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Vibrant power sector faces manpower challenges

Sugat Gamare ,  Friday, September 16, 2011, 16:22 Hrs  [IST]

Sugat GamareIt is said that per capital power consumption is the macro indicator of development of the country. Although there is a difference of consumption pattern in the city and villages, the average figure still gives a fair idea. More power consumption indicates resourcefulness of the individual. Ironically, the difference between supply and demand has a bearing on consumption, which also needs to be taken into account.

The country is poised for an average GDP growth of 8 per cent; though some ambitious economists also foresee double-digit growth. Therefore many entrepreneurs are seeking to diversify in the power sector as their first choice.

It is felt that in the process of fair competition, the state owned organizations take back seat and private players take the lead. This has been the experience during the reforms process of the telecom and banking sectors. There is an apprehension that the same trend will continue in power sector as well. However when one ponders, one realizes that it is a natural phenomenon and inevitable. No one is responsible for whatever good and bad happens with state-owned organizations. The mindset of all stakeholders starts gradually changing e.g. equity holders would shift focus on dividend than service, investors will talk about interest as the concept of interest-free loan from DFI will evaporate. The consumer will be noncompromising as it will have options by then. Community at large will slowly accept the change that electricity is not as a part of welfare but a commodity. Lastly, employees will give preference to pay and benefits over loyalty. We witnessed flourishing of private players and struggling of state-owned organizations, post liberalization.

The Electricity Act was passed in 2003 and this ushered liberalization of power sector. In Maharashtra, erstwhile Maharashtra State Electricity Board, was unbundled into three companies as per the phase of operations-generation, transmission and distribution. At the same time the central grid has undertaken huge expansion of power grid in the country. As the sector is opened up, private payers are entered in huge capacity to leverage on the demand. In order to maintain its efficiency, stateowned organizations have resorted to EPC based operations, JV partnering as well as outsourcing of distribution circles through private franchises. As an effect, today we see divergent enterprises-small, medium and large, from Rs10 crore to Rs10,000 crore, investing in the power sector to get share of growing economy.

The power sector will undoubtedly face challenges in availability, training and retention of manpower. The industry has already started facing shortage of skilled and experienced engineers across all levels. At the grass-root level the "gangs" which are employed for heavy laborious line work are fast diminishing. Availability of such gangs, which represent seasonal contractual labour, are of paramount importance in completion of projects such as laying of lines, erection of towers and commissioning of sub-stations, heavy maintenance work in bays & hot line maintenance. Operators and technicians that are employed on the basis of their ITIs NCTVT certification are in short supply. Junior engineers taken on the basis of Diploma and Degree education are plenty but only few qualify the selection tests. Further the quality diploma and degree engineers are swayed by IT companies and electrical companies becomes their second choice. Inequality in pay, benefits, training and profile offered by the private player visà- vis state-owned companies, creates differentiation. Private players become the first choice for meritorious and ambitious engineers.

Due to its state-wide network of government-owned utilities, job postings are made at distant places which also become barriers and turns into a "noshow" at the time of joining-resulting in all recruitment efforts going down the drain. Pay differentiation at senior level is very high, therefore the cases of senior engineers wanting to take option of leave is increasing in state owned organization, where engineer can take up another employment for specific period while retaining claim for re-employment in the parent organisation.

Since all and sudden many private players have entered the sector, almost simultaneously, the demand for skilled and experience hands have gone up for people in all cadres like technical, finance, accounts and even human resources.

It can now be summarized that stateowned organization which otherwise are well established, reputed, respected and secure, have started facing a peculiar challenge of attracting, retention and motivation of employees. This issue will become complex in future. Hence it is of paramount importance to focus management orientation to address these issues. State utilities will have to re-orient their HR processes to ensure that they do not lose talent to private competitors.

Sugat Gamare is General Manager - Human Resources with Maharashtra State Electricity Transmission Company Ltd.
 
                 
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