bangalore electricity supply company...

Bangalore Electricity Supply Company Limited(Wholly owned Government of KarnatakaUndertaking)

(CIN- U0401 OKA2002SGC030438)

PROCEEDINGS OF THE 75th MEETING OF BOARD OF DIRECTORSOF BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED HELDON WEDNESDAY, THE 2nd MARCH 2016 @ 12.00 NOON ATCORPORATE OFFICE, BESCOM, K.R.CIRCLE, BENGALURU - 560001.

MEMBERSPRESENT

SI. Sriyuths/Smt BOARDNo.1 P.Ravi Kumar Chairman

2 Pankaj Kumar Pandey Managing Director

3 Jawaid Akhtar Director4 H.Nagesh Director (Technical)

5 B.LGuru Prasad CFO& Director (Finance)

6 T.H.M.Kumar Director

7 K.T.Mahanthappa Director---

8 M.Nagaraj Director

9 A.N.Jayaraj Director

INVITEE

[T.H.Shakeel Ahmed ~[_C~hi~!_GeneralM~nag~_(F&C)

IN ATTENDANCE

I Company Secretary _JI K.T.Hiriyanna

At the outset, the Managing Director welcomed the Chairman,Directors, Company Secretary and other officers to the meeting. TheManaging Director further requested the Chairman for launching of webbased virtual library for BESCOMwhich was developed by the ICT & MISwing of BESCOMwhich is aimed at focusing collection of digital objects,

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-_fi Bangalore Electricity Supply Company Limited•• SCOM (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

this proposal is re-considered was that the INNOVARI'S Interactive EnergyPlatform (IEP) proposed to be provided to BESCOMwith the ability to~integrate renewables (particularly solar power roof tops and solargeneration, wind power etc.,) and INNOVARI's aid in balancing the grid. Asobserved, grid imbalance due to renewables will become a major problemfor Karnataka State especially in view of around 5000 MW of solargeneration is expected in a couple of year with 3000 MW installed windcapacity at present. IEP effectively addresses this problem. BESCOMmayconsider this feature, a very useful and desired one along with the otherbenefits, the IEP provides.

The detailed discussion related to Innovari's IEP was concluded. Then Chairman advised MD to get the revised proposal from M/s.INNOVARI thatexplains in detail as to how it benefits the utility and functionality of therenewable integration and grid balancing functionality of IEP. Innovarimentioned during the presentation that initial payments for this project willbe made by USAID and INNOVARI. BESCOMwill start paying only aftermilestone based commitments are visible. The Chairman, consideringthe request asked Innovari to submit a revised proposal withdetailed commercials/ payment schedules with detailedmilestones to be attained and benefits that are going to bederived.

The minutes of 74th meeting were confirmed without anymodification by the Board. In the meanwhile the Chairman once againinvited the attention of all the Directors with regard to the provisions laiddown under new Companies Act i.e., Companies Act 2013, section 118 andsecretarial standards specified under section 3 of Company Secretaries Act1980 and as approved by the Central Govt.

The Board directed the Company Secretary to follow the secretarialstandards with respect to Board Meetings of BESCOMspecified by theInstitute of Company Secretaries of India constituted under section 3 of theCompany Secretaries Act 1980 and as approved by the Central Govt. TheCompany Secretary further apprised the legal provisions to the Board that"if any default is made in compliance with the provisions of thesesections in respect of any meeting, the company shall be liable topenalty of twenty five thousand rupees and every officer of theCompany who is in default shall be liable to penalty, of five, It

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--Banqalore Electricity Supply Company Limited

(Wholly owned Government of Karnataka Undertaking)(CIN- U0401OKA2002SGC030438)

thousand rupees." All the Directors who were present noted thisprovision laid down in the Companies Act 2013.

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SUBJECTNO.BoD 75/03: "Action taken report" on the minutesof the 74th meeting of Board ofDirectors of BESCOM held on 14thJanuary 2016.

The Board reviewed the "Action taken report" on the minutes of 74thBoard of Directors Meeting held on 14thJanuary 2016. While reviewing theactions taken, Board observed the following:

(1) M/s.Infosys and M/s.N.Soft were asked to incorporate thechanges in the software to enable BESCOMto provide' On Line L:Payment' facility to the consumers at free of cost. In order toimplement the decision of BESCOM,M/s.Infosys has to providenecessary co-ordination & co-operation in implementing changeproposal! request as per the existing agreement clause. Boardtook note of the efforts made by the MD and D(F) BESCOMwith regard to calling and requesting M/s.Infosys to attend thejob as per the requirement of BESCOM.Board further observedthat there are dues of payment to an extent of about Rs.58.00crores to M/s.Infosys which can be withhold till the required jobis executed by M/s.Infosys.

(2) Chairman advised that, a letter may be addressed to theMr.Vishal Sikka, CEO of M/s.Infosys. MD expressed that ameeting need to be convened under the Chairmanship of ACS, " i

Dept. of Energy, Govt. of Karnataka at the earliest possible Vtime. The Chairman advised the MD and CFO & D(F)accordingly to convene the meeting at his convenienttime at the earliest. Accordingly the GM(ICT&MIS) totake immediate action.

SUBJECTNO. BoD 75/04: Proceedings of the Board SubCommittee meetings of BESCOMfor kind noting.

MD informed the Board that the following meetings of subcommittees of Board were held during the period between of 74thand 75th

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Bangalore Electricity Supply Company Limited(Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

Board of Directors Meetings. The Board noted and considered theproceedings and resolutions passed thereat.

SI. Meetings of Sub-Committees Held onNo.1 29thBorrowings Sub-Committee pt February 20162 90thCentral Purchase Committee 17thFebruary 2016

The Board authorized the Company Secretary, BESCOMfor compliance ofstatutory requirements in filing necessary e-forrn with the Dept. ofCorporate Affairs, GOr with regard to creation of charge as per applicablesections 77-87 of Companies Act 2013 in respect of borrowings.

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SUBJECTNO.BoD 75/05: Compliances under Companies Act2013 and other applicable Acts toBESCOM-A report by the CompanySecretary.

As a statutory requirement under section 205 (1) (a) of theCompanies Act 2013, the Company Secretary submitted the compliancereport for having complied various provisions laid down under CompaniesAct 2013 and other applicable Acts to BESCOM. Further, the details ofcompliances made by various section heads of Corporate Office, Zonal,Circle and Divisional heads who were responsible for necessarycompliances in their respective areas of work upto 3pt January 2016 wereplaced before the Board by the Company Secretary. The Board perused thesame and further directed the Company Secretary, all the ChiefGeneral Managers and General Managers of Corporate Office totake necessary actions wherever delay in compliance is observed,without allowing for any default, liability to fine, penalty,prosecution and such other penal measures on the Directors andCompany by enforcing authorities under the respective Acts/Enactments.SUBJECT NO.BoD 75/05A: Amendment to the Board resolution

passed at 73rd Meeting held on30.11.2015.

With the permission of Chairman, an amendment was moved~ y CFO& D(F) for the Board resolution passed at 73rd Board of Direc \eeting

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~.:.~s:c"'olMO Bangalore Electricity Supply Company Limited(Wholly owned Government of Karnataka Undertaking)

(CIN- U0401OKA2002SGC030438)

held on 30.11.2015 in respect of resolution No.BoD 73/10, the agenda itemrelated to "providing online payment facility to the consumers at free ofcost". The CFO& D(F) requested the Board to amend as below:

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Resolution as existingAmendment as proposed by the

GM(Rev)(b) The above approved modes

should prove that the same are (b) The above approved modeseconomically feasible to should prove that the sameBESCOM and advantageous are economically feasible toboth to consumers as well as BEseOM and advantageousBESCOMand also same should both consumers as well asbe acceptable by KERCas per BESeOM.the stipulated norms if any

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The Board noted that the subject proposal was already submittedbefore Hon'ble KERCduring the year 2015 tariff filing and it was neitherconsidered or rejected. Under the circumstance, it need not be resubmitted to Hon'ble Commission. Board considered the proposal ofamendment and resolved as under in partial modification of earlierresolutions:

"RESOLVED that, for the reasons explained, approval be andis hereby accorded for the following":

(1) To extend the facility of "on-line payment throughdebit/credit card" to the consumers at free of cost up to l:the bill amount Rs.2000/- per month if the payment ismade on or before due date.

(2) To extend the facility of "on-line payment through netbanking" to the consumers at free of cost irrespectiveof bill amount per month if the payment is made on orbefore due date.

Above approval is subject to satisfying the following:

(a) The approval is for initial period of one year only andsubject to review by the Board beyond initial period ofone year. \\ \\

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'.~ Bangalore Electricity Supply Company Limited••• COM (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

(b) The above approved modes should prove that the sameare economically feasible to SESCOM and advantageousboth to consumers as well as SESCOM.

"RESOLVED FURTHER that, the General Manager (Revenue)/General Manager (F&R), SESCOM be and is hereby authorized tosubmit a quarterly report to CFO & Director (Finance) with regardto working of the above approved system advantageously both tothe consumers and SESCOM economtceuy",

PART-II SUBJECTS

SUBJECT NO.BOD 75/06: Arbitration case and other cases filedagainst BESCOMby MIs. ABB Ltd., inrespect of RLMS works executed inBESCOM

The following were submitted:(1) PreviouslyBESCOMhas implemented Rural Load Management

Scheme(RLMS)keeping in view the following objectives:(a) To reduce distribution system losses and to improve

voltage regulation in the distribution network.(b) To facilitate energy audit in distribution system more

effectively.(c) To provide quality power supply to IP sets as per the

policiesof the Governmentof Karnatakafrom time to timeand 24 hours continuespower supply to all other categoryof consumers.

(d) To increaseBESCOM'srevenueby increasein consumptionof metered category.

(2) Tender was called vide enquiry No.BCP1123/2004-05 dated03.01.2005 for execution and improvement of 11kv LT lineworks on partial turnkey basis.M/s. ABBLtd., was the qualifiedbidder, to which, DWAwas issuedfor executionof works under14 different lots (14 divisions) at a project cost of Rs.159.59crores with a completion period of 9 months from the date ofLoI.

