Wired for Success: How a Top Cop Turned Around Two Discoms tells the remarkable story of the author, Shatrujeet Kapur’s leadership in transforming Haryana's power sector as the CMD of two power distribution companies. The book takes readers through the intricacies of power, bureaucracy, and the challenges of leadership Kapur faced, navigating bureaucracy, and leading his team to success. When the author was appointed by the then-Chief Minister in late 2016, the companies had combined losses exceeding INR 29,000 crore. By the time he left in 2020-21, the reforms he initiated had led to financial gains of INR 15,966 crore.

Beyond financial success, the reforms significantly improved power supply reliability, expanded access to electricity in rural areas, upgraded the distribution network, and enhanced consumer satisfaction – stabilizing the sector and its stakeholders. The author’s leadership focused on rooting out corruption, streamlining processes, and integrating technology and innovation.

When I asked him why he chose to write a book on the power sector. He said that real life experiences add to the treasure box, which can enable one to learn from the real scenarios and mitigate issues addressing their core.

He said that the real challenge is distribution, and the Discoms were not equipped with adequate idea about it, even at the senior executive and beginners’ level. There was a huge gap in capacity building; which led to inability to implement and operationalize best practices in the sector. This in turn, resulted in huge losses to the state.

Author’s approach serves as a blueprint for tackling systemic challenges and fostering long-lasting improvements, both in the power sector and beyond. It serves as a guide for successful leadership and navigating complex systems.

Dear Readers,

Presenting to you the narrative of Discom by the author Shatrujeet Kapur, a 1990-batch IPS officer, has made significant contributions to Haryana's power sector as the CMD of the state’s power distribution companies from 2016 to 2021, implementing major reforms. His leadership transformed the sector, enhancing efficiency and service delivery. His illustrious career includes several prestigious accolades, such as the UN Peacekeeping Medal, the Police Medal for Meritorious Service, and the President's Police Medal for Distinguished Service. Currently, he is serving as the Director General of Police in Haryana, he continues to lead with distinction, reflecting a legacy of dedication and excellence in public service and law enforcement.

Let’s learn from the book about the paradigm shift from dismal reality to hopeful tomorrow.

The first chapter starts in September 2016, when the author had a stroke of memorable experience while commuting to their office in Panchkula. They received an unexpected phone call from the chief minister's office, which led to a direct conversation with the chief minister himself. During their conversation, the chief minister discussed the challenges facing the state's power utilities and expressed his desire to appoint the author as the chairman of the electricity distribution companies (Discoms). The author felt deeply honoured and pleased by this prestigious offer, recognizing it as a remarkable recognition of their work and abilities as a career public servant. This personal acknowledgment from the head of the state government was a significant moment for the author, underscoring the value of their dedication and expertise.

Shri Manohar Lal became the 10th Chief Minister of Haryana on October 26, 2014, making history as the first-time MLA to hold the position. The author had no prior acquaintance with him until after his election. Shortly after, the author received a call to meet the Chief Minister in Chandigarh. The BJP, now in power, lacked familiar faces within the bureaucracy and sought feedback to fill key positions. The author's name was shortlisted to head the state intelligence wing (CID), but they were reluctant due to lack of experience and inclination for the role. However, after a second meeting with the Chief Minister, who impressed the author with his simplicity and idealism, they were persuaded to take up the job, perceiving a ray of hope in his leadership.

The new government in Haryana achieved significant accomplishments, including the successful implementation of the Beti Bachao Beti Padhao scheme, which led to the apprehension of doctors involved in illegal sex determination and female foeticide, resulting in a notable improvement in the gender ratio in the state. They also focused on power sector reforms, introducing the Mhara Gaon Jagmag Gaon scheme to upgrade rural power infrastructure, although success eluded them in this area. Meanwhile, the author, who had been transferred to head the state crime branch, received an offer from the chief minister to become the chairman of the electricity distribution companies. The author expressed concerns that the chairman's role was non-executive and might not allow them to deliver the desired results. Despite this, the chief minister, known for his determination, called again the following week to discuss the offer further.

To add to this, the author’s high-dimensional focus was also on rural electrification. Why? Rural electrification system is slightly more complex due to lack of amenities, education, skill paucity and more. On top of that it takes time. However, the major speedbreaker here was the distribution in those areas as it deals with the masses. It is labour-intensive, land-intensive intertwined with other intenser factors. The author shared that this served as one of the problems from the Pandora's box he opened.

As we gradually move further in the chapter, we learn that the author was appointed Chairman-cum-Managing Director (CMD) of Discoms, Haryana's power distribution companies, and accepted the offer, marking the beginning of a 4.5-year tenure.

During this period, the author achieved a complete turnaround of both utilities, a feat unprecedented in Haryana's history, known for its inefficient power supply and losses. However, the combined accumulated losses of the two companies were over ₹29,000 crore when the author took over, but by the end of their tenure, financial gains from reforms stood at ₹15,966 crore.

