BENGALURU: Accepting the report submitted by G Gurucharan, retired IAS officer and Director of Public Affairs Centre, CM Basavaraj Bommai on Monday announced the extension of the tenure of the committee for rejuvenation of electricity supply companies (ESCOMs).
The one-man committee submitted a report to Bommai and to the Energy Department recommending measures to improve the financial efficiency and revitalisation of ESCOMs. The report highlighted the present condition of ESCOMs, suggested measures to revamp them with medium and long-term initiatives and improve the efficiency and financial condition.
An official from the Energy Department told The New Indian Express that it was suggested to have an energy policy to chalk out on what lines the department should think and have a structural re-organisation. It was also suggested to have a company holding format on the lines of Gujarat, where the distribution companies are working on service lines, but the purchases and assigning power purchase agreements are done by the holding companies.
It was also suggested to have a business-oriented model and have strict regulatory mechanisms. The official also said that the committee also noted that industries and commercial organisations bear the financial brunt, so there is a need to re-rationalise the tariff structure.