(3) The work was executed mainly for improving the RuralDistribution System by switching "ON/OFF" the LT circuits of

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distribution transformers adopting IT techniques by usingprogrammablelogiccontrol.

(4) As per the contractor's request (M/s.ABB Ltd), the deliveryextension for materials for various purchaseorders of total 14lots was given upto 31.07.2007without levy of penalty underthe justified circumstances. However there was a delay byM/s.ABBLtd., for completion of the work and hence penaltywas levied to an extent of Rs.12.06crores as stipulated undercommercial conditions clause of DWA and necessarycommunication was also made to M/s.ABB Ltd. In themeanwhile concerned banks were also informed for invokingencashmentof ' BankGuarantees' in respect of 5 divisions foran amount of Rs.5.64crores.

(5) Further to the above, M/s.ABBLtd., brought an interim stayorder from civil court restraining BESCOMto invoke BG videorder dated 23.06.2010.M/s.ABBLtd., further approachedHighCourt of Karnataka for appointment of Arbitrator on07.07.2013.Accordinglythe arbitration proceedingswere takenplaceon 07.07.2013,22.06.2014and 18.01.2015.

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The perused the following significant points:(a) In the MMRmeeting chairedby Hon'bleEnergyMinister, it was

directed BESCOMto settle the caseamicablyout of court withmutual consent of both the parties.Accordinglya meeting wasconvened with M/s.ABB on this issue on 25.06.2014. ACommitteewas constituted to bring out the facts and justifiedreasons for the delay which are attributable to BESCOMorM/s.ABBLtd., or beyondcontrol of both the parties.The Boardperused the report of the Committee dated 16.08.2014,proceedings of the Committee dated 03.08.2014 and10.09.2014.The Board further perused the letters addressed to theCorporateOffice by the concernedExecutiveEngineer (Ele) ofthe divisions which have shown that there are considerabledelays on the part of BESCOMto issue associated materialsfrom BESCOMstores (Hiriyur Division letter dated 19.11.2010,Ramanagara Division letter dated 10.11.2009, Nelamangala",\r

~.~'\l.

(b)

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Division letter dated 06.11.2009, Kolar Division letter dated03.12.2009, 16.11.2010, KGF Division letter dated 04.12.2009,22.11.2010, Harihara Division letter dated 12.11.2010).

(c) It was observed from the Committee proceedings dated10.09.215 (Meeting was held on 03.08.2015), the Law OfficerBESCOMwas directed to file a joint memo through respectiveCounsel before the Arbitrator stating that the steps are taken tosettle the dispute amicably out of court. Further to this, onemore meeting of the committee was held on 11.08.2015 andthe point of dispute as presented by the contractor (M/s.ABBLtd.,)

(d) It was further observed by the Board that the Committeeconstituted for dispute resolution had not completely come to afinal conclusion, but brought out the facts as under:

(1) The materials earmarked for one particular feeder havebeen utilized for different feeders and subsequentlyregularization is made at a too later date. This type ofdelay in returning materials created scarcity of materialsfor the works of other feeders under the scheme.

(2) As per PERTChart of DWA, the firm had to supply theirportion of material completely within 17.05.2006, but theycontinued to supply the materials upto 01.08.2007 etc.

(e) The different issues related to disputes were also perused asdiscussed in the meetings of Committee:(a) Rate of penalty was agreed by both the parties @10%•

(b) Both the parties were agreed for the applicability ofpenalty clause only to the incomplete portion of work.

(c) It was agreed by both the parties to apply P.V. clauses forcertain materials.

(d) Executed value of work is Rs.190.99 crores agreed by boththe parties.

(e) Payments made is to an extent of Rs.177.78 crores agreedby both the parties.

(f) Refundable penalty is Rs.12.08 crores: both the partieswere agreed for reconciliation with the BESCOMr cords.

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(f) In the past a proposal was submitted to the Board at71st Board meeting held on 30.09.2015 for approval onthe following:(1) To approve for refund of penalty already deducted

for the delays not attributable to the contractor(Mis. ABB Ltd.,) as certified by the concernedExecutive Engineer(Ele)'s divisions.

(2) To approve Rs.2.60 crores to be paid to M/s.ABBLtd., for maintenance works which is blockedwithout release.

(3) To approve M/s.ABB Ltd's pray to includeP.V.Value for the project.

(g) After going through the proposalMD, BESCOMwas authorizedby the Board at its 7pt Meeting to delegate the existingCommittee which was already formed for dispute settlementout-of-court/ through Arbitration mechanism and to furtherexamine /re-look thoroughly into the issues related to thedispute and to submit the comprehensivefresh proposal/reportto the Boardwith unambiguousopinion/views.

(h) Accordingly the present proposal is submitted beforethe Board with a report of the Committee dtd31.12.2015.

(i) CFO& Director (Finance)on observing certain critical aspectshad sought certain details/data related to issueof materials tothe work spot , the delays involved in providing requiredmaterialsetc, as under:(1) The committee in its report has stated that, the non

availability of materials as the primary reason for delayfrom BESCOMside which has led to consequential delayfrom M/s.ABBLtd for executionand completion.

(2) However, the committee in its report has also stated that,BESCOMalso issuedamendments for 8 Meter poles, DiscInsulators, etc. before the end of 2006 or early 2007.Inspite of this, there was a delay of over 2 years becauseof the shortageof samematerials.

(3) If it was partial turnkey project, what is the actionproposed on the officers of procurement <;ell(or whoever

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called for tender) without having the necessarymaterialsneededfor work.

(j) The details/queries raised by CFO& O(F) as above wereanswered by the GM(Proc) suitably as under:(1) As per the cost register/records available in the

Ramanagaramdivision, different line materials are issuedfrom BESeOMtill Jan-2010. A statement of last date ofmaterialsissuedto different feederswere also furnished.

(2) While carrying the RLMSworks in the field, the quantity ofmaterial requirement increased. The available materialsdrawn for one feeder were used for other feeders in orderto complete the feeder which required less material andfeeders for which major quantity of material required gotdelayed, until material were supplied. As per the costregister/records available in the Ramanagara division,different line materials are issued from BESeOMtill Jan-2010. A statement of last date of materials issued todifferent feederswere also furnishedto the Board.

Board perused the above details and went through the entireproposal. The ManagingDirector explained in detail, the various aspectsthat have contributed to delay in executionof works and consequentiallevyof penalty. M/s. ABB Ltd., has clearly indicated that the delay inexecution was caused only due the delay in issue of materialsfrom BESCOM. To substantiate the same, the documentary evidenceswere produced i.e., letters addressed by the concerned ExecutiveEngineer's(Ele) of Divisions.Board also discussedas to any possibility ofinitiating actions on the ExecutiveEngineer's(Ele) and other field officerswherever delays are attributable to BESeOM.The Director (Tech) furtherexplained that, due to material diversion from one work to another needywork of the same scheme certain delays are caused. Director (Finance)further expressedthat the issueneedto be settled fairly sinceat later date,circumstancesmay ariseto answerto the possibleseriousqueriesof Audit.

The Board further perusedthe annexures& data submitted and alsothe committee report and observedthat there is substantialdelay is causedin supply of materials from BESeOMside also in many cases. Hence thecontractor is no way liable for penalty in such caseswhere the elay isclearly attributable to BESeOM.Sri.J~~aid Akhtar, Director expr\;! d that,

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a suitable finance person has to do proper calculation and such calculationshould undergo proper check instead of bringing the whole issue beforethe Board including the calculation part. The Board can only approve theproposal in principle. Board noted that certain materials like transformerswere issued with delay and M/s.ABB was asked to complete the workwithin a very small span of time which is found practically not possible forhim to complete. Board observed that mainly there are two parts for thedelay in execution i.e., delay on the on the part of BESCOMand delay onthe part of M/s.ABB , Moreover, the base date had to be taken for fixingthe revised target date is from the date on which last item of material wasissued. Based on revised target date only penalty need to be calculated.The calculation part, arithmetical aspects shall be thoroughly examined bya suitable finance person (CGM IIA)and refund of penalty be admitted andmade. Board further felt that if M/s.ABB agrees for this fair settlement,arbitration case need not be further continued and maintained as mutuallyagreed. Reckoning all these significant points, after a detailed deliberationsthe proposal was considered and the following resolutions were passed inthis context:

liRESOL VEDthat, for the reasons explained, approval be and ishereby accorded to authorize MD, SESCOM to refund the penaltyto the extent justified and delay not attributable to thecontractor, Mls.ASS in respect of RLMS works executed inSESCOMincluding the maintenance contract subject to satisfyingthe following:

(1) The refundable amount shall be authenticated bythorough pre-verification by the CGM(II A)

(2) The revised target date for completion shall be reckonedfrom the date of the issue of last material to the work spotfrom SESCOM.

(3) An undertaking shall be taken from Mls.ASS that SESCOMwill not be liable for any interest payment for therefundable amount in any way and the payment shall be infull settlement of dispute. "

(4) Necessary Certification shall be made by the ExecutiveEngineer(Ele) of the resp:ctive Divisions. r~\~


(CIN- U04010KA2002SGC030438)

(5) To release the amount 'if any' due for maintenance workswhich is blocked without release, on pre-verification/auditby CGM(I/A).

"RESOLVEDFURTHERTHAT, The GM (Proc) be and is herebyauthorized to take all further necessary actions in getting revisedcalculation sheet prepared, verified, Pre-audited and in releasingof outstanding payments to M/s.ABB."

"RESOLVEDFURTHERTHAT,necessary explanations be calledby the GM (A & HRD) on the concerned officers who are directlyresponsible for the delay in the execution and to place the samebefore the ensuing Board of Directors meeting as an "action takenreport. "

SUBJECTNO. BOD 75/07 : Enhancement of delegated power toborrow short term loan / overdraft/working capital requirementfrom commercial Banks/FinancialInstitutions.

The CFO& D(F) explained the following:(1) As on date borrowing limit delegated by the Board of BESCOMis

upto RsAOOOcrores. In order to mitigate the liquidity problem dueto mismatch between receipts and payments from time to timethere is an utmost need to enhance the borrowing limit of thepresent level.

