Technical Assistance Consultant's Report: (Financed by The Japan Special Fund Funded by The Government of Japan)

Technical Assistance Consultants Report
Project Number: 41614

September 2010
India: Energy Efficiency Enhancement Project in

Assam
(Financed by the Japan Special Fund funded by the Government of
Japan)
Prepared by
Pricewaterhouse Coopers Pvt. Ltd.
India
For Assam Power Distribution Company Limited
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. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed projects design.
PricewaterhouseCoopers Global Network: Energy, Utilities & Mining Practice
Performance Improvement Advisory
Building Organizations
Redesigning the Organization Structure

Assam Power Distribution Company Limited (APDCL)
Redesigning the Organization Structure for APDCL
Table of Contents
Introduction .....................................................................................................................................................................3
Background of the Assam State Electricity Board ..................................................................................................... 3
Background of Assam Power Distribution Company Limited ..................................................................................... 3
Scope of this Study.................................................................................................................................................... 4
Objective of the Study ............................................................................................................................................... 5
Approach & Methodology for the study ...................................................................................................................... 5
Structure of the Report .............................................................................................................................................. 7
AS-IS Analysis and TO-BE Recommendations ............................................................................................................8

The Reporting Hierarchies in APDCL ........................................................................................................................ 8
Human Resource Profiling ......................................................................................................................................... 8
Age Profiling ....................................................................................................................................................... 10
Retirement Profiling ............................................................................................................................................ 11
Board Level: Board of Directors of APDCL .............................................................................................................. 12
Corporate Level: Structural and Functional Analysis of the Corporate Office .......................................................... 28
CGM F&A ........................................................................................................................................................... 28
CGM Commercial and Tariff ............................................................................................................................... 32
DGM HR ............................................................................................................................................................. 36
CGM LAZ, UAZ, CAZ ......................................................................................................................................... 39
CGM Project & Planning ..................................................................................................................................... 41
Director PMU ...................................................................................................................................................... 41
Director Security and Vigilance ........................................................................................................................... 42
Rural Electrification ............................................................................................................................................. 46
Field Level: Structural and functional analysis of the field office .............................................................................. 49
Conclusion ....................................................................................................................................................................53
Annexure 1: Benchmarking of Organization Structure.......................................................................................... 56
Annexure 2: Stakeholder Discussions: Key Points Discussed.............................................................................. 61
Annexure 3: Tentative List of Various Full Powers ............................................................................................... 62
PricewaterhouseCoopers Page 2 of 63
Introduction
Introduction
Background of the Assam State Electricity Board
The Assam State Electricity Board (ASEB) was unbundled into five companies
by the state Government of Assam (GoA) in December 2004 under the
provisions of Electricity Act, 2003. The companies that were formed were Assam
Power Generation Corporation Limited (APGCL), Assam Electricity Grid
Corporation Limited (AEGCL), and three distribution companies named Lower
Assam Electricity Distribution Company Limited (LAEDCL), Upper Assam
Electricity Distribution Company Limited (UAECL), and Central Assam Electricity
Distribution Company Limited (CAEDCL).
The objectives of unbundling were to encourage efficiency, improve the quality
of service and increase the accountability of the management. Experience of the
last 6 years of unbundling suggests that though the Assam power sector has
improved, much scope for improvement in efficiency still remains. Some of the
main issues impeding the successful implementation of unbundling are:
Partial autonomy with regard to financial management: The newly
formed generation, transmission, and distribution companies continue to be
partially autonomous with regard to financial management and operate
under a centralized cash flow mechanism. These expenses have been
prioritized among various heads. Financial management functions such as
investment, funding, and budgeting decision making are being carried out in
consultation with ASEB.
Paucity of well-trained staff: This has resulted in dual charges for
positions that require specialized skills among companies. This leads to
delays in decision making and restricts the introduction of new initiative
within the companies.
Employees running as a unified cadre: Despite the reorganization of
ASEB and the implementation of a staff transfer scheme, employees in the
successor companies have actually run as a unified cadre to protect inter-se
seniority and promotional avenues across the companies. Promotion of the
employees of the rank of Senior Manager (SM) and above is done through
the common seniority list maintained by ASEB for all companies. This is
counter-productive for the employees and for the companies in the long-run
as it prevents the successful implementation of a company-specific structure
aligned with company level objectives and prevents the ability to build
necessary competencies that are essential for each company.
Background of Assam Power Distribution Company Limited

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 wef 1st April, 2009.
Subsequent to this, fresh certificate of incorporation consequent upon change of
name was taken for LAEDCL. Therefore, with effect from 23 Oct 2009, the name
of LAEDCL was changed to Assam Power Distribution Company Limited

(APDCL).
APDCL distributes electricity to all consumers in the state of Assam and has
about 15 lakh consumers. Assam has a total area of 74438 Sqkm, out of which
35.48% area is covered by forests.
The broad role of the APDCL is as follows:

To run the organization on commercially acceptable principles
To plan and expand the distribution capacity of the state network in order to
increase reach to consumers and reduce aggregate technical and
commercial losses
To build and expand distribution network capacity to enhance reach to
customers
To interact with the State electricity regulatory commission(AERC) for
approval of distribution tariff and expenses
To operate and maintain the distribution line and substations in 33kv and
below voltages
To enter into Power Purchase contracts with bulk suppliers including State
owned Genco, Central Sector Generating Stations (CSGS) and Independent
Power Producers (IPPs)
To undertake and load analysis and system studies to improve availability of
network and improve reliability
To maintain commercially sound systems for billing to collection of existing
consumers
The merger of two distribution companies into the third distribution company is
among the key drivers for re-designing the Organization structure of APDCL.
Scope of this Study

The overall scope of this study includes:
Reviewing and benchmarking of the existing organization structure with
other well-performing utilities and proposing appropriate head office and field
organization structures for each company, given the overall objectives of the
company
Undertaking a human resource profiling exercise of the employees in
successor companies
Analyzing and presenting options for a promotion policy that addresses
concerns regarding immediate transition and evolving requirements over a
five year period across successor companies
Reviewing the efficacy of the existing performance management system and

proposing options to make it more objective and aligned to each successor
company objectives
Proposing Key Performance Indicators for each company and analyzing
alternatives for an employee performance linked incentive scheme for each
organization in consultation with the companys top management. This
should draw from experiences in other similarly placed organizations in the
country.
This report pertains to study of re-designing the Organization structure for

APDCL.
Further, the study under this report is restricted upto the level of SM & above.
The study pertaining to AM & below including non-executive workforce is not
covered under this report.
Objective of the Study

The objectives of carrying out this re-designing of organization structure are:
To develop an organization structure at the corporate and field level and
bring broad functional clarity and accountability
To study the apex structure of few Indian utilities and recommend the
appropriate structure
To carry out human resource profiling and analyse the age and retirement
pattern for each organization
Approach & Methodology for the study

PwC has developed a comprehensive organizational design methodology to
assist with structural design, role design, associated linkages and performance
measures. The same is shown pictorially below (source: PwC Gateway):
STAGES
STAGES
Assess Design Construct Implement/

Operate
PHASES
Determine Assess Agree Design Develop Construct Develop Migration and

Business As-Is Improveme To-Be Implementati Organizati Migration Implementati
Needs Environme nt Environme on Strategies on and on
and nt Opportuniti nt Changes Implementati
Benefits es on
Plans
DESIGN REQUIREMENTS
Job Structural Comp Linkage Team Perform

Descript Changes Plans s R&R ance
PricewaterhouseCoopers ions Mgmt Page 5 of 63
This report is limited to the study of organization structure for APDCL. The
following approach was adopted while designing the same for APDCL:
Understand Business Context, Expansion plans;

Understand and review the existing hierarchy, the
functional responsibilities, the reporting
mechanisms, the main functional areas and the
geographical spread of operations etc.
Field visits were

Benchmarking
conducted to Jorhat,
with different
Silchar, Plant locations
state utilities to
Discussions were held to
obtain industry
understand various roles
information
and responsibilities and
staff allocations at
various functions
Options were generated

and deliberated and
recommendations made
The approach has 3 main stages:

Review and Analysis of the Existing Structure: This entailed a review of the
existing structure and identifying potential areas for institutional strengthening
and greater focus. The following tasks were conducted:
Stakeholder Consultation & Field Visits: Top level interactions with the
Chairman & Managing Director and CGMs were held to understand the
expectations and the direction of the study. Subsequently, discussions with
the next level of the hierarchy were conducted to understand and review the
existing hierarchy, the functional responsibilities, the reporting mechanisms,
the main functional areas at the corporate and field level and the
geographical spread of operations, expansion plans etc.
Field visits were conducted to Jorhat and Silchar in upper and lower Assam
respectively. Discussions were held to understand various roles and
responsibilities and staff allocations at various functions.
Identify Design Criteria and Benchmarking: This entailed an analysis of the
existing structure based on management coverage, span of control, key
operating priorities, expansion plans, high level functional clarity etc.
The top level structures of some of the state discoms were also studied to
identify improvement opportunities. The distribution companies used for this
include Maharashtra State Electricity Distribution Company Limited (MSEDCL),
Uttar Haryana Bijjli Vitran Nigam (UHBVN) and Andhra Pradesh Central Power
Distribution Company Limited (APCPDCL).
Develop Organization Structure, Validate and Finalize: Based on the
previous stages of the approach, the organization structure for APDCL was re-
designed. Successively, based on iterations and need based discussions with
the stakeholders, the proposed organization structure was revised and has now
been captured in this report. The salient points of stakeholder discussions /
feedback are captured appropriately in the report.
Structure of the Report

