kesco turnaround

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KESCO TURNAROUND Manoj Jhawar, MBA 2 nd year IIT Kanpur,2013

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kanpur electricity supply company turn around plan

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Page 1: Kesco turnaround

KESCO TURNAROUNDManoj Jhawar,MBA 2nd year

IIT Kanpur,2013

Page 2: Kesco turnaround

Objectives for next 5 yrs Distribution losses 40% to 25% Increase metered connections from 3lac

to 5lac Cut manpower from 10k to 8k Improve profit from 50 Cr to 200Cr Halved the no. of B/D and complaints

Page 3: Kesco turnaround

Distribution losses 40% to 25%

Increasing operational and technical efficiency by increasing sub stations, capacitor replacement, R&M of transformers, service connection improvement, IT enabling including substation automation, construction of new sub-stations, construction of new lines, bifurcation of feeders, etc

E.g.  7 existing transmission substation of 220 KV and 132 KV to 12 transmission substation.

Upgradation and strengthening of sub-transmission and distribution network (below 33kV or 66kV)

GOI initiative-Restructured Accelerate Power Development Reform Programme (R-APDRP) under 12th plan to bring down distribution losses to 15 per cent by implementing projects within 18 to 24 months

Page 4: Kesco turnaround

Increase metered connections from 3lac to 5lac

Theft- Call center – Rewarded & Awareness campaign

E.g.Voters 165000 in Naubasta Sub Div but paying Consumer is less than 10000

Illegal connections to be converted into metered ones

Joins Home& Shop concept to be separated using individual commercial and domestic connection

Multi Floors Building- one connection but many consumers

Page 5: Kesco turnaround
Page 6: Kesco turnaround

Cut manpower from 10k to 8k

Outsourcing non essential works such as cleaning, IT maintenance and some other works such as Transformer & electrical line related

Automation of various service such as intensive computerization of HR, Accounts, Technical, etc

VRS to some employees

Page 7: Kesco turnaround

Improve profit from(-) 50 Cr to 200Cr

Reduce power theft will add to profit Reduced Distribution losses will add to profit Electronic tamper proof meter will be

installed In Kanpur, revenue realisation is Rs 1.68 per

unit and it would be brought to Rs 2.37 per unit

Increase tariff rate- Peak time tariff, peak season tariff

Arrear settlement for existing Consumers arrear having >25000.

Page 8: Kesco turnaround

Halved the no. of B/D and complaints

Invest in Power enhancement capacity

Buy power from power Exchange if unable to meet demand

Improve customer care & relationship- By adopting best practice in power industry and resolving complain within 2hr for minor & transformer replacement within 6 hrs

Multi or Single AC eg swaroop nagar

Improving Maintenance of Meters & transformers