(2) Present limit of RsAOOOcrores was approved by the Board at its67th meeting held on 18th March 2015. As against this, BESCOMhas already availed the short term loan/overdraft as under:

(A) SHORTTERMLOANAVAILED:51. OutstandingNo. Name of the Bank/Financial Institution Amount

(Rs.in Crs.)1 Vijaya Bank, K.G Road Branch, Bangalore. 500.00

2 Corporation Bank, Corporate Finance Branch, 350.00Bangalore.

3 State Bank of Mysore, Corporate Banking Branch, 100.00

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M.G Road, Bangalore.4 Bank of Maharashtra, Koramangala Branch, 406.22

Bangalore.5 Syndicate Bank, Gandhinagar Branch, Bangalore. 68.75

Total. 1424.97(B) OVER DRAFT AVAILED·.

SI,No. Name of the BankAmount

(Rs.in Crs.)

1 Vijaya Bank, K.G. Road Branch, Bangalore. 400.00

2 Canara Bank, Town Hall Branch, Bangalore. 850.00

3 Syndicate Bank, Gandhinagar Branch, 200.00Bangalore.

4 Bank of Baroda, K.G. Road Branch, Bangalore. 150.00

5 Bank of India, K.G. Road, Bangalore. 200.00

6 State Bank of Mysore, Corporate Banking 300.00Branch, Bangalore.

7 State Bank of India, Mid-Corporate Branch, 100.00Bangalore.

Total. 2200.00The Board perused the following:

(a) To meet the additional power purchase payments, overdraft ofRs.165 crores have been availed from commercial banks.

(b) The total borrowings presently have gone upto Rs.3789.97 croresas against the delegated limit of Rs.4000 crores and therebyavailable balance is only RS.210.03crores to borrow further.

(c) The present proposal is submitted to the Board to enhancethe existing working capital borrowing limit from Rs.4000crores to Rs.SOOO crores in respect of short termloan/ overdraft/working capital requirement fromcommercial banks/Financial Institutions.

Board went through the proposal and observed that BESCOMhas tomeet the regular day-to-day expenditure. Besides, there is also anobligation for repayment of short term loans on the stipulated due dates.At present BESCOMis facing severe financial crunch due to blockage ofhuge revenue which is due from Govt. Departments/local bodies viz.,BBMP, BWSSB, ULB, RLB and other ESCOMsamounting to RS\ 3756.72

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- @l Bangalore Electricity Supply Company Limited_ aesco_ (Wholly owned Government of Karnataka Undertaking)

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crores. This huge arrears causing difficulty in managing the day-to-dayaffairs. Apart from this, back-up financial arrangement is utmost needed tomeet any contingent situation which may arise due to possible refusal ofcommercial banks to renew/extend the period/term of existing loans. Boardperused section 180(1)(c) of Companies Act 2013 and the powers of Boardto approve the limit for short term loans for working capital. After adetailed discussion Board considered the proposal and passed the followingresolutions:

"RESOLVED that, for reasons explained, in partialmodification of earlier resolutions passed by the Board, ManagingDirector/CFO & Director(Finance), BESCOM and GeneralManager(F&R), BESCOMbe and are hereby delegated the powersto borrow upto the limit of Rs.5000 crores(Rs. Five thousandcrores) for availing in the form of short term loans/workingcapital requirements(repayable within a span of threeyears)/ overdraft facility from commercial banks/FinancialInstitutions. "

"RESOLVED FURTHER that, the General Manager(F&R),BESCOMbe and is hereby authorized to take further all necessaryactions in the matter of borrowings, documentation andrepayments and to ensure that interest burden on such short termborrowing are not high and there should be a full justification inorder to allow the same in the tariff proposal by the regulator. "

SUBJECT NO.BOD 75/08 : Extension of the contract order No.01/2012-13 Dated: 29-12- 2012placed for Total RevenueManagement in Bangalore Rural AreaZone & Chitradurga Zone of MIs. NSoft (India)Services Pvt Ltd.,

The CFO& D(F), explained the following:

(1) The Contract order No. 01/2012-13 dtd 29.12.2012 was issued toM/s.N-Soft(India) Services Pvt. Ltd., for Total RevenueManagement(TRM) services for Bangalore Rural Area z1ne andChitradurga Zone by BESCOM. ~ 1,

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(2) The period of contract was two years which was in operation inCTAZ from 01-02-2013 to 31.01.2015 and in BRAZthe same wasexisting from 01.04.2013 to 31.03.2015. The said contract periodof two years was extendible by further period at the discretion ofBESCOM.

(3) Accordingly the contract was extended for a period of one yearwith effect from 01.02.2015 to 31.01.2016 for CTAZ and01.04.2015 to 31.03.2016 for BRAZ as per the approval of theBoard of BESCOMat its 66th meeting held on 20th November 2014.

(4) Further, Board at its 71st meeting held on 30.09.2015 the MD,BESCOM was authorized to submit the extension proposal toBoard only after inviting necessary fresh tender and directed thatuntil the finalization of new tender as per KTPP Act extensioncould be considered as an interim arrangement.

Board perused the following:(a) A fresh tender for web-based Total Revenue Management(TRM)

was floated in e-procurement platform vide Tender EnquiryNo.GM(Rev)/DGM(Rev)/BC22/5891/ 2015-16 dtd 28.10.2015 for acontract period of five years and extendible for further period ofthree years.

(b) On completing the necessary tender process Lor has been issuedto lone qualified bidder, M/s. N-Soft(India) Services Pvt. Ltd., videNo.GM(Rev)/ DGM(Rev)/ BC22/ 5891/ 2015-16/ Cys 22 dated15.2.2016. As per the terms of new tender, new contract orderwill come into effect only after the completion of successful pilotoperation for a period of two calendar months which willcommence from 01.03.2016 and if the pilot is successful, the newtender rate will come into force from 01.05.2016.

(c) In the meantime the existing contract is already expired inCTAZ area and going to expire on 31.03.2016 in BRAZarea. Hence the existing contract order need to beextended from 01.02.2016 to 30.04.2016 and from01.04.2016 to 30.04.2016 in the interest of both BESCOMand the consumers.

(d) The cost sheet of the proposed extendable services was alsoperused which is as under:

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1 Original Tender Rs 21.20 CroresCost

2 Cost towards additional installations Rs 00.94 CroresTransferred from RAPDRParea

3 Cost of Extension for one year from 01-02- Rs 12.50 Crores2015 to 31-01-2016 for CTAZ & 01-04-2015to 31-03-2016 for BRAZ

4 Cost towards proposed extension as per Rs 1.92 Crores51 No.(13)

5 Total Cost of the Project Rs.36.56 Crores

(e) The budget for the said service is availableat respectiveDivisionsunder revenueexpenditure headof account.

Boardwent through the proposaland felt that both in the interest ofrevenue of BESCOMas well as the better services to the consumers inbilling and collection, there is a necessity of extending the contract till30.04.2016 or till the successfulcompletionof pilot operation whichever islater. It was also observed that, the existing price under the contract isreasonableand there are no immediate alternative available in the marketto replacethe existing service provider during this small time span withoutfollowing the tender normsand required process.With regard to the pricesaccepted under new contract will be with effect from 01.05.2016SrLNagaraj, Director expressedthat price could have been still reduced.HoweverCFO& D(F) explainedthat lot of new scopehave been added inthe new contract and hence the tendered & negotiated new price ofRS.5.78 is justifiable one and the tenderer is not prepared to reducefurther. After a detailed discussion and debate Board considered theproposaland passedthe following resolutions:

"RESOLVEDthat, for the reasonsexplained, approval be andis hereby accorded to extend the contract period of the contractorder No.0112012-13 dtd 29.12.2012 placed on Mis. NSoft(India) Pvt. Ltd., towards Total RevenueManagement (TRM)for Sangalore Rural Area Zone and Chitradurga Zone of SESCOMat the rate of Rs.2.85 per month(Rupees two and Paisaeighty fiveonly per month) for each active installations for a further periodof the three months in CTAZarea from 01.02.2016 to 30.04.2016and for a further period of one month in BRAZ area from01.04.2016 to 30.04.2016 or till the successfulcompletion~Pilotoperation of new TRM services whichever is later ~ i~/ the

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condition that all existing terms & conditions remain unalteredand no extra cost to BESCOM."

"RESOLVEDFURTHER that, the CFO & D(F) and GM(Rev) beand is hereby authorized to enter into necessary agreement forthe extended period of contract within the ambit of legalprovisions. "SUBJECT NO.BOD 75/09 : Sanction of additional Meter Readers

for BMAZ area-reg.

The Managing Director apprised the Board that:(1) BESCOMis rendering services to the consumers on 84.53 lakhs

active installations out of total data base figure of 100.62 lakhsconsumers as on date. Out of total consumers, about 52.64%consumers are located at BMAZ area alone. Out of total RS.1135crores monthly revenue potential of the company, Rs.704 crorescomes from BMAZarea alone. On the other hand, out of 1958MUsof energy, 1018MUsof energy is consumed in BMAZarea only.

(2) The billing efficiency and realization of revenue depending onadequate quality manpower deployment proportionate to theconsumer base. The Company has not initiated any action so farto enhance the number of meter readers in proportion to growthof consumer base. This has created large gap between actualrequirement and present sanctioned strength.

(3) The actual requirement is calculated and placed before the Boardon scientific basis considering the present scenario.

(4) The process need to be taken up in the phased manner in theinterest of organizational development. Initially BMAZ could beconsidered for sanction of additional meter readers consideringthe present level of sale of energy and revenue realization rate.

Board perused the following:

(a) Manpower assessment report submitted by National ProductivityCouncil suggested the work load for Meter Readers in BMAZ areais 4120 installations per Meter Reader per month. This benchmarkis arrived at scientifically after conducting time and motion study,frequency analysis and standard work measurement technique.

1'\~~.'