This report on the organizational structure of APDCL is divided into 3 chapters.
Chapter 1 - Introduction: The first chapter is an introduction to the report and
covers the background of ASEB and APDCL, objectives of the study and the
approach followed by PwC to conduct the study.
Chapter 2 AS IS Analysis and TO BE Recommendations: The second
chapter is an as-Is analysis of the organizational structure and covers
human resource profiling, details of the present organization design and
organization structure. The AS-IS analysis is followed by TO-BE
recommendations to enable a comparison and clearly highlight the changes
being recommended. The TO BE structure is supported with a write-up on
the Basis for recommendations, Comparison of as-is & to-be manning-
positions and Future scenario & migration for the company.
Chapter 3 Conclusion: The third chapter of this report summarizes the
broad recommendations made for APDCL.
o Annexure 1 Benchmarking: The Annexure 1 covers the
benchmarking of the organization structure of APDCL with other
state utilities and highlights the key learnings of the benchmarking
exercise.
o Annexure 2 Stakeholder Discussions, Key Points Discussed: This
summarizes some key issues raised during various stakeholder
meetings at HQ and field offices and the discussions thereon.
o Annexure 3 Tentative List of Full Powers: This summarizes some
of the nature of power which can be delegated as full power to
committee of functional directors.
AS IS Analysis
Present Organizationand TO AS-IS Analysis and TO-BE Recommendations
BE Recommendations
The Reporting Hierarchies in APDCL
There are various levels of hierarchies present in the organization. The following
diagram is a representation of the various levels of hierarchies (above the level
of AM) being followed in the company. The hierarchies are representations of
the legacies followed in the organization and can be used for quick referral.
CGM
GM
DGM
SM
M/DM
AM
Sl. No. Earlier Designation New Designation

1 Assistant Engineer (AE) Assistant Manager (AM)
2 Assistant Executive Engineer (AEE) Manager/Deputy Manager (M / DM)
3 Executive Engineer (EE) Senior Manager (SM)
4 Superintending Engineer (SE) Deputy General Manager (DGM)
5 Additional Chief Engineer (ACE) General Manager (GM)
6 Chief Engineer (CE) Chief General Manager (CGM)
Human Resource Profiling

The HR profiling exercise has been carried out for the three companies (APDCL,
APGCL and AEGCL) together.
It has been carried out on the basis of the manpower data collected from the
office of the Director Personal and Deputy General Manager- Human Resource
(DGM-HR) of respective companies.
Based on the information available, employees have been classified into two
categories - Executive and Non Executive.
All employees belonging to grade 10 (G10) and above have been classified as
executives and all employees belonging to grade 9 (G9) and below have been
classified as non executives.
Details of the availability of the data in the data base collected from each
company are given below:
Number of Employees
E / NE
Company Executives Non-Executives
Total Ratio (%)
At HQ At Field At HQ At Field
AEGCL 33 195 77 1550 1855 12 / 88
APDCL 110 494 424 10204 11232 5 / 95
APGCL 44 174 107 1113 1438 15 / 85
Total 187 863 608 12867 14525 7 / 93
In this report, the HR profiling analysis has been carried out for APDCL only.
The main observations that have been made on the basis of the profiling
exercise are as follows:
In APDCL, about 5% of the total employees are in the headquarters and
about 95% of the total employees are in the field offices.
HQ executives form 21% of the total employees working in HQ and field
executives form only 5% of the total employees working in the field. For
APDCL as a whole, Executives form 5% of the total working employees.
Age Profiling
The average employee age of the company is 52 years.
The average age of executives and non-executives do not vary much as
compared to the company average.
Approximately 70% of the total employees are above the age of 50 years
and approximately 75% executives are above the age of 50 years. This is
the highest among the three companies.
The non-executive to executive ratio for APDCL is 18.
Retirement Profiling
Approximately 38% of the entire workforce of APDCL will retire by calendar
year16 (CY16)
Approximately 45% of the executives of APDCL will retire by CY16
Approximately 8% of the executives belonging to the level of SM & above
will retire every year till CY16
The AS-IS and TO-BE Structure

The present structure of APDCL can be classified under three broad levels as
shown in the diagram below. The AS-IS analysis and TO-BE recommendations
for re-designing the organization structure of APDCL have been presented in the
same format. The classifications are as follows:
Board
Level
1
Corporate
Level 2
Field
Level 3
Board Level: Board of Directors of APDCL

The Board of Directors (BoD) of APDCL has seven members and is headed by
the Chairman & Managing Director (CMD). The CMD is the lone functional
director of the Board and has been delegated powers to undertake management
decisions and control the affairs of the company. The rest of the board members
are non-functional directors.
The current board comprises one Chairman & Managing Director, two State
Government Representative Directors (one each from Department of Power and
Department of Finance) and four Independent Director (from academic
institutes, local repute etc)
Main Observations
The APDCL Board of directors has representation from the state
government.
The APDCL Board has 4 independent Directors. Their process of
appointment / nomination is specified in the Article of Association.
The APDCL Board has one Functional Director - the CMD.
Relevant Guidelines on Corporate Governance
The Department of Public Enterprises has laid out certain guidelines for the
constitution of Board for Central Sector PSUs (Source: Guidelines on corporate
governance for CPSE 2007). The key points of the guidelines are:
The Board of Directors of the company shall have an optimum combination

of functional, nominee and independent directors.
The number of functional directors (including CMD/MD) should not exceed
50% of the actual strength of the Board.
The number of nominee directors shall be restricted to a maximum of two.
In case of CPSEs listed in Stock Exchanges, the number of independent
directors shall be at least 50% of Board Members. In case of CPSEs not
listed in the Stock Exchanges, at least one-third of the Board Members
should be independent directors.
Experience from Other Utilities
The following table shows the composition of the Board of Directors of some
state utilities:
AP AP
Indicator Directors UHBVNL OHPC APNPDCL APCPDCL
Genco Transco
Functional 4 3 7 6 6 8
No of Govt Nominee 4 3 1 1 - -
Directors
Other Non-
- 4 2 2 2 -
Executive
Recent Board Size 8 10 10 9 8 8
The above table shows that the number of government nominated directors is
restricted in most utilities (except UHBVNL) to ensure more independence in
operations of the company. The functional directors in most utilities include
functional directors from Operations, Finance, Human resource, Technical /
Projects to assist the CMD/MD.
In UHBVNL (Haryana Discom), the company has formed a committee consisting
of functional directors of the company, known as Committee of Whole Time
Directors (WTD) of the Company. This is popularly called as WTD Committee.
The details and powers of the committee are incorporated in the Article of
Association of the company. The WTD committee has been assigned Full
Powers for making various decisions in order to enable smooth functioning of
the company. The powers of the WTD committee are clearly defined and
separated out from the Board of the company.
Structural Implications
Sl. Issue Experience from other Recommendations /

No Utilities Changes considered
1 Need for greater functional Presence of 3-6 Functional Directors at
representation at Board Functional Directors Board Level for
level depending upon the Projects, Human
size and focus of the Resource, F&A and
organization Operations proposed to
be introduced
2 Internal Audit Function not Internal Audit function is Internal Audit function is
strengthened a separate function proposed, which will
directly reporting to the report to Board Audit
head of the company Committee
Recommendations
The introduction of 4 functional directors positions at company Board level
namely Director Projects & MM, Director Human Resource, Director F&A
and Director Operations is proposed. These positions are in addition to
existing position of CMD of APDCL.
These positions at the Board level need to be selected based on merit and
functional requirements and must not be treated as posts by promotion.
Future Scenario and Migration

During various stakeholder discussions, it was highlighted that incorporation
of the positions of functional director at the Board level requires appropriate
changes in the Article of Association of the company and thus, it may not be
feasible to fill these positions immediately.
Therefore, an interim arrangement is recommended under which the
proposed positions of Directors may be replaced with Executive Directors
(ED) for the company. The appointment of EDs should be filled from the
respective functional stream only. For eg: it is recommended that the
position of ED F&A or ED Technical is filled from the respective finance or
electrical cadre itself.
The position of EDs should be retained till the time amendments in Article of
Association are made that enable the appointment Functional Directors at
the Board Level.
A committee comprising EDs and CMD should be formed and appropriate
powers should be delegated to the committee to ensure smooth functioning
of the company. As discussed above, UHBVNL (Haryana Discom) has
similar arrangement known as WTD Committee. Based on PwC knowledge
base, we have summarized a tentative list of various full powers which are
normally available with such committees. The same is attached under
Annexure 3.
An Overview of the Entire Structure of APDCL

The Existing Top Level Structure
The diagram below captures the first level of management that is directly
reporting to the CMD. The CMD is the top most functional position in APDCL
and is the position to whom all the functional heads in the organization report.
APDCL has a functional structure primarily divided into 3 operational zones
Upper Assam Zone (UAZ), Central Assam Zone (CAZ) and Lower Assam Zone
(LAZ). Each zone acts as a business unit and is headed by a CGM. The 3
operation zones are supported by functional groups like finance and accounts,
project management, materials etc.
The top level reporting structure under the CMD is as follows:
Overall Top Level

Chairman & Existing Org Chart
Managing APDCL
Director
Chief Medical CGM DGM CGM CGM

Officer UAZ HR UAZ F&A Rural Electrification
Director CGM
CGM DGM CGM
Vigilance & Commercial &
LAZ HR LAZ P&P
Security Tariff
Director CGM DGM Company

PMU CAZ HA CAZ Secretary
Functions working in Functions working in APDCL for APDCL requirements Functions working
APDCL for other utility outside APDCL but for
requirements also APDCL requirements
also
Note: The position under each broad box is reporting directly to CMD.
The broad description of the functions reporting directly to CMD is summarized

in the table below:
Sl. Function / Position Broad Roles & Responsibilities

No
1 CGM (Operations - CGM zones is responsible for all the circles under that
UAZ, CAZ, LAZ) zone
Acting as an interface between field offices and the
headquarter functions
CGM (LAZ) is also responsible for the material
management and R-APDRP implementation.
2 CGM (Commercial Commercial (revenue monitoring) wing is responsible
and tariff) for the monitoring commercial performance of all the
subdivisions and generating MIS reports.
Tariff wing looks after the power procurement issues
and also deals with all regulatory issues.
3 Director (PMU) Director Project Monitoring Unit (PMU) looks after the
Asian Development Bank (ADB) funded projects.
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.
4 CGM (Projects & CGM Projects and Planning (P&P) is responsible for
Planning) allocation of funds in project and tracking the progress
of projects.
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).
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
5 CGM (Rural Rural Electrification is responsible for planning and
Electrification) implementation of Rajiv Gandhi Grameen Vidyut karan
Yojna.
6 CGM (F&A) Preparation of pay and keeping pension & provident
fund records
Corporate finance
Preparation of final accounts, budgeting and audit
activities
7 DGM (HR LAZ, Posting and transfer of employees
CAZ, UAZ) Promotions
Recruitment
The position is acting as Director Personnel also for
ASEB for unified cadre activities
8 Chief Medical Officer Approval of medical bills
Liaison with local hospitals / medical practitioners
9 Company Secretary Act as company secretary on behalf of BoD

