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You have worked as a government employee for nearly two decades and are now heading Central Electricity Supply Utility of Odisha (Cesu), a private unit. How has the transformation been?
In public administration, one learns how to be flexible and adjust to various departmental works. Private service is not very different. Cesu is a public utility and we are providing light, an essential service, to every household and industry for the state’s development.
But still there are 17 lakh households under Cesu jurisdiction, which are yet to be electrified.
When the electricity reform started in 1996, Cesu covered only 5 lakh consumers. We have added 12 lakh consumers in a span of 17 years. But we can’t invest money in rural electrification; that is a programme of the state government as well as the Centre. There is a gap between demand and supply of power. The government of India is taking up the second phase of Rajiv Gandhi Grameen Vidyutikaran Yojana under which all villages will be electrified.
What exactly is the vision plan of Cesu?
To provide reliable and uninterrupted power to our consumers.
Don’t you think you have failed to achieve that because there are unscheduled power cuts in several parts of the state, especially the rural pockets?
You are right. But, I can say that we have faced the summer because we upgraded 100 primary substations. There have been interruptions because our infrastructure is not enough to evacuate, carry and distribute energy, as it should have been. In the last 10 to 15 years, there has not been any investment in infrastructure development in electrical sector. Very recently, we have started some programmes for infrastructure development.
The government allocated Rs 2,400 crore under the Capital Expenditure (Capex) programme for system improvement back in November 2010, but work started only recently. Why was it delayed?
I agree that we have badly delayed it. To be frank, Cesu has to invest Rs 351 crore in the Capex-I programme. After I joined 10 months ago, we have programmed for investment of Rs 369 crore and accordingly, we have tendered all our contracts, purchased almost 100 per cent materials for the project. In the electrical sector, procuring materials takes time and we did not get good contractors immediately. Now, the work has started. We have utilised around Rs 100 crore already but its effect will be felt by next summer.
So you are assuring people that they will not face unscheduled power cuts next year?
I hope and trust that there will be a lot of improvement in our services. I can’t say that people will not face any difficulty because one cannot rule out technical failure and natural calamities.
The per capita consumption of power in Odisha (818 units) is more than the national average of 779 units. Most power comes from coal and the environmental hazards are there for everyone to see. Where exactly are we headed?
Hydropower generation is meeting 30 per cent of Odisha’s total power requirement, which is fine. But, yes, coal energy impacts the environment. So the government is planning to go for green energy. We are also exploring renewable energy sources. Personally, I believe that to protect the earth, we should rely more on hydropower and natural energy sources such as solar and wind energy.
From the Odisha State Electricity Board (OSEB) to Cesu and now franchisees, various organisations are being engaged from time to time to improve the electricity supply sector. Do you feel franchisees will be accountable to consumers?
In fact, franchisees existed from the OSEB’s time but in small areas. The accumulated loss of Cesu is around Rs 1600 crore and no financial institution will give you loan. You are not in a position to hire more manpower. So we have to rely on private parties, which will invest capital, hire people to do the work. They will invest Rs 800 crore in our infrastructure over five years. Initially, there was resentment among our employees but now they have understood that to improve our services, we have to engage franchisees.
Corruption is allegedly rampant in Cesu in awarding tenders and other things. How do you plan to curb it?
It is a fact that corruption prevails among a few of our field functionaries and that is why the entire organisation is blamed. But I believe if the boss is honest, 50 per cent corruption is automatically weeded out.
There have been a number of elephant deaths because of electrocution. What are you doing in this regard?
The state has made a budget provision of Rs 21 crore to upgrade electricity lines in five elephant corridors in Cesu area. We will increase the height of the lines, interposing poles, change open conductors to AV cables, wherever possible. Work will be completed this year.
The transmission and distribution (T&D) loss still hovers around 40 per cent. How do you plan to minimise it?
The T&D loss is 38 per cent now, which is much higher than national average because of weak infrastructure. But the commercial loss has increased. As you know, there were two tariff hikes in the last two years. But the high court put a stay on the hike in 2011-12 and it was vacated only last year. As a result, two tariff hikes were placed on the consumers at the same time and this led to non-payment of bills. The outstanding dues at this moment are around Rs 250 crore, most of which has accumulated over the years.
A self-made man
A former excise commissioner, Sudarsan Nayak, 62, is the chief executive officer of the Central Electricity Supply Utility of Odisha (Cesu), which supplies power to nine districts of the state.
Nayak was born and brought up in the village of Biras in Bhadrak district. Incidentally, he was the first matriculate of his village. He went on to complete his graduation in economics and political science from the Bhadrak College. He then attended Madhusudan Law College, Cuttack. He also holds a post-graduate diploma in taxation and labour laws from College of Accountancy and Management Studies, Cuttack, as well as a masters degree in law from Utkal University (pioneer batch)
While studying at Utkal, he joined state law department as assistant officer. He left government service to work in Metals and Minerals Trading Corporation only to be back in the law department here. He was legal advisor to Odisha governor for nearly five years
After being promoted as IAS officer in 1999, he served in several key positions of state administration. He was instrumental in drafting the Orissa Electricity Reform Act, 1995, as deputy secretary of the law department
WHAT WOULD YOU HAVE BEEN HAD YOU NOT BEEN IN GOVERNMENT SERVICE?
I would have been an advocate or maybe, a judge in the high court by now. I was in legal service for 22 years after which I became an IAS officer. After retiring from government service, I was appointed as the CEO of CESU