'.'~\

\

18

·_tfl• BI!SCOM

(b)

(c)

(d)


(CIN- U04010KA20025GC030438)

In BMAZarea, there are 44.42 lakhs live installations(excludingHTpower installations of 40 HP & above, and LT7 installations). Asper benchmark/workload proposed by M/s.National ProductivityCouncil, 1078 meter readers are required to read the saidinstallations.Existing sanctioned strength, working and deficit numbersare as below:(A) Total Number of Installations in 8MAZ 44,42,274

(8)Workload per Meter Reader per month as 4120per MIs. NPCReport (In installations)

Required Meter Readers as per NPCReport(C) (in NOs.) 44,42,274 = 1078

4120

Present Sanctioned Strength(D) Meter Reader = 298 467

Junior Meter Reader = 169(E) Actual deficit (in Nos.) 611

(F)Part of the deficit has met by deploying 99Junior Assistants

(G) Net Deficit 512

(e)

It is proposedto sanction512 Meter Readers(actual deficit), afteradjusting deployment of Junior Assistantsto meter reading work,to BMAZarea by way of creation and to remove the outsourcedmanpower permanently. It is proposedto take up the recruitmentof these Meter Readers over a period of two financial years.However, redeployed Junior Assistants are also required to bereplacedby regular meter readers,but this processcould be takenup as & when vacancy arises due to promotion &retirement/transfer.The present proposal is submitted seeking the approval onthe following:(1) To create 512 posts of Meter Readers and deploy

them to BMAZarea.(2) To incur additional annual financial implication to the

extent of Rs.2S.23crores for operationaliza ionJOf theabove posts. 1/

! ,I ' ,

I

19


(CIN- U04010KA2002SGC030438)

(3) To authorize General Manager (A&HR) to issuenecessaryorders in this regard.

Board went through the proposal and observed that in the absence ofjob security, commitment & dedication, progress of company's works andquality cannot be expected from the outsourced meter readers. Further,the performance of outsourced meter readers as seen at present is notupto the desired level, due to lack of adequate skills & experience.Moreover, the billing activity is one of the important area of core activitiesof the company and advisable to be handled only by company's own staff.At this juncture SriJawaid Akhtar, Director expressed that certain nontechnical cadres can be merged to meter readers cadre and strength of thiscadre can be enhanced for meter reading by inducting multiskilledemployees for both meter reading and disconnections etc., so thatefficiency can be enhanced and productivity will also be higher with higherjob satisfaction to the employees. SrLNagraj, Director expressed that, thereis an urgent need to enhance the strength of meter readers since for along time the recruitment in this cadre is not made. The ManagingDirector expressed that for enhanced revenue realization,technological improvement need to be adopted in BESeOMalso asin many States like Maharashtra where they have already adoptedthe latest technology for meter readings either through installingRF based meters or suitable remotely readable technology. Boardnoted all these significant points. However further observed that, the costof the proposal is abnormally high to an extent of Rs.2S.23 crores perannum towards manpower cost which can be reduced by installing RFbased meters in Urban area with a reduced cost at an approximate cost ofRs.1200-1300j- per RF based meter. After a detailed discussion, the Boardadvised Managing Director to have a re-look into proposal toreduce the proposed numbers to 500/0 or less by installing RFbased meters or by adopting any other remotely readabletechnology. After a detailed discussion, the following resolutions werepassed in this context:

"RESOLVEDthat, for the reasons explained, approval be andis hereby accorded to create at minimum level not exceeding 50%of 512(not more than half of proposed) proposed posts of\ 'feterreaders now for BMAZ area and to have a re-/ook b" ~h~ :MD"

20 \\~\~\.\.))'-'\ \ \\ . i\,1;

.~.~':C·~MO Bangalore Electricity Supply Company Limited

_ (Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA2002SGC030438)

SESCOM for rest 50% of the posts in the angle of technologicaldevelopment and essentiality. "

"RESOLVED FURTHER that, the MD, SESCOM be and ishereby authorized to take necessary initiative for installation ofRF based meters or for adoption of any other alternative remotelyreadable technology to reduce the cost of manpower for meterreading function in BMAZ area. "

"RESOLVEDFURTHER that, the GM(A&HR) be and is herebyauthorized to take further actions to issue necessaryadministrative orders to take forward the process and to completein procuring approved manpower for meter reading. "

SUBJECTNO.BOD 75/10 : Recruitment Regulations for IT & SmartGrid Cadre

The Managing Director apprised the Board as below:(1) Board of BESCOMat its 69th meeting held on 25th July 2015 has

approved for creation of separate 'Information Technologyand Smart Grid' cadre for BESCOM.

(2) A Committee was constituted to frame the R&P Regulations for IT& Smart Grid cadre as below:(1) Managing Director, BESCOM(2) Director(Technical), BESCOM(3) Director(Finance), BESCOM(4) General Manager(A&HR), BESCOM(5) General Secretary, KEBEngineers

Association.(6) Deputy General Manager(Personnel),

KPTCL

ChairmanMemberMemberMember ConvenerMember

Member

(7) General Manager(Finance & MemberResources), BESCOM

(8) IT Advisor for BESCOM Member(Sri. Ramanathan. S)

(9) Expert Member(Sri Devaraju, Retired MemberDeputy Secretary, DPAR,GOK)

(3) The Committee which met on 9th December 2015, discussed andconcluded the outline of the proposed "Recruitme t land

21

l,/1I . :,,!,'oJ 1 j \ ~


(CIN- U04010KA2002SGC030438)

Promotion Regulations" as annexed to the agenda andsubmitted to the Board.

(4) These regulations shall be applicable for the recruitment of theofficers to the posts under "Information Technology & Smart Gridcadre" only. Upto the Asst. General Manager level, there will betwo separate streams called 'IT&CISO' and 'Smart Grid' cadre.

(5) Educational qualifications are standardized for each streamseparately adopting four methods of recruitment viz., by directrecruitment, by promotion, by transfer and by deputation.provision has also been made to introduce mandatory Kannadalanguage tests to come under general eligibility.

(6) In the case of appointment by transfer from KPTCL/ESCOMs,counting of past service, the existing pay, allowances andapplicable pensionary benefits 'will be protected. However therewill be no scope for change of cadre under BESCOMservice. Payallowances and service regulations will be regulated as per the"Employees Service Regulations of BESeOM"

Board perused the annexures and details which were submitted viz.,proceedings of the Committee held on 09.12.2015, draft :"Cadre &Recruitment Regulations-2016" in respect of IT & Smart Grid cadre andschedule showing promotion regulations/methods, cost sheet for the poststo be filled up by deputation in the cadre of Junior Engineer(Ele) andlineman.

Board went through the proposal and debated at length. It wasobserved from the annexures submitted that the Committee has not takeninto consideration many aspects of service matters such as completeorganization structure, roaster system, qualifications for handling combinedfunctions under IT and smart grid cadre, skill required to handle systemcomponents, electrical & electronic equipments under SCADAsystem etc.The Managing Director explained the complete staff pattern and eachactivity involved in discharging the duties under the system. Board furtherobserved that, from one of the service matter experts who has beenalready inducted in the Committee whose services/advise is not adequateand a replacement of said member, Sri. Devaraj, Rtd Deputy Secretary isneeded preferably by inducting another subject expert Sri. Ananth, RtdDeputy Secretary, DPAR.The CFO& Director(F) explained that the systemis dealingwith variousaspectswith~~whichtherewill be s,~Ole of

,,~

.~.fl.:c-o"'~ Bangalore Electricity Supply Company Limited

_. (Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA2002SGC030438)

each employee within the smart grid cadre. Hencethere should be goodclarity in fixing criteria, choosing right persons and in handling servicematters of this cadre Sri Jawaid Akhtar, Director further expressed thatthere should be multi skilled employeeswho are able to handle activitiesrelated to electrical, electronics and software domain. After a detaileddiscussion and debate the following resolutions were passed in thiscontext:

"RESOLVED that, for the reasons explained, the ManagingDirector, BESCOMbe and is hereby authorized to have are-lookinto the aspects of inducting a suitable service matter expert fromthe DPAR, Govt. of Karnataka, matter related to implementation& maintenance of reservations and roaster points in the caseswhere recruitment involves more than one employee, specific jobexperience, specific period of experience on the specific job to geteligibility for promotion and any other criteria & related servicematters and to re-submit the detailed proposal in the ensuingBoard meeting of SESCOMwith a detailed presentation to theBoard."

"RESOLVEDFURTHERthat, the GM(A&HR}, SESCOMbe andis hereby authorized to take all necessary action for furtherreview Ire-look of the presently submitted proposal withparticular reference to KCSR, KPTCL regulations and industrystandards in the matter of prescribing recruitment norms,framing regulations, relevant criteria for promotion, providingpromotional opportunities etc., inclusion of additional relevantpoints, if any, and to re-submit the proposal to the Board in theensuing meeting of Soard of Directors."

SUBlECT NO.BOD 75/11: Selection of IT Implementation Agencyfor Design, Development andImplementation of DistributionTransformer Tracking System (OTIS) inBESCOM- reg.

23


(CIN- U04010KA2002SGC030438)

Ref: (1) Subject No. 68/13 of 68th BODmeeting dtd 16.05.2015vide Inter OfficeNote no. 367-374dtd 20.06.2015

(2) GoK Circular no. EN 62 VSC 2015 Bangalore dtd05.10.2015

(3) CorporateOrder no. BESCOM/BC-31/19/2015-16/679dtd19.1.16

(4) Enq No. 1 to 13 dtd 26.10.2015, 14 to 24 dtd28.10.2015~25 to 36 dtd 29.10.2015& 38/05.12.2015

(5) Enquiryno. 37/18.11.2015for OTIS in BESCOM.(6) SubjectNo.CPC90/A04 dtd 17.02.2016(7) Proceedingof the CPCmeetingdtd 17.02.2016(8) Formationof TechnicalCommitteevide OMNo. 14358-62

dtd 20.02.2016(9) Replyto Audit remarks(10)Proceedingof the TechnicalCommitteemeeting held on

25.02.16The Managing Director apprised the Board as under:

(1) In order to have a proper tracking of distribution transformersmovement in the field from the point of issuingfrom store house,installation in the field, removal for repair and upto the reerrection at needy place, it is proposed to put in place a welldefined tracking system (Le."Design, development andimplementation of Distribution Transformer TrackingSystem")

(2) The system takes care of monitoring of day to day functions oftransformers through system alert, identifying location of failure,replacementof failed transformer, return or non-return to stores,buffer stock position and testing activities, in the interest ofspeedyrestorationof powersupply.