Maintain details of Board meetings and other statutory
compliance
10 Director (Vigilance & Security arrangements of entire establishments in the
Security) company
Sl. Issue Experience from other Recommendations /

No Utilities Changes considered
1 14 positions directly report The span of control for Functions aligned and
to the CMD and few of head of organization is clustered to reduce the
them are not among core between 5-10 span of control and
business requirements ensure CMD is reported
by functional head
which are of core
business requirements
2 HR Function is not unified HR is a clearly defined HR is unified at head
at the head office, limiting functions at head office office with
its strategic company wide with reporting to head of transformational
transformational role organizations directly responsibilities and field
level presence is
created for both
transformational support
and transactional
activities
3 Need for greater focus on At head office, functions The Commercial
functions such as are clustered within function is proposed to
commercial, regulatory, their functional line and be strengthened with
Power procurement, load its reporting hierarchy is clear responsibility for
management clearly defined in the Regulatory, Power
organization structure procurement, Load
management, Energy
audit activities
4 Project planning & Normally, the projects Functions aligned and
implementation is not activities are clustered to reduce the
unified and is being functionally integrated widespread handling of
carried out by many under Projects & project related activities.
functional heads. Eg: ADB planning wing. The The entire Project
projects, RE projects, GoI head of projects & planning, Designing,
& GoA projects are planning represent in DPR, Tendering,
managed under separate the company board Procurement, Execution
heads monitoring is unified
under Director
Projects & Material
management
To-Be Organization Structure

The top level proposed organization structure for APDCL is as follows:
Board Audit
Committee
Chairman &
Managing
Director
Company SM
Secretary & PRO Internal Audit
Director
DGM
Vigilance &
Legal
Security
Director Director Director Director

Projects & MM HR F&A Operations
CGM
GM CGM CGM CGM CGM
Rural
Projects HR F&A LZ Guwahati Commercial
Electrification
CGM SM GM
GM CGM DGM
Material Admin, Welfare, Corporate
Civil UZ, Jorhat IT & MIS
Management IR Accunts, Taxation
DGM Chief Medical CGM

ARPDRP Officer CZ, Dibhu
The following is a summary of the key changes recommended:

The four positions of functional Directors Director Operations, Director
Human resource, Director F&A and Director Projects & Material
Management have been introduced to have greater representation at the
Board level
The entire HR function has been unified under Director HR to create single
point accountability for the function.
Internal audit has been proposed as a separate function to ensure
independence is maintained while carrying out audit activities. The function
will take care of internal and statutory audit and preferably be supported by
external auditing firms. The internal audit function will report to the board
audit committee.
The centralized legal cell has been proposed for handling all commercial
and employee legal cases for the company. This position will be filled by the
DGM HR of LAZ. The legal cell will handle cases related to land
acquisitions, consumer complaints, employee complaints, recovery of
unpaid amounts etc.
The activities related to company secretary, security, PRO will be handled
by company secretary.
The proposed functions under each Director level position are discussed under
subsequent sections of this chapter. However, we are highlighting some of the
key changes proposed under each Director level position.
Changes proposed under Director Projects and Material Management:

The new position of CGM Material Management will take care of activities
like Material planning, Procurement, Tendering, Stores etc.
The new position of GM Projects will take care of project coordination,
project planning for non-ADB schemes, preparation of design
specifications/DPRs, meter relay testing (MRT) and project management
unit (PMU). The positions under GM Projects are aligned to create single
point accountability for the design wing of entire APDCL for projects not
covered under RAPDRP/ADB/RGGY.
The civil design for new projects will be carried out under GM Civil to support
the project requirements of RE, Projects etc. The mechanism to integrate
corporate office civil function with field zonal offices, civil maintenance of
colonies & buildings of APDCL is ensured by creating a position of SM
Coordination under GM Civil.
Changes proposed under Director Operations:

It is proposed that the zone office under each CGM be relocated to the area
of the zonal operations. The office should preferably be located centrally to
manage the entire zone functions effectively.
The functions under CGM commercial have been unified in such a manner
so as to support the commercial activities of company and create clear
accountability for regulatory & tariff, power procurement & load management
functions. The additional position of GM energy audit and customer
services has been proposed to monitor the revenue & loss of three zones,
commercial & customer service; energy accounting activities and compile
the same.
The new setup under DGM IT implementation & MIS is proposed to take
care of IT initiatives, IT project management and supervisory role in the
company. RAPDRP program for APDCL will lead to establishment of Data
centres, addition of requisite IT infrastructure & hardware, ERP based
solutions for commercial and support functions in APDCL. Therefore, the IT
cadre within the company should be built. Accordingly, we have proposed

one position of DGM-IT and three positions of SM-IT apart from existing
positions of AM-IT at field level
Changes proposed under Director F&A :

The changes under F&A are focused towards getting functional clarity &
greater accountability in the department.
The various positions of GMs / DGMs have been named with respect to the
functions they will perform. These are - GM corporate account, taxation;
DGM budget, treasury; DGM corporate finance, power purchase, project
finance; DGM establishment.
Changes proposed under Director HR:

The changes that have been proposed aim at creating a more
transformational role of HR. The functions introduced in the HR department
are essential from the point of view of employee development and building a
healthy HR function within the organization.
The existing positions of DGM HR at CAZ and UAZ are functionally re-
arranged under Director HR. The various functional positions proposed are
DGM Establishment, Manpower planning & Recruitment and DGM
Training & Performance management system.
The position of Chief medical formerly reporting to the CMD will now report
to the Director HR.
Changes proposed under zone office and circle office:

Zone Office:
A new position of SM Establishment is proposed at zone office
reporting directly to CGM zone for the entire establishment and,
training & recruitment activities. The existence of this position will
ensure lesser establishment load on corporate office. Thus, this
position under CGM zone needs to be provided appropriate
delegation of power to perform effectively.
A new position of SM F&A is proposed at zone office reporting
directly to CGM zone for entire zonal F&A matters. This position will
facilitate building zone as a profit centre for the company.
The position of DGM HQ, Technical will perform activities related to
Works, new schemes, civil assistance. The position of SM Technical
under DGM HQ will also coordinate the execution of all project
activities at field. The DGM Technical will further be supported by SM
IT for implementing IT initiatives across the zone office.
A new setup of GM enforcement is proposed under CGM zone to

conduct raids to detect theft, revenue realization, preparing case for
legal proceedings etc.
Circle Office
A new position of SM project / RE execution is proposed at the circle
office. This position will coordinate the entire project execution under
the jurisdiction of circle. The position will be a single point contact for
head office in terms of progress monitoring of projects. The projects
will include RE, APDRP/RAPDRP, IT implementation, State/self
funded, ADB funded projects etc.
A new position of SM Energy audit / SPPS has been proposed to
introduce effective energy audit initiatives across circle and monitor the
performance of SPPS / other outsourcing initiatives in the circle.
A new position of AM Establishment has been proposed at the circle
office. This position will ensure adequate support to circle head for
performing its establishment activities and will look after training &
recruitment support activities. The appropriate delegation of power
should be assigned to this position.
Comparison of As Is and To Be Man-in-Position
Corporate
Electrical Civil F&A HR IT Medical Security Secretariat Total
Designation Legal
E P E P E P E P E P E P E P E P E P E P
CGM 5 6 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 6 8
GM 9 9 0 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 10 12
DGM 28 31 2 0 3 3 3 2 0 1 0 1 0 0 0 0 0 0 36 38
SM 161 159 19 17 8 11 0 8 0 0 0 6 0 0 0 0 1 1 189 202
AM / DM / M* 365 365 0 0 25 25 2 15 0 2 15 15 0 0 0 0 0 0 407 422
CMO 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1
Total 568 570 21 18 37 41 5 26 0 3 15 22 1 1 1 1 1 1 649 683
1) The numbers mentioned in above table are based on our discussions at corporate
office and on assumption that all the field level circle heads and division heads
positions are filled.
2) *: The count of AM / DM / M is based on the employee database.
3) E: Existing; P: Proposed
Building Cadres and Promotional Avenues:

This section has been divided into two parts Highlighting the concerns raised
by the stakeholders and addressing the concerns raised by the stakeholder.
Concerns raised by the Stakeholders:
The various concerns raised by the stakeholders have been grouped under
two headings Building of cadres in the company and Promotional avenues
for the executive workforce of the erstwhile ASEB, now belonging to APDCL,
AEGCL and APGCL respectively. The details under each part is as follows:
o Building of cadres in the company: The main concerns in this regard
are as follows:
What are the new cadres that need to be introduced and how
can they be built in the company?
How should the existing cadres be strengthened?
How can attractive promotional avenues be built for
employees in each cadre?
o Promotional avenues for the employees of erstwhile ASEB, now
belonging to APDCL, APGCL and AEGCL respectively: The main
concerns raised in this regard are as follows:
Inter Company Promotional Avenues: How can it be ensured
that employees belonging to the three companies post
restructuring do not feel at a disadvantaged position in terms
of promotional avenues as compared to the situation prior to
restructuring? In the pre restructuring scenario, employees
are eligible to move across the three companies to avail the
promotional opportunities. However, post restructuring, this
movement will be restricted. (for eg. In the current situation, it
is possible that a GM in AEGCL becomes CGM in
APDCL/APGCL, if any vacancy arises in APDCL/APGCL
respectively. But post re-structuring it will be possible for this
GM of AEGCL to become the CGM only when a vacancy
arises in AEGCL). In case the vacancy arises in the other
two companies before it arises in AEGCL, an employee will
feel he/she was better off in the pre restructuring scenario.
To conclude, how can it be ensured that employees dont
feel that the other company is offering better promotional
avenues?
Promotional Avenues within a company: How can it be
ensured that all cadres within the same company have equal
promotional opportunities? For eg: An employee serving as a
DGM in the F&A cadre in AEGCL must not feel that he/she
lacks promotional opportunities as compared to a DGM in
the electrical cadre in AEGCL.
How to ensure that the employees occupying the leadership
positions in each company (eg: at the CGM level), occupies
the position for a longer duration to have sufficient time to

