipedia.org www.rinfra.com www.indiatoday.intoday.in www.thehindu.com Textbook: Organizational Theory, Design and Change by Gareth R. Jones Management: Er. (Mr.) B.P. Verma (Asstt. VP , Commercial department BRPL) [DVB Employee] Mr. Ravi Kohli (Divisional Commercial Officer, BRPL) [CTC employee]