(3) At present, the existing, newly added and failed distributiontransformers are being tracked manually at the concerned subdivisions/Divisions/Circles and Zones. The repair of failedtransformers are being carriedout in the existing 49 Nos. minorrepair centres and 18 Nos. of major transformer repair centres atvarious locationsof BESCOM.

(4) The working of present /existing manual sys em are asbelow:

24"\

\

,.~ Bangalore Electricity Supply Company Limited. _ ~ (Wholly owned Government of KarnatakaUndertaking)

(CIN- U04010KA2002SGC030438)

(a) On eachfailure of DTRsthe docket No. are being obtained bythe respective section officer through Public GrievanceRedressalsystem(PGRS)in the purviewof GM(CR)section.

(b) The buffer stock of repaired good/new transformers arebeing maintained in 28 Divisionalstores and 46 transformerbanks.

(c) The Transformer Information Management System (TIMS)codes are allocated which are not properly identified at theDTCstructure in the field.

(d) No tracking of existing transformer life cycle from the stageof commissioningto the stageof scrap.

'" (e) About 40 to 45% of existing transformers in the field are nothaving nameplate details.

(f) Allocationsof new/repaired good transformers to the variousworks/ replacementsare not tracked.

(g) Tracking of newly procured transformers by respectiveCEE'sof Zone, SEE'sof Circle and EE'sof Division for total/partialturnkey works.

(h) There is no UniqueID to the distribution transformers.(i) Preventivemaintenanceof the distribution transformers are

not being made during the scheduled period. Consequentlythere is increasein transformer failure rate.

(j) The failed transformers which are lying in the field are notproperlymonitored to return to the stores for repairsto avoidloss of transformers, timely repair and to provide buffer

" stock.The following were perused by the Board. The

Director(Technical) explained the flow of activities of proposedsystem through the power point presentation.

(a) Presently BESCOM is having 2,28,800 Nos. of distributiontransformers and every year 8%-10% of transformers are beingadded to the network due to load enhancement and systemimprovements. The annual transformer failure rate is 7%-8% atpresent.

(b) In order to reduce 0 & M cost of distribution transformers, tocontrol its failure rate, to increasethe span of life and to achieveconsumersatisfaction, BESCOMneedsa "Distribution TITanformer

2S

~.E5CQM


(CIN- U04010KA2002SGC030438)

Tracking System (OTIS)". The OTIS shall support and track thecomplete life cycleof distribution transformers.ProposedDTIS willhave a web-basedapplicationwhich can be accessedat anytime,anywhere through any device including mobile phones by theauthorized users.The benefits that are going to be derivedon implementation of OTIS are as follows:(1) Efficiently monitoring, tracking and administering of

distribution transformers.(2) Maintaining complete data regarding lifecycle of distribution

transformers.(3) Proactively managing preventative and breakdown

maintenance activities and reducing the failure rate ofdistribution transformers.

(4) Tracking the failed, replaced,yet to be replacedtransformers.(5) Providing alerts and notifications during failure and

replacementsin caseof non-performanceand delays.(6) Providing reliable MIS reports and distribution transformers

failure analyticsfor decisionmakingby the Management.(7) Obtainingthe MIS reportsas per the requirementof BESCOM.

(c) The scope of the work covers the following:(1) Design, development and implementation of distribution

transformers tracking system application, generation ofunique IDs, TIMS etc., for a period of 7 months from thedate of DWAand maintenance/ application support periodfor two years.

(2) Creationof distribution transformersmasterdata.(3) Developmentof stainless steel plates of size 5"(L)X2"(W)X

1MM(T) and punching of Unique10 Nos.(4) Integration of OTIS with the BEseOM existing IT

applications like RAPORP, PGRS, enumeration of IPsets and OTCs on GIS, N-SOFT Total RevenueManagement and any other newly developedsoftware related to DTCs/DTRs.

Cd) The deliverables to BESeOM include the following:(1) Documents containing detailed requirement captured and

analysis including functional requirement, interfacespecifications,apPlicat~~nsecurityrequiremen\~z;rocess

\\\~~J\J


(CIN- U04010KA2002SGC030438)

workflows.(2) High level software design document including software

architecture design, logical and physical database design,sourcecode,administrativepasswords.

(3) Detailed Project Plan, detailed timelines for customizationand acceptancetesting of the modules.

(4) Detailedacceptancetesting plan, backup policy, test reports.(5) Training Plan,training manualsand literature(6) Useradministrationmanualsfor systemadministrators.(7) Operationalmanualfor user.(8) Security audit reports, escalation mechanism, exit

managementplan.(9) Monthly reportsduring operationsperiod.(10) Any other requirementsof BESeOMrelatedto DTIS.

(e) The commercials of the proposed system include submittingperformanceguarantee at 100/0 of amount put to tender valid for aperiodof 43 months from the date of LOljDWA

(f) Thetender hasbeeninvited asper stipulated guidelines.Thetechnical bid was openedon 19.12.2015and price bid wasopenedon 30.01.2016M/s.EnzenGlobalSolutionsPvt. Ltd.,is a lone bidder whose bid has shown the following costcomponents(originally quoted before CPC meeting andsubsequentrevision):

PRE-REVISED/COST SHEET

A. Hardware costSl Rate In Amount ServiceTAX+ VAT@ Total PriceN Particulars Rs In Rs Cess@ 14.5%

(inclusive of all0 14.5% Taxes) In Rs

1 Server 600128 1200256 0 174037.12 1374293.12

2Secure sockets Layer 19500 19500 2828 2827.5 25155.5(SSL)NetworkingEuqipments/cabiling

3 required to connect the 26000 26000 0 3770 29770servers to the datacenters set-upInstallation and

4 Commissioning 61000 61000 8845 3355 73200(lurnpsurn)

Total Hardware cost 706628 1306756 11673 183989.62 15?2418.62

27 d~

\


(CIN- U04010KA2002SGC030438)

B. Welding of SS Unique 10 Plate & Painting of TIMs code on DTCStructureService TAX VAT@

Total PriceSI Particulars

Rate In Amount In Rs + Cess@ (inclusive of allNo. Rs 14.5%

14.5% Taxes) In Rs

Cost for Design,94.00 21507200 0 3118544 24625744

Development and1 Installation, i.e. welding

of stainless steel name 379.00 86715200 12573704 0 99288904plate on DTR

Total Cost 473.00 108222400 12573704 3118544 123914648

Cost of painting of 0.00 0 0 0 0

2 location ID/TIMS ID ondTC structure 71.00 16244800 2355496 0 18600296

Total Cost 71.00 16244800 2355496 0 18600296

Total cost for welding ofunique 10 and painting of 544.00 124467200 14929200 3118544 142514944

TIMS code

C. Soft ware cost

SI Service TAXTotal Price

N Particulars Rate In Rs Amount In + Cess@ VAT@ (inclusive ofRs 5.5% all Taxes) In

o. 14.5% Rs

1Cost of DTTS applications, including 8363000 8363000 1212635 459965 10035600Enterprises license

2SQL server standared Database + 51892 103784 15048.68 5708.12 124540.8Antivirus

3 Windows 2012 server standard 38195 114586 16614.97 6302.23 137503.2

4 MS-SQLCAL 12311 123110 17850.95 6771.05 147732

5 MS office License 22000 22000 3190 1210 26400

6 Public IP 5000 5000 725 275 6000

DTTs Enancement andImplementation as per BESCOMTOR:Customisation, enhancement andTesting, work flow development,Mobile App Development, Data base

7Development, Integration with 4872976 4872976 706582 0 5579558external systems, Environmentpreparation, set up development,Data Collection, Data clensing andMigration, Training, Integration,Go-live Activities, ProjectManagement, Travel, Boarding &loading

Total Software cost 13365374 13604456 1972646 480231 16057334

28\~...~.\/..r~....\,~\\~~\\ \ \ \\. 'Ii \\ i

aBII!SCOM


(CIN- U04010KA2002SGC030438)

D. Maintenance & Application support costService TAX

Total Price-51 Amount In VAT@ (inclusiveNo Particulars Rate In Rs Rs + Cess@ 5.5% of all

14.5% Taxes)

Maintainance & Application suport for 2years (Technical, Functional, Trainingand Project Management) including:- Automated incident tracking,Monitoring and reporting tool- Tech support for a period of threeyears

1 - Project Manager - tech lead, Tech 21721000 21721000 3149545 1194655 26065200

support team- One hardware resource at BESCOMdata center for 2 years- 7 resoruces and BESCOMoffice for 6months- Travel, meeting, reviews, boardingcommunication etc.,

Total Cost for Application Support 21721000 21721000 3149545 1194655 26065200

Total Project Cost(originally quoted 35793546 161099412 20063064 4977420 186139896before revision)

(g) Presentproposal is submitted seekingthe approvalas under:(1) To take up the project by Selection of IT

Implementation Agency for Design, Development andImplementation of Distribution Transformer TrackingSystem (DITS) in BESCOM as a pilot withimplementation period of four months duration inKanakapura Division by lone Ll bidder M/s EnzenGlobal Solutions Pvt. Ltd. on the rate quoted in therevised price sheet for Rs. 17,21,62,095/-

(2) Entire rollout of the project of BESCOMwithin twomonths after successful pilot implementation.

(3) To authorized CGM(OP) to issue LOI/DWA on M/sEnzen Global Solutions Pvt. Ltd. for Rs.17,21,62,095/- and to enter into contract.

(4) To allocate the Capital budget of Rs. 17,21,62,095/by CGM(CA).