build a vision and also be involved in the execution? At
present, the tenure of employees at these positions is limited
to 1-2 years.
Addressing the concerns raised by the Stakeholder:
Building Cadres for APDCL:
o The re-designing of organization structure for the three companies
has been conducted and the cadres proposed for three companies
are exclusively for the respective companies. This exercise for
APDCL has built new cadres for HR and IT stream and strengthened
the existing cadres of Electrical, F&A and Civil.
o The aspects of building/strengthening each cadre have been
discussed below:
Electrical Cadre: This is the largest cadre in APDCL. The
electrical function is the core function of the company, no
activity is proposed to be outsourced. All the activities will be
built within the organization. The top most position of this
cadre in the redesigned structure is the level of CGM. In the
redesigned organization structure, the presence of this
function across the HQ and across all levels of the field has
been maintained.
Overall, there has been an increase in the promotional
avenues among executives. Though there is a marginal
reduction at the SM level, the additional posts at the CGM
and DGM level provide greater opportunities of promotion for
the executives.
Civil Cadre: In the redesigned structure, this cadre has been
given the positions of SM and GM under various activities
both at HQ and field level (at circle level). The positions that
have not been given under this cadre are the level of DGM
and CGM. These have been recommended as Post
Personnel (PP) posts. The PP concept is explained later
within this section.
Overall, there has been a decrease in the number of
executives for this cadre. However, in the sum total for all the
three companies put together, the numbers of executives
remain the same and there is an increase in the positions of
GM and SM.
F&A Cadre: In the redesigned structure, this cadre has been
strengthened and has been given all the positions from SM
to CGM under various activities. The cadre is introduced at
zone level also in the proposed organization structure.
Overall, there has been an increase in the promotional
avenues among executives. By introducing one post of GM
F&A and increasing the number of positions of SM F&A, the

promotional avenues have been increased.
HR Cadre: The presence of the HR cadre in APDCL has
been very limited and is mainly handled by electrical cadre at
the field level. Thus, the redesigned structure has built this
cadre in the company. Twenty six positions of HR at various
levels have been proposed. The positions of SMs that have
been proposed are presently not occupied. Therefore, it is
recommended that lateral recruitment for filling these
positions be conducted immediately. Alternatively, it is also
possible to give an option to the existing DPMs (placed at
circle office but from electrical cadre) to switch over to the
HR cadre and carry out the functions respectively. Thirteen
new positions have been recommended at the entry level. In
order to ensure that the cadre is built within the company, the
recruitment for thirteen positions must be conducted keeping
in mind that people who will fill this post mush have an
appropriate HR background. Overall, the recruitments at
senior positions or at entry level positions should be done
among candidates with a background in HR to help the
company build this cadre effectively.
The HR cadre has been given all positions from CGM to SM,
except that of the GM. This position of GM HR will continue
as a PP post in APDCL.
IT Cadre: The function of IT for APDCL can broadly be
classified under two categories Basic IT administration and
IT initiatives under RAPDRP.
Under RAPDRP program, a huge sum/ grant has been
provided by Government of India for all state utilities with an
objective to set base line data for various project areas
covering consumer indexing, GIS mapping, Metering of
distribution, Transformers and feeders, Automatic data
logging, SCADA/DMS system. RAPDRP will also include
adoption of IT applications for meter reading, billing &
collection, energy accounting & auditing, MIS, establishment
of IT enabled consumer service centres, data centres etc.
Overall, a successful intervention of RAPDRP program will
lead to establishment of Data centres, addition of requisite IT
infrastructure & hardware, ERP based solutions for
commercial and support functions in APDCL.
Thus, it is imperative for APDCL to build a strong IT function
in future. This will require the presence of specialized
manpower that will have the ability to manage projects, act
as an IT coordinator and perform supervisory role to manage
internal challenges. The immediate need is to develop the
skill of project management under the IT function which will
ensure effective implementation & administration of the

various IT initiatives.
The presence of IT skill in APDCL is limited and currently
managed by employees belonging to electrical cadre.
Therefore, the IT cadre within the company should be built
by recruiting personnel having appropriate skill sets.
Accordingly, we have proposed one position of DGM-IT and
three positions of SM-IT apart from existing positions of AM-
IT at field level. These positions must be filled as lateral
recruits who have the skill and experience to render the
duties. These professionals must be hired on a contractual
basis and their recruitment policies and compensation must
be benchmarked with the job-market in private sector. This
will help the company to build this cadre in a short span of
time ensuring that the skills required are not compromised
upon.
This arrangement need to be reviewed in next 3-4 years. Till
then, the AMs who have been recruited for IT must be made
to work under the guidance of the newly recruited employees
and their skill must be built. This will lead to a stronger IT
cadre once the phase of RAPDRP implementation is over.
Promotional avenues for the employees of erstwhile ASEB, now belonging
to APDCL, APGCL and AEGCL respectively
o In dealing with the various issues arising with respect to promotional
avenues, a concept of Post Personnel (PP) has been used. Before
the concerns with respect to promotional avenues are addressed, a
brief description of the concept of PP is presented below:
Post Personal (PP) enables an employee to attain the next
level in the hierarchy and earn the benefits assigned to
higher position, despite that position actually not existing
within the structure. Once this employee retires, this post will
cease to exist and will return to the original proposed
position. For Eg: In the proposed organization structure of
one of the companies, the highest proposed position is GM
in a cadre. This means that the employee cannot get
promoted beyond the level of GM as there is no post
available above this. By introducing the concept of PP, the
employee will be promoted to the post of CGM based on
some set criteria (this needs to be defined in the PP policy
directive). He/she retains the position achieved through PP
till he/she retires. Post his/her retirement, the status of
position in the structure is restored to GM level and the
promotion among successors will take place accordingly.
o Dealing with inter company promotional avenues:
This refers to the situation where an employee on the
common seniority list who could have been promoted to the
next level in the pre-restructuring scenario now loses out on

the opportunity in the post-restructuring scenario. The
vacancy that arises is in the next company is filled by
someone else from that company and this person despite
being eligible for promotion gets left out as he is not working
in that company.
In order to deal with this issue, the following options are
recommended:
Give promotion to each employee who is likely to be
deprived of the next promotion
Allow PP based higher position to eligible employees
in other companies
Grant higher pay scale to deprived employees
equivalent to the promotion post.
In either case, these options can only be exercised till a
particular point of time. Beyond a certain point, when the
company has taken care of the majority of such cases,
individual cases can be handled and each aggrieved
employee can be dealt with at an individual level.
The retirement profiling of the three companies reveals that
by Calendar Year (CY) 2018, 62% of the total executives of
APDCL would have retired. The same figures for AEGCL
and APGCL are 60% and 60% respectively. Thus, by CY
2018, a majority of the executive workforce (more than 60%)
that is likely to be affected by the restructuring exercise
would have retired.
The PP Policy must then be made valid only till 2018, so that
these employees need not suffer. The situation post CY2018
needs to be reviewed and a separate solution can be created
when the business requirements are different and a different
set of solutions can be created.
o Dealing with promotional avenues in different cadres of the same
company post restructuring:
This refers to the situation where employees belonging to
different cadres of the same company feel that they are
disadvantaged as they belong to a cadre that does not have
enough promotional avenues.
In order to deal with this issue, the following option is
recommended:
Allow PP based promotions to deserving and eligible
employees in each cadre. This will be an
accommodation made for the employee to motivate
him/her to keep performing and ensure that the
promotional avenues are not blocked.
This policy of PP for cadre based promotions is not

time bound. This is because the structure itself does
not provide for the promotional avenue. So whenever
the employee hits a ceiling, a PP post must be
offered till the employee retires or becomes eligible
for the next level of promotion.
Following is the summary of cadre wise PP position
proposed to be introduced in APDCL
Civil IT HR
CGM PP PP
GM PP PP
DGM PP
SM
o Increasing the tenure of Top Management, especially at the level of

CGM
It is recommended that the company creates an appropriate
policy to ensure that the employees occupying the position of
CGM have a minimum balance of service period (say three
years).
While preparing such policy for the company, the following
care must be taken:
The performers do not lose out on promotional
avenues as their balance of service is less then 3
years. For such employees, an interim arrangement
such as extension of service may be adopted.
The ineligible (based on balance of service period)
but senior employees do not lose out on their chance
to occupy CGM position. They may be granted
promotion either on PP basis or may be awarded
higher pay scale.
This policy will ensure the following:
The average tenure spent by the CGM will increase
and greater time will be available for
conceptualization and implementation of an overall
strategy
The deserving employees do not lose out on
promotional opportunities
Corporate Level: Structural and Functional Analysis of the Corporate

Office
CGM F&A
Existing Structure
Finance and accounts function is headed by a CGM. Finance section at present
is divided into ten sections. Each section is either headed by a DGM or SM and
each officer is responsible for multiple sections. The table below provides
details of the various activities in Finance and Accounts wing:
Sl. Name Function Responsibility Assisted by

No
1 GPF To maintain provident fund DGM-I S.M-I
records
2 Budget and Head Preparation of budget for DGM-I S.M-II
Quarter Cash APDCL and monitoring of A.M-I
expenditure as per the
prepared budget
3 Compilation Preparation of Final Accounts DGM-II S.M-III
S.M-IV
A.M-III
4 Establishment Establishment activities of DGM-III A.M-V
Officers in Finance and
accounts cadre
5 Audit Revenue Audit DGM-III S.M-V
S.M-VI
S.M-VII
A.M-VI
6 Pension To maintain pension records S.M-I
7 GAD Generation of Payslip of the S.M-I
executives, pay fixation and
retirement records
8 Billing and subsidiary Approval and payment of Bills S.M-III A.M-II
cash for employees and contractors.
9 Corporate Finance Manage all major fund flow S.M-IV A.M-III
management including , power A.M-IV
procurement and repayment of
loans
10 Reconciliation Reconciliation of Accounts S.M-V
Some of the officers of the rank of SM have dual reporting. They are reporting to
the DGM for certain functions and are directly reporting to CGM for others. The
detailed organization structure of the Finance and Accounts function is given
below
CGM (F&A)
Pension Reconciliation
DGM-I Billing DGM-II DGM-III

(Budget, HQ and (Compilation) (Establishment
cash and PF) cash & Audit)
S.M-III S.M-V
S.M-I (Pension (Compilation (Establishment
and GPF) and subsidary
cash) and
Assistant reconcilliation)
Manager-II
S.M-IV S.M-VI
S.M-II (Budget (Compilation Corporate
and HQ Cash) and Corporate Finance (Audit)
Finance)
Assistant Assistant S.M-VII

Manager-I Manager-III (Audit)
Assistant Assistant Assistant

Indicates dual reporting Manager-IV Manager-VI Manager-V
Indicates position for which

dual reporting
Sl. Issue Impact Structural Implication

No
1 Some of the officers of the rank of This increases the work Reporting structure for
SM have dual reporting. They are load of the senior F&A needs to be
reporting to the DGM for certain managers. revised.
functions and for some functions
they are directly reporting to CGM
2 Audit function does not have Yearly revenue audit of Audit Function needs to
sufficient and dedicated staff. At all sub division, division be strengthened and
present it is at best a temporary and circles is not being staffed adequately
arrangement. done. No expenditure
audit is being done
Basis of Recommendations
The following table analyses and highlights the existing functions that are being
performed, functional heads who are performing them, and how they should be
aligned in the new structure. The To-Be structure has been designed to address
the current and future priorities of APDCL keeping in mind the structural
implications discussed earlier.
Existing
Broad Functions Proposed Functional Groups
Functional Heads
Budget & HQ Cash DGM - I Budget, Treasury
Billing & Subsidiary
DGM - III Budget, Treasury
cash
Compilation DGM - II Corporate Account, Taxation
Reconciliation DGM - III Corporate Account, Taxation
Taxation CGM Corporate Account, Taxation
Corporate Account CGM Corporate Account, Taxation
Corp Fin DGM - II Corporate Finance, Power Purchase, Project Finance
Power Purchase CGM Corporate Finance, Power Purchase, Project Finance
Project Finance CGM Corporate Finance, Power Purchase, Project Finance
GPF DGM - I Establishment
Establishment DGM - III Establishment
Pension DGM - I Establishment
GAD DGM - I Establishment
Audit DGM - III Assigned under Board Audit Committee

We propose the following organization structure for the F&A department:
Director
F&A
GM
CGM
Corporate
F&A
Account, Taxation
DGM SM
DGM DGM
Corp Fin, Power Compilation,
Budget, Treasury Establishment
Purchase, Proj Fin Recons, Stat Audit
SM SM
SM SM
Bill payment, Establishment,
Corporate Finance Taxation
Suppliers GAD
SM
Pension, GPF,
NPS
F&A
Designation Remarks
E P
CGM 1 1
GM 1
DGM 3 3
One for CGM RE, One for each
SM 8 11
Zone and One for Internal audit
AM / DM / M* 25 25 F&A @one per circle
CMO
Total 37 42
*: The existing count of AM / DM / M is based on the employee database and

the same is taken for proposed numbers.

The concerns related to the post of Director F&A have been discussed
earlier. In case the post of Director F&A or Executive Director F&A is not
filled, then the CGM F&A will head the function and all functions reporting
directly to Director F&A in the proposed structure will report to CGM F&A.
The CGM F&A will report to CMD APDCL in this case.
CGM Commercial and Tariff

Existing Structure:
The CGM (commercial and Tariff) performs the two main functions:
Commercial (Revenue Monitoring)
Tariff
The detailed organization structure of CGM (Commercial and Tariff) is given
below.
O verall Top Level

Existing O rg Chart
C om m ercial & Tariff
CGM
C om m ercial &
Tariff
GM GM
Tariff C om m ercial
SM
DGM
C entral Sector DGM DGM
Technical
CAZ & LLAZ UAZ
Inspection
SM
State Sector SM
SM (#2) SM
Technical
U AZ & LAZ UAZ
Inspection
SM
Pow er Trading
SM
Preparation of
Tariff
GM (Tariff)
GM (Tariff) is responsible for all power purchase, sale of power and other
regulatory matters. GM Tariff is supported by 4 SMs.
The work in the tariff section is divided as shown below:
Sl. Function Responsibility

No
1 CERC and Central sector issues S.M
2 SERC and state sector issues S.M
3 Power Procurement and sale S.M
4 Preparation of tariff petition S.M
GM (Commercial)
The Commercial function involves monitoring the commercial performance of all
the subdivisions and generating MIS reports. This department has to monitor at
the subdivision level also. At present, the commercial function is headed by the
GM commercial. GM Commercial is supported by 3 officers of the rank of DGM.
The work of monitoring the commercial performance is divided based on the
zones. Central and Lower Assam zone are looked after by one DGM and Upper
Assam Zone is looked after by another DGM.
Commercial function also has DGM Technical Inspection. DGM technical
inspection works as an enforcement agency and is responsible for carrying out
inspection of consumer premises for detection of irregularities.
Commercial complaints of consumers that are not resolved at the field level are
also handled by the commercial function. One manager is responsible for
handling all consumer complaints and one manager is responsible for legal
matters associated with commercial.
Existing
Functional Heads
Commercial policies GM - II Commercial, Energy audit, Customer services
Revenue / loss monitoring GM - II Commercial, Energy audit, Customer services
Consumer complaints, Customer

GM - II Commercial, Energy audit, Customer services
services
Energy Audit CGM Commercial, Energy audit, Customer services
Power purchase, Trading GM I Power Purchase, Load Management
Demand forecast & scheduling, Load
CGM Power Purchase, Load Management
management
Tariff petition, Regulatory matters GM I Regulatory, Tariff
Commercial Legal GM II Function assigned to Corporate Legal
Existing
Functional Heads
Technical inspection, Enforcement GM II Function assigned to Zone O&M office

We propose the following organization structure for the Commercial department:
CGM
Commercial
GM GM
GM
Power Procur & Commercial, Energy
Regulatory, Tariff Audit, Cust Services
Load Mgt
DGM DGM
SM SM
Power Load
Regulatory Energy Audit
Procurement Management
SM (#2) SM
SM SM
Demand forecast Customer
Tariff, Complaince (#2)
& scheduling Services
SM
Commercial,
Revenue & Loss
Corporate
Electrical Total
Legal
Designation Remarks
E P E P E P
CGM 1 1 1 1
Enforcement position
GM 2 3 2 3
under zone office
DGM 3 3 1 3 4
Enforcement position
SM 8 9 8 9
under zone office
AM / DM / M 2 0 2
Corporate
Electrical Total
Legal
Designation Remarks
E P E P E P
CMO / MO 0 0
Total 14 16 0 3 14 19

The position of GM Commercial, Energy Audit, Customer Services has
been introduced in order to ensure that the promotional avenues for the
cadre do not suffer. However, it is recommended that in next 4-5 years when
this function is fully established and IT enabled tools are in place for CRM
and Energy audit requirements, this post could be scaled down to level of
DGM.
Two separate positions for SM Energy Audit and SM Customer services
have been provided to handle the immediate organizational requirements.
In the next 4-5 years, post implementation of IT tools, the two positions of
SM could be merged into one position of SM Energy audit & CRM.
DGM HR
Existing Structure
Human resource function in APDCL is controlled by 3 DGMs. Each DGM looks
after one zone of the company. All postings and transfers within the zone are
managed by DGM of the zone. Inter zone transfers and promotions of the
executives are done by ASEB.
The detailed organization structure for the Human Resource function is given
below.
CMD
DGM (LAZ) DGM (UAZ) DGM (CAZ)
Assistant Assistant Assistant Assistant Assistant Assistant

Manager Manager Manager Manager Manager Manager

No
1 DGM (HR) of each zone As the span of control of CMD An officer of the Rank of
directly reports to MD is very high, it is not possible CGM is required to
for him to control and supervise head HR function
functioning of DGM (HR).
2 DGM (HR) LAZ is also This increases the load on Separate legal cell is
acting as the law officer for DGM (HR), also HR and legal required
APDCL and all legal require different skill sets
matters are handled by
him.
3 APDCL does not have a Training activities are essential Training function needs
strong training set up. for the skill set development of to be established in
the employees APDCL
4 In APDCL Medical is a Medical function is primarily an This function can be
separate functions employee welfare function brought under HR
implications discussed earlier
Broad Functions Existing Functional Heads Proposed Functional Groups
Administrative matters DGM for respective zone Admin, Welfare, IR

Employee grievance, Disciplinary
DGM for respective zone Admin, Welfare, IR
matters
Industrial relations, union matters,
DGM for respective zone Admin, Welfare, IR
Employee welfare
Employee establishment matters DGM for respective zone Establishment
Recruitment & manpower planning ASEB Coordination Establishment
Promotions ASEB Coordination Establishment
Transfers & postings DGM for respective zone Establishment
Medical Chief Medical Officer Medical
Function assigned to Corporate
Employee Legal DGM
Legal
Training & development DGM for respective zone Training , PMS
Performance appraisals ASEB Coordination Training , PMS

We propose the following organization structure for the HR department:
D irector
HR
SM
CGM Chief M edical
Adm in, W elfare,
HR O fficer
IR
DGM DG M
Establishm ent Training, PM S
SM
SM
M anpower
Training
Planning, R ecruit
SM
SM
Perform ance
Establishm ent
Appraisals
HR Medical Total
Designation Remarks
E P E P E P
CGM 1 0 1
GM 0 0
DGM 3 2 3 2
SM 8 0 8 Additional @one per zone
AM / DM / M 2 15 2 15 @one per circle
CMO / MO 1 1 1 1
Total 5 26 1 1 6 27

The concerns related to the post of Director HR have been discussed
earlier. In case the post of Director HR or Executive Director HR is not filled,
then the CGM HR will head the function and all functions reporting directly to
Director HR in the proposed structure will report to CGM HR. The CGM HR
will report to CMD APDCL in this case.
APDCL is striving to build the HR department and transformational role for
APDCL is envisaged in the coming future. This will require introducing at
least one more position of DGM HR supported by two positions of SM HR to
handle the enhanced role of HR. Such positions will be required after approx
4-5 years from now.
CGM LAZ, UAZ, CAZ
Existing Structure
The CGMs of respective zones head one entire zone and the respective
functions. He/she is responsible for the operations of the respective zones. Each
zone is further divided into circles, which are headed by DGMs. There are a few
functions which are handled by zone CGM' s and the same are also discussed
below.
The zone level structure for each zone varies and the same is shown below:
Overall Top Level