Board went through the proposal and debated at length. Boardperused the Central Purchase Committee decisions and structure oftechnical committee comprisingthe following officers:

29


(CIN- U04010KA2002SGC030438)

(a) Director(Tech), BESCOM : Chairman(b) Sri Rajasimha, Technical : Member

Advisor to BESCOM(c) Prof. & HOD, Mechanical : Member

Eng. Dept., UVCE,Bengaluru

(d) Chief General Manager(Op) : MemberBESCOM

(e) Dy. General Manager(op) : ConvenerBESCOM

Further it was the very serious observation of the Board that,presently many number of transformers are lying in various locationswithout tracking or watching the movement from one location to anotherlocation, from store house to work spot, from repair centre to storehouseetc. The Board took serious view of these irregularities causing withouthaving proper and adequate control over movement of transformers whichare having huge assets value in the books of accounts of the Company. Inorder to have proper and adequate control over large number ofdistribution transformers, Board felt that it is necessary to establishproposed web based mechanism "Distribution Transformers TrackingSystem" which will achieve the objectives of Government of Karnatakawhich has indicated in the circular EN 62jVSC 2015 dtd 05.10.2015 forproper monitoring and preventing of day-to-day failures through alertswith escalation, replacements, tracking failed transformers not returned tostore, monitoring transformers repair centre, allocation of transformers,buffer stock maintenance & testing activities speedy restoration of powersupply to the satisfaction of consumers and adherence to KERC norms.Board further observed the cost components, and scope of work forimplementation of the proposed mechanism, time span requiredparticularly for rolling out across BESCOMand period of support serviceetc. After a lengthy debate it was found it is appropriate to take up on pilotimplementation basis. After a detailed discussion, the Board considered theproposal. However to take up the proposed project, first on pilot basis onlyand full pledged implementation shall be only after successfulimplementation of pilot project. The following resolutions we e ~a..ssei.d inthe context:

~:\~... \J' \

30

.~.fl.:c--o"_~ Bangalore Electricity Supply Company Limited

-- (Wholly owned Government of KarnatakaUndertaking)(CIN- U04010KA2002SGC030438)

"RESOLVEDthat, for the reasons explained, approval be andis hereby accorded to the MD,BESCOMto take up the project of ITimplementation - "design, development and implementation ofdistribution transformer tracking system" by awarding work tothe lone L1 qualified bidder M/s. Enzen Global Solutions PrivateLtd., Theapproval is subject to satisfying the following:

(1) The revised rate quoted against enquiry No.BESCOM/CGM(Op)/DGM(Op1)/AGM(Op2)/m4/ 37/2015-16 dtd 16.11.2015 shall be Rs.17,21,62,095/-(Rupeesseventeen crores twenty one lakhs sixty two thousandninety five rupees only) being the revisedprice sheet.

(2) The contract period for pilot implementation shall be notmore than four months from the date of LOI/DWA. Rollingout and full pledge implementation shall be acrossBESCOMonly after successful implementation of the pilotproject selected i.e., KanakapuraDivision.

(3) Rolling out of the project to entire BESCOMshall be withinnext three months from successful implementation of pilotproject @ KanakapuraDivision.

(4) The CGM(Op) shall issue LOI/DWA and enter intonecessary contract with M/s. Enzen Global solutions Pvt.Ltd., as per tender terms & conditions and corporatenorms duly fixing target time for each activity involved inimplementation from the stage of creation of data base tothe stage of completion and upto support serviceperiod.

(5) The CGM(CA)shall allocate required capital expenditurebudget for the FY 2015-16 for pilot implementation andfurther allocation during the FY2016-17 capex budget onthe recommendation of CGM(Op).

(6) The CGM(Op), BESCOM shall monitor the completeimplementation of pilot project and monthly report shallbe submitted to the MD through D(T) from the startingstage till the successful completion of pilot projectselected atKanakapuraDivision.

(7) In case, the tenderer could not implement the pilot projectsuccessfully, the MD is authorized to cancel the tenderprocessed& finalized. Tothat effect necessaryclauseshallbe built in the agreement.

31

~IISESCONl


(CIN- U04010KA2002SGC030438)

(8) Immediately, on successful implementation of pilotproject of Kanakapura Division, the certification oftechnical Committeealready constituted for the purposeshall be obtained before rolling out for full pledgedimplementationacrossBESCOM.

SUBJECTNO.BOD75/12 : Shifting of existing single phase energymeters from inside to outside theconsumer premises and fixing of SMCBox with accessories on partial turnkeybasis under Rate Contract for two yearsin BESCOMjurisdiction.

The Managing Director apprised as below:(1) As per Central Electricity Authority Regulations 2010 and

subsequent amendments thereon provided for re-Iocation ofenergymeters for their accessibilityin the consumerpremises.

(2) The consumersenergymeterswhich are already in serviceneed tobe re-installed at easily accessiblelocations for reading, testing,commissioningand maintenance. The location of installations ofmeters need to be fixed without inconvenience either to theconsumersor to the utility.

(3) The Divisionwise tendersare invited on partial turnkey basisunderrate contract for shifting of single phase energy meters to theconvenient locationat the consumerspremisesalong with fixing ofmeter protection box provided by BESCOM.The tender details areas below:

SI Tender No. Name of the Qtyin Amount put toNo. division Nos. tender1 BESCOM/BCP-897/2015-16 Nelamangala 36008 41867360.552 BESCOM/BCP-898/2015-16 Yelahanka 26660 30998067.033 BESCOM/BCP-899/2015-16 Chitradurga 67830 78868654.204 BESCOM/BCP-900/2015-16 Davanagere 71240 82833597.605 BESCOM/BCP-901/2015-16 Harihara 35184 40909844.166 BESCOM/BCP-902/2015-16 Hiriyuru 24926 28982747.93

7 BESCOM/BCP-903/2015-16 Chikkaballapura 42674 49619057.45& Chinthamani

8 BESCOM/BCP-904/2015-16 KGF& Kolar 35938 41786259.449 BESCOM/BCP-905/2015-16 Chandapura 37131 43173698.94

10 BESCOM/BCP-906/2015-16 Kanakapura & 26774 31131491.45Ramanaqar r-

32

",

" \

lfi Bangalore Electricity Supply Company Limited.... COM (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)

11 BESCOM/BCP-907/2015-16 Madhugiri 53709 62449602.66

12 BESCOM/ BCP-908/2015-16 Tiptur 45530 52938970.83

13 BESCOM/BCP-909/2015-16 Tumkur 48207 56052207.18

The following were apprised to the Board:(a) Tenders were invited on e-procurement portal and the notification

was published in the leading news papers of both KannadaandEnglishi.e., Vijayavani and The Hindu on 08.11.2015.Also copy ofNIT was sent to Tender Bulletin Officer, Governmentof Karnataka.The details of notification inviting tender, instruction to bidders,general terms & conditions of contract, special conditions ofcontract, technical specifications, techno- commercial sheets andPrice schedules of the subject tender was made available onwebsite https:/leproc.karnatak.gov.in for the biddersto quote theirbids on e-procurementmode.

(b) The bidders as noted below are participated and techno-commercial bids of the following participated bidderswere openedon 21.12.2015

MIs.MIs.

MIs. RMC MIs. Karisiddesh

51. Tender No. DivisionQtyin MIs. Spectrum Rajashree Switch Santhosh wara

No.Nos. Consultants Concrete gears Ltd, Electricals Concrete

Products, products.

1 BCP-897 Nelamangala 36008 'II 'II - - -

2 BCP-898 Yelahanka 26660 'II - 'II - 'II

3 BCP-899 Chitradurga 67830 'II - - - 'II

4 BCP-900 Davanagere 71240 - - 'II - 'II

5 BCP-901 Harihara 35184 'II - - 'II -

-" 6 BCP-902 Hiriyur 24926 'II - - - 'II

7 BCP-903 Chickballapura & 42674 - - 'II - 'II

Chinthamani

8 BCP-904 KGF& Kolar 35938 'II - - 'II -

9 BCP-905 Chandapura 37131 'II - - - 'II

10 BCP-906 Kanakapura & 26774 'II - 'II - 'II

Ramnagara

11 BCP-907 Madhugiri 53709 'II 'II - - -

12 BCP-908 Tiptur 45530 'II 'II - - -

13 BCP-909 Tumkur 48207 'II 'II - - -

33

(c) The price evaluation is made and details ofrespectiveL1 biddersare as noted below:


(CIN- U04010KA2002SGC030438)51.

Tender No. Division QtyinFirms name Total amount

RankNo. Nos. quoted in Rs.Mis. Rajashree Concrete

50303176.00 L11 BCP-897 Nelamangala 36008 Products,

Mis. Spectrum Consultants 50555232.00 L2Mis. RMCSwitch gears Ltd, 36950760.00 L1Mis. Karisiddeshwara

37350660.00 L22 BCP-898 Yelahanka 26660 Concrete products.

Mis. Spectrum Consultants 37457300.00 L3Mis. Karisiddeshwara

93741060.00 L13 BCP-899 Chitradurga 67830 Concrete products.

Mis. Spectrum Consultants 95504640.00 L2

Mis. RMCSwitch gears Ltd;98738640.00 L1

4 BCP-900 Davanagere 71240Mis. KarisiddeshwaraConcrete products. 99736000.00 L2

5 BCP-901 Harihara 35184Mis. Santhosh Electricals 49011312.00 L1Mis. Spectrum Consultants 49961280.00 L2Mis. Spectrum Consultants 34273250.00 L1

6 BCP-902 Hiriyur 24926 Mis. KarisiddeshwaraConcrete products. 35045956.00 L2

Chickballapura & Mis. RMCSwitch gears Ltd, 59146164.00 L17 BCP-903 42674Chinthamani Mis. Karisiddeshwara

Concrete products 59828948.00 L2

8 BCP-904 KGF& Kolar 35938Mis. Santhosh Electricals 50061634.00 L1Mis. Spectrum Consultants 50816332.00 L2Mis. Karisiddeshwara

9 BCP-905 Chandapura 37131 Concrete products. 51315042.00 L1

Mis. Spectrum Consultants 52317579.00 L2Mis. RMCSwitch gears Ltd, 37108764.00 L1

10 BCP-906 Kanakapura &26774 Mis. Karisiddeshwara

Ramnagara Concrete products 37751340.00 L2

Mis. Spectrum Consultants 37885210.00 L3Mis. Rajashree Concrete

72775695.0011 BCP-907 Madhugiri 53709 Products, L1

Mis. Spectrum Consultants 73849875.00 L2Mis. Spectrum Consultants 62603750.00 L112 BCP-908 Tiptur 45530 Mis. Rajashree ConcreteProducts, 63969650.00 L2

Mis. Spectrum Consultants 66284625.00 L113 BCP-909 Tumkur 48207 Mis. Rajashree ConcreteProducts, 68212905.00 L2

\34

~.eSCOM

Bangalore Electricity Supply Company Limited(Wholly owned Government of KarnatakaUndertaking)

(CIN- U04010KA20025GC030438)

% variationAmount as per

L1bidder quotedw.r.t CSR- % variation w.r.t

- Name of the L1 Common SR-2014-15 2014-15 BESCOMDWAEnquiry No. Tendered Amount All

bidder including loading including dtd.20.10.2014 ofQuantity in Nos. inclusive in Rs.

factors in Rs. loading SEEBRCfactors

BESCOM/BCP-897I Mis. Rajashree 360082015-161 Nelamangala

Concrete 35899976.00 50303176.00 40.12% 34.85%Products,

BESCOM/BCP-8982015- Mis. RMCSwitch 26660161 Yelahanka gears Ltd,

26580020.00 36950760.00 39.02% 33.78%

Mis.