Existing Org Chart
LAZ, CAZ and UAZ CGM
UAZ
CGM GM GM
LAZ Field HQ
DGM
SM
Technical
(#4)
Inspection
DGM DGM
DGM DGM
Central Store Lower Assam Civil DGM
Civil APDRP
Circle Circle Jorhat
SM
DGM DGM
Guwahati Building DGM
Technical Materials
Division Circle (#5)
GM
LAZ
CGM
CAZ
DGM
Circle (#6)
LAZ Operations Materials & Stores Civil APDRP

GM
GM GM
North Assam
Barakvalley HQ
Zone
DGM
DGM DGM
Technical
Circle (#2)
Inspection
DGM
Circle (#2)
Note: The position under each broad box is reporting directly to CGM LAZ
Broad functions performed by respective CGM are as follows:
CGM LAZ CGM UAZ CGM CAZ
Performs activities related to Performs activities related to Performs activities related to

Zone operations; Civil activities; Zone operations; Tariff & Zone operations;
Material management; Stores; Regulatory coordination; Procurement; Technical
R-APDRP; Tariff & Regulatory Procurement; Technical support
coordination; Procurement; support
Technical support.
Establishment activities are
Establishment activities are handled by DPM at zone
handled by DPM at zone office office

No
1 CGM LAZ takes care This enhances the span of The focus of CGM zone
of various functions control as well diluted the should primarily be on zonal
like zone operations, focus towards zone activities and MM function
material management activities should be separate from
etc zone function
2 R-APDRP function is This increases the span of For better planning and
at present being control of the CGM (LAZ) coordination, all project
looked after by CGM and impose additional planning and implementation
LAZ burden on CGM (LAZ). can be brought under one
group. Thus R-APDRP
function should go to the
project group.
3 At present each CGM Since, Assam has a wide Though, this may not have
has its office at spread and proximity to its structural implications but it
Guwahati zone consumers is the is appropriate to place
need to handle them respective CGM zone within
effectively the boundaries of zone
4 Field operation of Division of CAZ into two Whole Central Assam Zone
Central Assam Zone is areas increases the should be brought central
further divided into 2 number of posts, without control
areas Barak Valley increasing the actual work
and North Assam. load
Each area is headed
by an officer of the
rank of General
Manager
5 APDCL has one Civil Civil function is not Separate civil function is
circle in Guwahati. present in other Zones required for all zones and
This circle look after apart from LAZ. Civil Civil design function needs
the civil work Design is not present in to be established
APDCL
The To-Be Organization Structure and Man-in-position comparison has been

discussed after the As-is discussions on CGM Project & Planning; Director PMU
and Director Vigilance & Security.
CGM Project & Planning

ASEB has a separate group called project and planning for the planning and
monitoring of the projects. Projects and Planning (P&P) is responsible for
allocation of funds in project and tracking the progress of projects. 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).
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. Thus work of P&P in not limited to APDCL but it also
provides services to APGCL and AEGCL.
P&P acts as a coordinator for various PPP initiatives taken by ASEB.APDCL in
renewable energy.
The To-Be Organization Structure and Man-in-position comparison is discussed
after As-is discussions on Director PMU and Director Vigilance & Security.
Director PMU
Project Management Unit (PMU) acts as the coordinating agency for the Assam
Power Sector Development Project (APSDP) and Assam Power Sector
Enhancement Investment Programme, funded by Asian Development Bank
(ADB). APSDP has been withdrawn in June 2009. Of the 13 packages 10
packages have been completed and remaining three are likely to completed by
February 2010.
Under the Assam Power Sector Enhancement Investment Programme total
investment of 314.6 million USD is being invested. Out of these 200 million USD
is in the form of loan by ADB and 114.6 million USD is being invested by
Government of Assam.
Project Management Unit is headed by Director (PMU), and is supported by one
DGM and 4 numbers of S.M. DGM has the responsibility of monitoring the works
of all the officers of PMU. The detailed organization structure of PMU and
division of work is given below.
Director (PMU)
DGM
S.M-I S.M-II
(Environment S.M-III S.M-IV
(Project
and (Nodal (Project
rehabilation) implementatio
Officer) Monitoring)
n)
Sl. Function Responsibility

No
1 Environmental and resettlement issues S.M-I
2 Project implementation S.M-II
3 Selection of consultants and Nodal officer for ADB S.M-III
projects
4 Monitoring the progress of the projects and preparing S.M-IV
timely progress reports
The To-Be Organization Structure and Man-in-position comparison is discussed

after As-is discussions on Director Vigilance & Security.
Director Security and Vigilance

APDCL has a team of personnel for security of the headquarters. APDCL also
has one vigilance officer of the rank of the Deputy Manager to manage the
vigilance function.
"# $ !
!
% & ' (
) &* '
+
, - , , - .. -
, + #/
% #/ + , - .. -
.
&0 - 1 , - .. -
*' . , ' .
* * * * -
2 * 2 *

The To-Be Organization Structure for following departments is presented below:
Material Management - the function reports to Director Projects & MM
RAPDRP - the function reports to Director Projects & MM
Projects - the function reports to Director Projects & MM
Civil - the function reports to Director Projects & MM
IT Implementation and MIS - the function reports to Director Operations
Zone O&M - the function reports to Director Operations
Material Management RAPDRP
CGM GM
Material RAPDRP
Management
SM (#2)
GM 10th Plan APDRP
DGM
Mtrls, Tendering,
Stores
Procurement
SM
RAPDRP
SM SM
(#4) (#3)-one per zone SM
IT, New Billing
Software
Projects Civil
GM GM
Projects Civil
DGM DGM SM
Projects Design Design
SM (#3) SM
SM
MRT (#1), PMU Coordination
(#3)
(#1), Projects (#1)
IT Implementation & MIS Zone O&M
DGM CGM
IT Implementation Zone
& MIS
SM DGM SM SM
GM
Commercial, MIS Enforcement,
HQ, Tech Establishment F&A
Theft Raids
SM DGM
SM Technical, Project Enforcement
Support functions Coordination One per 2/3 circle
(Finance, HR)
SM
SM
Enforcement
IT
One per 2/3 circle
SM
CRM
Electrical Civil IT Security Secretariat Total

Designation Remarks
E P E P E P E P E P E P
CGM 4 4 4 4
GM 6 6 1 1 1 7 8
DGM 9 12 2 1 11 13
SM 29 26 19 17 6 1 1 49 50
AM / DM / M 15 15 15 15 IT @one per circle
CMO / MO 0 0
Total 48 48 21 18 15 22 1 1 1 1 86 90

The position of GM Enforcement has been introduced in order to ensure
that the promotional avenues for the cadre do not suffer. The position needs
to be reviewed at least once a year to ascertain the benefits / impact on
revenue realization of the zone. Since the targets for this function can be
easily quantified, the performance review of this function will not be a
constraint This function must be continued only on the basis of the success
and achievement of targets for which this post is being introduced. Else, it
should be discontinued.
The average number of consumers per zone in APDCL is approximately 5.4
lacs. The average number of consumers per zone among other state utilities
from Punjab, MP, Maharashtra and Gujarat is 10-12 lacs. This requires
APDCL to review the number of zone offices periodically.
Rural Electrification
Rural electrification work in Assam is being carried out under Rajiv Gandhi
Grameen Vidyutikaran Youjna. Implementation of this scheme is being done by
rural electrification department.
RGGVY Scheme in Assam is being implemented in 17 districts by APDCL. For
the implementation of scheme all activities related to coordination with Power
Grid, REC, Government of Assam and Ministry of Power Government of India is
done by the Head Quarter. Apart from that preparation of scheme, awarding of
tenders etc is also done by the head quarters and actual implementation is done
by distribution circles.
Rural Electrification department presently is headed by MD of AEGCL. He is
supported by one GM, one DGM, and 7 SMs. Each SM at HQ is taking care of
3-4 districts of Assam and responsibility of execution of schemes in each district
is given to the SM present in the Electrical circle of that district.
Detailed organization structure for Rural electrification department is shown
below:
CGM
GM
DGM
S.M
S.M (LAZ-I) S.M (LAZ-II) S.M (CAZ) S.M (UAZ-I) S.M (UAZ-II) S.M (F&A)
(Renewable)

No
1 Rural electrification This brings intercompany The RE function should
projects are not under the handling of activities be placed appropriately
direct control of APDCL, under APDCL
and are managed by rural
electrification wing headed
by CGM transmission /
MD AEGCL.
Existing Functional
Heads
- -
+ $ $
$ ' .
+ 3
, +
$ +
' .
. & *$.
'1 1
& &

We propose the following organization structure for the RE department:
CGM
Rural
Electrification
SM DGM
Renewable RE
SM
SM
(#5) 2 LAZ &
F&A
UAZ, 1 CAZ
Electrical Total
Designation Remarks
E P E P
CGM 1 0 1
GM 1 1 0
Electrical Total
Designation Remarks
E P E P
DGM 1 1 1 1
SM 6 6 6 6
AM / DM / M 0 0
CMO / MO 0 0
Total 8 8 8 8

The RE department is a dedicated department for implementation of rural
electrification under RGGY scheme and is kept separate from other project
works in APDCL. However, the same needs to be reviewed after 3-4 years
and depending upon the rural electrification / RGGY scheme implementation
requirements the RE and Projects department may be merged and
managed as a combined department. In such scenario, the CGM RE may be
re-named as CGM Projects.
Field Level: Structural and functional analysis of the field office

The field structure of APDCL is divided into hierarchical units with the HQ at the
top of the vertical. This goes down the hierarchy to zones, circles, divisions and
sub divisions. Consumer services and network management is the core
functions for which reporting is linked from sub-divisions to divisions, divisions to
circles and circles to zones.
In order to manage the core function of consumer service and network
management, APDCL broadly has 4 layers of reporting hierarchies at field level.
These are shown in the diagram below:
3
IRCA + MTI Divisions also
There are currently 154 Sub Divisions, 43 Divisions, 15 Circles and 3 Zones for
O&M and commercial activities. The broad roles & responsibilities are discussed
below:
Sl. No Hierarchical Unit (#) Broad Roles & Responsibilities

1 Head Quarter To manage the overall field and head office activities
The various functions of head quarter are discussed in
previous section
2 Zone (#3) Overall custodian of the entire field circles
Sanctioning / approving authority as per delegation of
Power
It is responsible for 4-6 circle offices
Headed by CGM level position
3 Circle (#15) Generally located at district centers of Assam state
Responsible for coordination between Division & Sub-
division. It has direct reporting of Division office
Responsible for 3 5 division offices
Sl. No Hierarchical Unit (#) Broad Roles & Responsibilities

The large amount of establishment activities handled
at this level, as circle is the appointing authority for
class 3 employees
It takes care meter reading, billing & collection of
consumers above 20KW; meter testing, meter
installation at sub stations / HT consumers
It has representation of Rural electrification to monitor
the RE works
4 Division (#43) Responsible for coordination between Sub-division
and implementation of policy directives issued from
higher authorities
Responsible for 3 5 sub division offices
It monitors the performance of subdivisions,
preparation of capital works schemes & their
execution, energy accounting, billing & revenue
monitoring
5 Sub Division (#154) It is the direct interface of the organization with the
consumers
Responsible for entire O&M activities like
breakdown/preventive maintenance, attending fuse
call, substation maintenance, street light etc.
Responsible for commercial activities like meter
reading, billing, bill distribution, collection, energy
accounting, meter replacement, consumer complaints,
theft detection etc.

We propose the following organization structure for Circle O&M. There is no
change proposed in the Division structure.
DGM
Circle (4-6)
SM
SM
Projects / RE
Division (3-5)
Execution
Technical Wing
SM
SM Elect (#1), SM
IRCA
Civil (#1)
Support Wing
SM One AM each for
MTI Establish, IT and
Accounts
SM
Energy Audit /
SPPS

Electrical Total
Designation Remarks
E P E P
CGM 0 0
GM 0 0
DGM 15 15 15 15
SM 118 118 118 118
AM / DM / M 0 0
CMO / MO 0 0
Total 133 133 133 133

Two positions of SMs have been proposed at the circle level for carrying out
Project / RE Execution and Energy audit / Monitoring of SPPS activities.
These positions need to be merged post implementation of RE schemes and
energy audit systems at field level. This can take approximately 3-4 years
time.
After the introduction of metering technology like AMR metering, IT enabled
billing for industrial / HT consumers, the position of SM IRCA at each circle
needs to be moved to zone level for handling all such consumers under
respective zones instead handling at circle level. This largely depends upon
the decision to implement such technology initiatives.
The average number of consumers per circle in APDCL is approx 1.2 lacs.
The average number of consumers per circle among other state utilities from
Punjab, MP, Maharashtra and Gujarat is 2-4 lacs. This requires APDCL to
review its number of circle offices periodically.
Conclusion
Conclusion
This chapter highlights the key recommendations / changes proposed for re-
designing of organization structure of APDCL. The details of the same are
covered in the previous chapters of this report.
The highlights of the human resource profiling carried out for the existing
employees of the company are as follows:
o The average employee age of the company is approximately
52 years and approximately 54% of the existing workforce will
superannuate during next 8 years. Therefore, the company
requires an immediate focus on manpower planning and linked
recruitment plans to induct employee at entry level.
The main recommendations made at the Company Board level are as
follows:
o The introduction of 4 board level functional directors namely
Director Operations, Director Projects & Material
Management, Director Human Resource and Director
Finance & Accounts. These board level director positions are
in addition to the existing position of CMD of APDCL.
o The positions of functional directors at Board level need to be
selected on the basis of merit and functional requirements, and
need not be treated as posts of promotion.
o The introduction of these positions at Board level will enhance
the corporate governance framework, enable greater
representation of company at board level and effective
decision making for company operations.
o As informed during stakeholder discussions, the appointment
of functional directors requires certain changes in the Article of
Association of the company, which might take some time to
incorporate. Therefore, as an interim arrangement, instead of
directors, the executive directors (ED) positions are proposed.
The main changes proposed at the Corporate and Field level are as follows:
o The span of control of CMD has been reduced to 8 from 14
positions, by clustering core business functions together and
aligning them under one umbrella.
o Internal audit has been proposed as a separate function to
maintain independence while carrying out audit activities. The
function will take care of internal and statutory audit and should
preferably be supported by external auditing firms. The internal
audit function will report to board audit committee.
o A centralized legal cell has been proposed at the corporate
office for handling all commercial and employee legal cases for
the company. The legal cell will handle cases related to land
acquisitions, consumer complaints, employee complaints,
recovery of unpaid amounts, commercial etc.
o The HR function is unified at corporate office with HR gaining a

greater transformational role. Field level presence at circle and
zone office has been created for both transformational support
and transactional activities. A total of 26 executive level
positions have been proposed, which include 18 positions at
field offices of APDCL.
o The Commercial function has been strengthened with clear
responsibility for Regulatory, Power procurement, Load
management, Energy audit activities at corporate office.
o The entire Project planning of RE, ADB & other projects,
designing, DPR preparation, Tendering, Contracting,
Procurement, Project execution monitoring, Material
management is unified under Director Projects & Material
management.
o The zone office under each CGM has been proposed to be
relocated within the jurisdiction area of the zone. To manage
the entire zone functions effectively it is appropriate if the zone
office is placed centrally within the jurisdiction of the zone and
required delegation of power is assigned to CGM zone.
o The As-is and To-be man-in-position is tabulated below:
Corporate
Electrical Civil F&A HR IT Medical Security Secretariat Total
Designation Legal
E P E P E P E P E P E P E P E P E P E P
CGM 5 6 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 6 8
GM 9 9 0 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 10 12
DGM 28 31 2 0 3 3 3 2 0 1 0 1 0 0 0 0 0 0 36 38
SM 161 159 19 17 8 11 0 8 0 0 0 6 0 0 0 0 1 1 189 202
AM / DM / M* 365 365 0 0 25 25 2 15 0 2 15 15 0 0 0 0 0 0 407 422
CMO 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1
Total 568 570 21 18 37 41 5 26 0 3 15 22 1 1 1 1 1 1 649 683
Note:
1) The numbers mentioned in above table are based on our discussions at corporate
office and on assumption that all the field level circle heads and division heads
positions are filled.
2) *: The count of AM / DM / M is based on the employee database.
3) E: Existing; P: Proposed
The benchmarking of organization structure was carried out with other state
utilities in India and based on the learning from the benchmarking exercise,
the new structure for the company was proposed.
The following solutions have been proposed to address the concerns of the
stakeholders of the company:
o The promotional avenues among various cadres have been

increased, thus ensuring employees of one company are least
affected due to promotions in other companies.
o Under circumstances in which the employee eligible for
promotion in the pre restructuring scenario based on the
common seniority list loses out on the promotional avenue due
to the companies now being different, the following solutions
are recommended:
All senior employees are promoted in their respective
companies, or
All senior employees are provided with PP based
higher positions in their respective companies, or
All senior employees are granted higher pay scale.
o The above mentioned recommendations to manage inter-se
issues are allowed till the calendar year 2018, By then,
majority of the executive workforce, which is likely to be
affected due to creation of company specific cadre would have
retired. Approximately 60% of the executive workforce will
retire by calendar year 2018.
o In case of different promotional avenues for employees in the
same organization belonging to different cadres, the concept of
PP is introduced. This will be granted to employees on the
basis of set criteria (mostly depending on performance). In
case the employee is eligible for promotions and is meeting
his/her performance standards, the employee will be entitled to
the benefits of the next level. Thus, even though the structure
does not provide for greater growth opportunities for the
employee, the career graph does not hit a ceiling in the same
organization.
Annexure Annexure 1: Benchmarking of Organization Structure

This section presents the analysis of the benchmarking exercise carried out for
APDCL with other states in relation to the organization structure. The
benchmarking exercise is limited by the granularity of the data availability from
other states and the variability of organisation structure.
In order to arrive at appropriate organization structure, PwC has obtained
relevant staffing and technical data from following organisations for
comparison purpose:
Maharashtra State Electricity Distribution Company Limited (MSEDCL)
Uttar Haryana Bijli Vitran Nigam (UHBVN)
Andhra Pradesh Central Power Distribution Company Limited (APCPDCL)
MSEDCL
Illustrative Top Level Org Structure of MSEDCL is shown below.
ILLUSTRATIVE
Top Level Org Chart
Maharashtra State Electricity
Managing Distribution Company Limited
Director
Director
Company
Vigilance &
Secretary
Security
Chief Legal CGM

Advisor Corp Commun
Director Executive Director Director Executive Director Director

Operations HR Finance Corp Planning Projects
Regional
ED CGM CGM CE ED
Executive Director
Commercial Personnel F&A Internal Reforms Projects
(#3)
CE CE CGM CE CE
Zone (#11) Commercial IT APDRP Infrastructure
CE CE
Chief Proj Manage CE
Load Central Purchase
MIS Spl Projects
Management Agency
CE CGM CE CE
Power Purchase Internal Audit Distribution Material Mgt
(source: Compiled from the information available at www.mahadiscom.in)
Main Observations
The organization is structured functionally with key function operations,
finance, HR, vigilance etc reporting to Managing director directly.
Single point accountability for operations is built at corporate level. The
function is responsible for monitoring and action planning for O&M
activities.
Regional / zonal structure in place at the field level with accountability of
operation and commercial activities of zone to ensure that the corporate
level is not involved in day-to-day field operations and focused towards
strategic role.
The zonal heads are functional from distinct locations and the locations
are within the jurisdiction of their operational area.
Emphasis on corporate planning function, responsible for internal reforms,
ADPRD, special projects and regulatory compliances.
Finance and accounts department is responsible for finance, internal audit,
IT and MIS projects and reporting to MD directly.
Focus is given on vigilance function to reduce theft and energy pilferage.
The function is reporting to MD and has presence at field offices also to
ease the implementation of anti theft policies.
Enhanced focus on HR function with upgrading the HR head post to the
level of ED and it is reporting to MD directly. The post of ED HR is
introduced couple of years back.
UHBVN
Illustrative Top Level Org Structure of UHBVN is shown below: (source:
www.uhbvn.com)
ILLUSTRATIVE
Chairman Top Level Org Chart
Uttar Haryana Bijli
Vitran Nigam Limited
Managing
Director
Company
Vigilance
Secretary
Director Director GM Director