BESCOM/BCP-8992015-Karisiddeshwara

16/ ChitradurgaConcrete 67830 67626510.00 93741060.00 38.62% 33.40%Products

~rnM P-9002015- M/s.RMC swith16/Davanagere GearsLtd

71240 71026280.00 98738640.00 39.02% 33.78%

BESCOM/BCP-9012015- Mis. Santhosh 35184 35078448.00 49011312.00 39.72% 34.46%16/ Harihara Electricals

BESCOM/BCP-9022015-M/s. Spectrum

16/ HiriyurConsultants 24926 24851222.00 34273250.00 37.91% 32.72%

BESCOM/BCP-9032015- M/s.RMC swith16/ Chickballapura& GearsLtd 42674 42545978.00 59146164.00 39.02% 33.78%

Chinthamani

BESCOM/BCP-904/2015-Mis. Santhosh

16/KGF& KolarElectricals 35938 35830186.00 50061634.00 39.72% 34.46%

Mis.BESCOM/BCP-905/2015- Karisiddeshwara 37131 37019607.00 51315042.00 38.62% 33.40%16/ Chandapura Concrete

~~P-906/ 2015-

Products

M/s.RMC swith16/ Kanakapura& GearsLtd

26774 26693678.00 37108764.00 39.02% 33.78%

Ramanagara

BESCOM/BCP-90712015-M/s. RajashreeConcrete 53709 53547873.00 72775695.00 35.91% 30.79%

161 Madhugiri Products,

BESCOM/BCP-908/2015- M/s. Spectrum 45530 45393410.00 62603750.00 37.91% 32.72%161Tiptur Consultants

BESCOM/BCP-909/2015- M/s. Spectrum 48207 48062379.00 66284625.00 37.91% 32.72%161 Tumkur Consultants

(d) The Tender Scrutiny Committee meeting was held on 30.12.2015.The committee recommended' all the participated bidders againsteach tender as techno-commercially responsive. The pric11 ids of

35

.' .


(CIN- U04010KA2002SGC030438)

all the participated and technically qualified bidders were openedon 14.01.2016 as detailed below:

51. Tender No. DivisionQtyin Firms name

Total amount RankNo. Nos. quoted in Rs.

Mis. Rajashree Concrete 50303176.00 L1Products,

1 BCP-897 Nelamangala 36008 Mis. SpectrumConsultants

50555232.00 L2

Mis. RMCSwitch gears Ltd, 36950760.00 L1

Mis. Karisiddeshwara 37350660.00 L22 BCP-898 Yelahanka 26660 Concrete products.

Mis. Spectrum 37457300.00 L3ConsultantsMis. Karisiddeshwara 93741060.00 L1

3 BCP-899 Chitradurga 67830Concrete products.Mis. Spectrum 95504640.00 L2ConsultantsMis. RMCSwitch gears L1

4 BCP-900 Davanagere 71240Ltd, 98738640.00Mis. KarisiddeshwaraConcrete products.

99736000.00 L2

Mis. Santhosh Electricals 49011312.00 L1

5 BCP-901 Harihara 35184 Mis. SpectrumConsultants

49961280.00 L2

Mis. Spectrum 34273250.00Consultants

L1

6 BCP-902 Hiriyur 24926 Mis. KarisiddeshwaraConcrete products.

35045956.00 L2

Mis. RMCSwitch gears 59146164.00 L1

7 BCP-903Chickballapura & 42674

Ltd,Chinthamani Mis. Karisiddeshwara

Concrete products59828948.00 L2

Mis. Santhosh Electricals 50061634.00 L1

8 BCP-904 KGF& Kolar 35938 Mis. SpectrumConsultants

50816332.00 L2

Mis. Karisiddeshwara 51315042.00Concrete products.

L1

9 BCP-905 Chandapura 37131Mis. Spectrum 52317579.00 L2ConsultantsMis. RMCSwitch gears 37108764.00 L1Ltd,

10 BCP-906Kanakapura & 26774

Mis. KarisiddeshwaraRamnagara Concrete products

37751340.00 L2

Mis. Spectrum 37885210.00 L3ConsultantsMis. Rajashree Concrete 72775695.00 L1

11 BCP-907 Madhugiri 53709Products,Mis. Spectrum 73849875.00 L2ConsultantsMis. Spectrum 62603750.00Consultants

L1

12 BCP-908 Tiptur 45530 Mis. Rajashree ConcreteProducts,

63969650.00 L2r-; t-;

36 \ \

•

rli'itw..I.I!SCOM


(CIN- U04010KA2002SGC030438)

Mis. Spectrum66284625.00 L1

13 BCP-909 Tumkur 48207Consultants

- Mis. Rajashree ConcreteProducts, 68212905.00 L2

% variationAmount as per

L1bidder quoted w.r.t CSR- % variation w.r.t

Name of the L1 Tendered Common SR-2014-15 Amount All 2014-15 BESCOMDWAEnquiry No.

bidder Quantity in Nos. including loadinginclusive in Rs. including dtd.20.10.2014 of

factors in Rs. loading SEEBRCfactors

BESCOM/BCP-897I Mis. Rajashree36008

2015-16/ Nelamangala Concrete 35899976.00 50303176.00 40.12% 34.85%Products,

BESCOM/BCP-8982015- M/s. RMCSwitch 2666016/ Yelahanka gears Ltd, 26580020.00 36950760.00 39.02% 33.78%

M/s._COM/BCP-899 2015- Karisiddeshwara

67830 38.62%Chitradurga Concrete 67626510.00 93741060.00 33.40%

Products

BESCOM/BCP-9002015- M/s.RMC swith71240 71026280.00 98738640.00 39.02% 33.78%

16/ Davanagere GearsLtd

BESCOM/BCP-9012015- M/s. Santhosh35184 35078448.00 49011312.00 39.72% 34.46%16/ Harihara Electricals

BESCOM/BCP-9022015- M/s. Spectrum

16/ Hiriyur Consultants 24926 24851222.00 34273250.00 37.91% 32.72%

BESCOM/BCP-9032015- M/s.RMC swith16/ Chickballapura & GearsLtd 42674 42545978.00 59146164.00 39.02% 33.78%Chinthamani

BESCOM/BCP-904/2015-M/s. Santhosh

16/KGF& KolarElectricals 35938 35830186.00 50061634.00 39.72% 34.46%

Mis.BESCOM/BCP-905/2015- Karisiddeshwara

37131 37019607.00 51315042.00 38.62% 33.40%__ Chandapura Concrete

Products

BESCOM/BCP-906/2015- M/s.RMC swith16/ Kanakapura& GearsLtd 26774 26693678.00 37108764.00 39.02% 33.78%Ramanagara

BESCOM/BCP-907/2015-M/s. RajashreeConcrete 53709 53547873.00 72775695.00 35.91% 30.79%

16/ Madhugiri Products,

BESCOM/BCP-908/2015- M/s. Spectrum45530 45393410.00 62603750.00 37.91% 32.72%

16/ Tiptur Consultants

BESCOM/BCP-909/2015- M/s. Spectrum 48207 48062379.00 66284625.00 37.91% 32.72%16/ Tumkur Consultants

(e) Schedule of payment is prescribed for 100% payment for bothsupply and errection, on certification by the section offic ,sub-

37

,


(CIN- U04010KA2002SGC030438)

divisional officer with counter signature by their respective EEs.The proposal is audited by the Internal Audit. The REC hassanctioned loan of Rs.22.76 crores for shifting of meters inTumkur, BRC,Davanagere and Kolar Circles for 40500 Nos. 109889Nos. 133139 Nos. and 92312 Nos. respectively. Further, thesecircles have already utilized some portion of the amount for shiftingof meters. Hence for the balance, the provision for the budget is tobe made in the ensuing FY 2016-17.

(f) The Director(Technical) informed the Board that subjectwas placed before 90th Central Purchase Committeemeeting held on 17.02.2016. The Committee after adetailed discussion& debate directed the GM(Proc) to resubmit the proposal to CPC. However, subsequentlyGM(Proc)justified the situation to submit the proposal to75th Board of Directors meeting seeking approval of theBoard. Accordingly the Chairman of the Central PurchaseCommittee took decision to place the proposal before theBoard after attending all the observations made by theCommitteeat so= CPCmeeting.

(g) Accordingly the subject is placed seeking the approval of the Boardto award the work to respective L1 bidders.

Board went through the proposal in detail, discussed and debated.Board observed that though it appears five bidders responded andqualified, in actual it is only two bidders for total 13 packages i.e.M/s.Santosh Electricals and M/s.Spectrum Consultants. The rest are jointventure partners. Moreover, the other participants do not qualifytechnically and individually. The basic premise of secrecy in bidding hasbeen violated since same firm is JV partner in more than one bid. Thisaspect was clearly observed and Board felt that the same is notappropriate. MD expressed that possibility can be explored to get this workdone by our own staff without entrusting to the outside agencies. Howeveron further discussion it was found it is not feasible under the presentsituation, quantum of work involved, and skill required. Sri. Jawaid Akhtar,Director expressed that technical and financial parameters need to belooked into thoroughly before bringing the subject to the Board. Byallowing joint venture, without fixing the technical and financial parametersappropriately, the process of tender vitiates the standards and, norms. On..\;\

38 \\-:~ \'\~" ",", '\

\"~ \'\,.\ .,

•Bangalore Electricity Supply Company Limited

(Wholly owned Government of KarnatakaUndertaking)(CIN- U04010KA2002SGC030438)

observingall these aspects,BoardDROPPEDthe entire tender processofproposed subject and advised Director(Technical)to revert back to Boardwith fresh proposal after adhering to the proper technical parameters,provisions of KTPPAct 1999 and tender norms. The following resolutionswere passedin this context:

"RESOLVEDthat, for the reasons explained, the presententire tenderprocessbeandis herebyDROPPED"

"RESOLVED that, for the reasons explained, D(T} andGM(Proc}be and are hereby authorized to submit the freshproposal to the ensuingBoardmeetingsubject to satisfying the

f\ following:(1) Freshtenderprocess(re-tenderingprocess}shall be taken

up as the present tender is not fit for approval on bothtechnicalandfinancialparameters.

(2) Adequate technical scrutiny shall be made by theGM(Proc}properly before submitting the proposal to theBoard.

(3) Fresh tenders shall be called in three to four lotsmaximumby fixing approprIatetenderterms& conditions.

(4) Preferablyjoint venturepartnershipshall not be allowedin the tenders. If allowed, the sameJoint Venturefirmshould not be permitted to participate in more than onelot.

(5) Notmorethan two lots shallbeallowedto eachL1bidder.(6) To participate in each tender, the tenderer should be

financiallycapable.(7) One tender should not have different joint venture

partners."SUBlECT NO.BOD 75/AOl : Formation of Pension Cell in BESCOM

~~BeSCOM

The CGM(F&C) apprised the Board as below:

(1) Board of Directors of KPTCLat 83rd Meeting held on 29thSeptember 2012 has accorded its approval to amend KEBEmployees Service (Amendment) Regulations 2012, authorizingFinancial Advisers of ESCOMSto sanction and issue PensionPayment Orders in respect o:gC& Dgroup employees ffjective

J "

•Bangalore Electricity Supply Company Limited

(Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA20025GC030438)

ESCOMs including the employees of KPTCL in the respectiveESCOM jurisdiction vide order No. KPTCL/ FA(A&R)/ KCO-1/39729/ 12-13 dated 05.11.2012.

(2) BESCOM in its Order No. BESCOM/ BC-31/ 3339/ 2012-2013dated 04/12/2012, sanctioned the staffcreating Pension Section w.eJ from 01.12.2012 at BESCOM,Corporate Office ,for settlement of Pension of C & D groupemployees subject to ratification of Board.

(3) Agenda for ratification of said sanction of staff was placed beforethe se= Board Meeting and the proposal was rejected and statedthat by the existing staff the Pension Section should be managed".Consequently there are no sanctioned posts in the Pension Sectionat present. At present the Pension Section is managed with onlyone Assistant General Manager(F&C), two Assistants and oneDaftary with the minimum staff strength.

(4) BESCOMconsists of 8 districts and geographically vast area andnumber of employees are more when compared to other ESCOMS.Moreover, Bangalore as Head Quarters, BESCOMand KPTCLarehaving more number of C & D group of employees. Approximately,40 to 50 Pension cases are to be processed and authorized everymonth consequent to superannuation/ voluntary retirement/ deathof employees. Sanction of Death cum Retirement Gratuity is alsoone of the functions of the CM(F&C) in BESCOM.

(5) Other functions include the following:(a) Settlement of Pension and family Pension.(b) Maintenance of Pension account and related records.(c) Revision of Pensionary benefits from time to time.(d) . Verification of Pay fixation, leave account etc., availed in the

entire service of the employee.(e) Verification and acceptance of Voluntary retirement

proposals.(f) Co-ordination with funds section for getting release of funds.(g) Submission of records /returns/reconciliation with the records

of KPTCLPensionTrust.(h) Submission of records /returns/reconciliation of NDCP

Scheme.(i) Disclosure of information under RTI ACT-2005 as and when

requested.40

\ ("\' \ \\.\\\~... \\'\\" ,\ \\~ ',

.. \~\

..•.~

..

(a)

(b)

(c)


(CIN- U04010KA20025GC030438)

Board perused the different segments of pension section and theexisting staff working pattern and duties involved under eachsegment viz., Newly Defined Contributary Pension Cell, EmployeesPension Cell and PensionTrust.Board further perused the present proposal submitted to theBoard seeking the approval for sanction of adequate staff strengthfor different job profile as under:(1) Staff sanction for regular sanction of Pension and DCRGfor

all C & D employees of BESCOMand KPTCL(a) Assistant General Manager (F & C)- 01 post.(b) Manager (F & C)- 01 post.(c) Assistant -04 posts.(d) Daftary-01 post.

(2) Staff sanction for monitoring/inspection of NDCPScheme forall employees appointed on or after 01.04.2006(a) Assistant General Manager (F & C)- 01 post.(b) Assistant -01 post.

(3) Staff sanction for Pension Trust for Consolidation/reconciliation of records in respect of all employeesappointed prior to 01.04.2006.(a) Assistant General Manager (F & C)- 01 post.(b) Senior Assistant -02 posts.

(4) Sanction of one post of Dy. General Manager foroverall supervision of all the segments underCGM(F&C).

Board observed the details furnished with regard to PensionSection activities which include:(a) Authorization and sanction of Pension/DCRG/Commutation

and Family Pension.Maintenance of Pension account and Records.Revision of Pensionary Benefits.Verification and acceptance of Voluntary retirementproposals.

(e) Co-ordination with funds section for release of funds forpayment of Pensionary benefits.

Cf) Disclosure of information under RTI Act 2005.

(b)Cc)(d)

41

f\I:

. ,


(CIN- U04010KA2002SGC030438)

(d) Board further noted that the Pension Trust functions also includethe following for those personnel appointed on or after01.04.2006:(1) Periodical inspection of NDCPSrecords in Division Offices.(2) Consolidation/Verification of NDCP Scheme monthly

statements.(3) Reconciliation of records/returns of NDCPScheme.

Board went through the proposal. Further perused theannexures submitted and the orders which were issued in thepast with regard to pension section/pension Trust structure andrelated issues of settlement of claims

(1) KPTCL/FA(A&R)/KCO-01/39729/12-13 dated 05.11.2012 '-'(2) BESCOM/BC31/3339/2012-13 dated 04.12.2012(3) BESCOM/BC31/3339(2)/2012-13/24 dated 05.04.2013(4) BESCOM/BC31/2585/2014-15 dated 27.06.2014(5) KPTCL/PA(A&R)/KCO-01/39738/12-13 dated 17.11.2012(6) KEPGT/PG-11/2013-14/611-16 dated 23.08.2013(7) BESCOM/BC31/3339/2012-13/251 dated 14.07.2015

•

Board further observed that:

(1) The essential minimum required operating staff shall be providedto CGM(F&C) for carrying out his functions effectively instead ofsupervisory officers since BESCOM has not yet started anyactivities of pension payments to its own employees who arecovered under NDCPScheme.At this point of time authorization and Payment of pension inBESCOMfor KPTCLemployees who are on deputation in BESCOMis not legally correct in the present context since the employer/appointing authority is KPTCL and these two entities areindependent in their existence under the Companies Act.

(3) The proposed cost for creation of new posts is abnormally highand needs re-look by the CFO & D(F). Cost implication is high ifthe proposal is considered and approved which is Rs.59.37 lakhsannually as an additional cost.Board felt that MD may take necessary actions for creation ofessential minimum posts of operating staff at reason bfe'1evel\\\ '\

\~\;/- \\~ ,\' \ \'\\ ~

(2)

(4)

42

·.Bangalore Electricity Supply Company Limited

(Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA200_2SGC030438)

keeping in view the minimum requirement to cope up with theexisting work load of CGM(F&C).

(5) Amendment if any required to the existing orders shall beproposed by the GM(A&HR), BESeOM in consonance oflegal frame work since in the eyes of law, takingdisciplinary actions etc on KPTCL employees in BESCOM isnot valid and hence legal provisions should be looked intobefore handling service matters related to KPTCLemployees who are on deputation in BESeOM.

(6) SE(E) KPTCLshall be the appointing and disciplinary authority forKPTCLemployees who are working on Deputation in BESCOMandnot the SE(E) 0 & M Circle of BESCOM.To this extent amendmentis immediately required to be proposed by the GM (A&HR) suitablyand be communicated to KPTCL.

(7) Till proper mechanism is established in BESCOM, on adhocbasis required minimum staff to be provided to CGM (F&C)based on workload currently existing.

After a detailed discussion on the above prevailing significant points,Board passed the following resolutions in this context:

"RESOLVED that, approval be and is hereby accordedauthorizing MD, BESCOM to create essentially required minimumnumber of posts on adhoc basis based on actual workloadcurrently handling by CGM(F&C) and on the recommendation ofthe CFO& D(F) keeping in view the minimum additional financialimplications and related legal aspects on service regulations andpayment of pension and retirement benefits to the employees. "

"RESOLVEDFURTHER that, the GM(A&HR) be and is herebydirected to take up the issues with KPTCL within the legalframework for amendment to the existing orders ofKPTCL/BESCOM in the matter of disciplinary action, pensionauthorization & payments, working of pension trust & otherservice related aspects in BESCOM and to issue necessaryadministrative orders thereon in the light of the directions issuedfrom the Additional Chief Secretary, Dept. of Energy, Govt. ofKarnataka vide No.EN 124/EE8 2015 dtd 28.10.2015 and toensure complete implementationof the Govt. \'. ctions

43 \) <:

·.~B.;r.c-~oi Bangalore Electricity Supply Company Limited

... (Wholly owned Government of Karnataka Undertaking)(CIN- U04010KA2002SGC03043B)

immediately. An action taken report shall be submitted to theensuing Board of Directors meeting by the GM(A&HR), BESCOMand by the CGM(F&C), for implementing the orders issued in thisbehalf.

There were no other subjects to discuss.At this juncture, the Boardadvised the Company Secretary, BESCOMto take necessaryactions toadopt paperless Board room process and automation of Board agendaprocess suitably for next Board meeting duly obtaining suitable softwareapplication from the General Manager(ICf&MIS), BESCOM. TheGM(ICf&MIS) shall providesuitablesoftware applicationimmediately.

Meetingconcludedat 3:30 PMwith vote of thanks to he chair.

BengaluruDtd: ~8103 ,'2-0lb

44