Technical I Finance HR & Admin Technical II
CGM CGM CE OP CAO Financial Advisor GM CGM CE OP

SO PD&C Panchkula Accounts HQ Commercial MM Rohtak
GM SE OP Chief Auditor XEN SE OP

XEN IT
SO&EA 5 Zones Zone 5 Nos 5 Zones
SE Const.
GM SE GM FA & CAO SE GM
Panchkula &
PD&C Civil Regulatory Affairs MM Stores & WK Purchase I&II
Rohtak
Main Observations
The organization is structured functionally with key function technical,
finance, Admin reporting to Managing director directly
Accountability of field operations is shared between technical heads at
corporate level. The function is responsible for monitoring and action
planning for O&M activities
Zonal structure in place at the field level with accountability of operation
and commercial activities of zone. The zonal heads are based at distinct
locations within the jurisdiction of their operational area
IT and reporting to MD directly. Adequate emphasis is given to audit
function. The regulatory function is handled by finance head.
The technical functions like material management, system operation,
construction, metering are shared between both the technical heads
HR & Admin function is reporting to MD directly.
APCPDCL
Illustrative Top Level Org Structure of APCPDCL is shown below: (source:
www.apcentral.com)
ILLUSTRATIVE
Chairman & Top Level Org Chart
Managing AP Central Power Distribution
Director Company Limited
Company Chief Vigilance

Secretary Officer
Public Relation GM
Officer Corp Planning
Director Director Director Director

Operations Project & P & MM HR & Commercial F, RA & IT
CGM CGM CGM CGM CGM

Operation Hyd Zone Projects Commercial Expenditure
SE SE CGM CGM GM
Circles Circles P&MM HRD IT
GM SE CGM GM
EA M&P IR Cost
Main
SE
Observations
SCADA
The organization is
structured functionally with key functions of operations, projects, HR,

finance reporting to Managing director directly
Single point accountability for operations built at corporate level. The
function is responsible for monitoring and action planning for O&M
activities
The field O&M structure is at circle level with accountability of operation
and commercial activities of circle.
Specific focus on energy audit, scada; lies with operations at corporate
Combined procurement and material management department at the
corporate.
Focus on projects planning and function is kept separate from operations
Focus on public relations and communication responsible for external
communication so as to build a positive image
IT and reporting to CMD directly.
Key Learning
In the table given below we have summarized the key learnings from the
benchmarking of the organization structures of different utilities.
Structural
imperative Learning Comparison with APDCL
Structural basis All organizations are structured as APDCL has functional
functional structures. Few structures. But some Functions
organizations have regional are reporting to CGM
structure for operations operations.
Functional Organizations have clustered most Most of the functions are not
clustering of the core functions together clustered together. For example
R-APDRP is with CGM (LAZ)
but RGGVY is with CGM/
transmission
Operations Organizations have representation For Operations APDCL has
of operations at corporate level with single point responsibility, where
single point accountability for O&M a DGM is responsible for the
activities in field. operations of the circle in field
Commercial and Most organizations have the APDCL also has regulatory and
regulatory regulatory function combined with commercial function together
the commercial department and and is headed by a CGM
focus to ARR & tariff filling and
handling regulatory compliances
Projects Project is a clearly defined function Projects is not clearly defined
in organization whereas, in few it is and different projects are being
clubbed with operations handled by different groups
Material Mostly, MM is looking for stores as MM function is divided into 2
Structural
imperative Learning Comparison with APDCL
Management well procurement function and is parts material procurement and
clubbed under either operations or stores. Again some procurement
projects. is being done at zonal level (By
CGM operations) and some at
company level
Finance All organizations have defined F&A F&A is a separate function
function reporting directly to the reporting directly to CMD
head of organization
Company The CS function is reporting to head The CS function is directly
secretary of the organization directly except in reporting to Board / CMD
few cases where it is clubbed under
F&A or HR function
Internal audit Function is clubbed under F&A Function is clubbed under F&A
function with adequate focus on function but adequate focus is
audit missing
Information IT is a clearly dedicated function in The IT function is not present in
technology all organizations for IT planning & APDCL and IT related activities
implementation. In most of the are being clubbed with R-
organizations, it is working under APDRP
F&A head
Human resource HR is an important department in all No central HR functions. Work is
organizations with a direct reporting distributed at zonal level and
to head of the organization certain important functions like
inter zone transfers and
promotions are being done at
ASEB
Vigilance All organization show adequate APDCL has a Director Vigilance
focus towards vigilance function. (Employee vigilance) but field
Mostly, head of vigilance is reporting level vigilance is not present
to head of the organization but field
vigilance is working along with
operations at field level
Communication Most organizations have a distinct Communication and PR function
and PR communication department for is not present in APDCL and
communication and public relations. needs to be established. As a
This function either report directly public utility it is important to
head of the organization or forms a communicate organization
part of larger function such as HR policies and actions to general
public and key stake holders.
Annexure 2: Stakeholder Discussions: Key Points Discussed
This summarizes some key issues raised during various stakeholder meetings
at head quarter and field offices and the summary of discussions took place is
as follows:
Handling of The ADB fund is utilized both for distribution and

ADB related transmission business
activities for It is appropriate if ADB coordination cell (PMU) is kept with
Assam Power transmission business for overall monitoring
Sector
Board The point of including directors in the organization structure

representation was discussed to increase the board representation of
with more company for decision making
functional The proposed directors will be selected based on merit &
directors functional requirements
Need for The internal audit function needs to be introduced with

Internal Audit reporting to board audit committee.
The incumbent heading internal audit function need to be
qualified CA or equivalent
The project It was desired to study West Bengal (WB) distribution

activities are structure to curb the issue
not owned by The WB has earmarked specific position to be accountable
field for project execution among the available engineers at sub
distribution division / division office
The location of The appropriate zone office location was discussed for CAZ
CAZ zone as the CAZ has wide spread
office The splitting the zone in two parts was also discussed
It was discussed to highlight this during stakeholder
presentation / discussion
R-APDRP The envisage role of the R-APDRP function was discussed

should be kept It was discussed that it is a project activity and appropriate if
under projects placed under Projects
Promotional The issue discussed that it is possible that employees may

avenues for all reach to the highest level in their cadre if the inter-company
cadres in each transfer is stopped.
company There should be equal opportunity for career progression
also
Annexure 3: Tentative List of Various Full Powers

This summarizes some of the full powers which are assigned to the committee
comprising functional directors. This enables them to take collective decision
for smooth functioning of company and ensure avoidance of referring large
number of cases to Board approvals.
Works chargeable to capital / revenue heads of accounts
Administrative approval for capital expenditure on works of a project
including residential / non residential buildings not forming part of a
project estimate
Administrative approval for capital expenditure on works for the purchase
of land for construction of 33KV Sub/Stn., office and residences
Administrative approval for expenditure under capital / Revenue Head for
the purchase of new Motor Vehicles
Accept tender for the execution of work by contract
Issue work orders for capital works / maintenance; works / repairs without
calling quotations; service / repair from original manufacturer
Dispose of material, T&P, articles declared surplus, unserviceable or
obsolete
Write off irrecoverable items outstanding in the misc.
To sanction expenditure in connection with legal cases; sanction
expenditure on compensation / ex-gratia payment
Acceptance of single tender after invitation of open tenders
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Technical Assistance Consultants Report

Project Number: 41614

India: Energy Efficiency Enhancement Project in

For Assam Power Distribution Company Limited

Redesigning the Organization Structure

AS-IS Analysis and TO-BE Recommendations ............................................................................................................8

Background of Assam Power Distribution Company Limited

of LAEDCL was changed to Assam Power Distribution Company Limited

The broad role of the APDCL is as follows:

Scope of this Study

Reviewing the efficacy of the existing performance management system and

This report pertains to study of re-designing the Organization structure for

Objective of the Study

Approach & Methodology for the study

Assess Design Construct Implement/

Determine Assess Agree Design Develop Construct Develop Migration and

Job Structural Comp Linkage Team Perform

Understand Business Context, Expansion plans;

Field visits were

Options were generated

The approach has 3 main stages:

Structure of the Report

Sl. No. Earlier Designation New Designation

Human Resource Profiling

The AS-IS and TO-BE Structure

Board Level: Board of Directors of APDCL

The Board of Directors of the company shall have an optimum combination

Sl. Issue Experience from other Recommendations /

Future Scenario and Migration

An Overview of the Entire Structure of APDCL

Overall Top Level

Chief Medical CGM DGM CGM CGM

Director CGM DGM Company

The broad description of the functions reporting directly to CMD is summarized

Sl. Function / Position Broad Roles & Responsibilities

9 Company Secretary Act as company secretary on behalf of BoD

Sl. Issue Experience from other Recommendations /

To-Be Organization Structure

Director Director Director Director

DGM Chief Medical CGM

The following is a summary of the key changes recommended:

Changes proposed under Director Projects and Material Management:

Changes proposed under Director Operations:

cadre within the company should be built. Accordingly, we have proposed

Changes proposed under Director F&A :

Changes proposed under Director HR:

Changes proposed under zone office and circle office:

A new setup of GM enforcement is proposed under CGM zone to

Comparison of As Is and To Be Man-in-Position

Building Cadres and Promotional Avenues:

the position for a longer duration to have sufficient time to

F&A and increasing the number of positions of SM F&A, the

ensure effective implementation & administration of the

next level in the pre-restructuring scenario now loses out on

This policy of PP for cadre based promotions is not

o Increasing the tenure of Top Management, especially at the level of

Corporate Level: Structural and Functional Analysis of the Corporate

Sl. Name Function Responsibility Assisted by

DGM-I Billing DGM-II DGM-III

Assistant Assistant S.M-VII

Assistant Assistant Assistant

Indicates position for which

Sl. Issue Impact Structural Implication