The gains were not only financial but also included:

●      Enhanced reliability and continuity of power supply

●      Better access to electricity, especially in rural areas

●      Upgraded distribution network

●      Improved processes and ease of doing business

●      Higher consumer satisfaction

He faced challenges from vested interests profiteering at the expense of taxpayers and consumers, revealing deep-seated systemic corruption, which operated at various levels, from procurement to power purchase contracts, encouraging inefficiency and rent-seeking behavior. The author's experience highlighted the need to address systemic corruption to improve the power sector's efficiency and transparency.
 

While the next chapter talks about “The Intriguing World of Power Purchase” highlighting his role as CMD of Haryana Discoms as he continued to face new challenges and lessons in the power sector. Corruption in the power sector manifests in a spider-like form that weaves webs everywhere, and even an experienced IPS officer like the author had to be prepared for unexpected situations.

In February 2018, an acquaintance visited the author at the UHBVNL office in Panchkula and shared alarming information about a private thermal power company. The company was allegedly inflating bills for compensation due to the "Change in Law" clause in Power Purchase Agreements (PPAs) and domestic coal shortages.

Upon finding the information credible and alarming, he prompted further consideration and investigation.

The author investigated a private thermal power company for allegedly inflating bills to Haryana Discoms, despite receiving payments of nearly ₹1,050 crore. The Central Electricity Regulatory Commission (CERC) had directed Discoms to pay compensation for changes in taxes and duties on domestic and imported coal. To verify the information, the author sent two senior officers to Kolkata and Sambalpur to gather data on coal ordered and received by the company from Coal India Limited (CIL). The Railway authorities and CIL executives were initially uncooperative, but with assistance from contacts in the Railways and CBI, the necessary data was obtained. The data revealed that the private generating company was diverting coal intended for Haryana to its other plants in Maharashtra and Rajasthan.

The company was using imported coal to supply power to Haryana, while claiming compensation for domestic coal shortages. The investigation uncovered a disturbing pattern of the company inflating its bills to Discoms, resulting in significant financial implications.

Investigation revealed that a private thermal power company was inflating bills to Haryana Discoms by:

‣ Diverting coal intended for Haryana to other plants in Maharashtra and Rajasthan

‣ Using imported coal to supply power to Haryana while claiming compensation for domestic coal shortages

The company's actions resulted in a loss of ₹273 crore to Discoms. It failed to notify Discoms of changes in fuel supply arrangements, as required by the Power Purchase Agreement (PPA) and claimed of domestic coal shortages were exaggerated, with actual compensation due being ₹311 crore instead of ₹852 crore. Armed with evidence, the author confronted the company, and after negotiations, a settlement deed was signed, recovering nearly ₹700 crore.

As you steer through the next chapters, the author has described about the Haryana Discoms at a Glance.

Haryana's power distribution system involves:

• Receiving electricity at 33 kV level from state transmission utility
• Stepping down voltage to 11 kV through 800+ substations
• Carrying electricity through 11 kV feeder lines (overhead HT wires or underground cables)
• Further stepping down voltage to 400 V through distribution transformers (DTs)
• Supplying electricity to consumers over low-tension (LT) lines
• Transmission and distribution systems are distinguished by voltage levels:
• Distribution system: up to 33 kV level
• Transmission system: 66 kV level or above

 Here’s a quick timeline of Haryana's electricity sector history:

• 1966-1998: Haryana State Electricity Board (HSEB) handled generation, transmission, and distribution
• 1998: HSEB was restructured into two corporations - Haryana Vidyut Prasaran Nigam Limited (HVPNL) and Haryana Power Generation Corporation Limited (HPGCL)
• 1999: HVPNL underwent further reorganisation through a second transfer scheme

 

“The geography of the states like Uttarakhand and Himachal Pradesh, supports and facilitattes the government to manage the demand of its electricity through hydro power. However, it is quite unlikely that Haryana can replicate the same and utilise hydroelectricity to reduce the gap between demand and supply. Hence, it becomes imperative that some strategic reformations are carried out,” the author described during the interaction.

UHBVNL and DHBVNL, through the Haryana Power Purchase Centre (HPPC), procure power for over 76 lakh consumers in Haryana. UHBVNL is responsible for power distribution and retail supply in northern Haryana, covering districts such as Panchkula, Ambala, and Yamuna Nagar.

Consumer classification in Haryana:

• Domestic Service (DS): household connections
• Agricultural Pumpsets (AP): tube well connections for farmers
• Industrial: distinct consumer category
• Non-Domestic Service (NDS): commercial, institutional, and other connections

Further classification within DS, NDS, and industrial categories:

• Low Tension (LT): connected load up to 50 kW
• High Tension (HT): connected load of 50 kW or above

As of March 31, 2023, HPPC has contracted 13,442.77 MW of power from various sources, exceeding the maximum intra-day demand of 12,768 MW recorded in FY 2022-23.

• Power is delivered to the Discoms' network through the state transmission utility (HVPNL).
• Total consumers: 76.65 lakh (as of March 31, 2023)
• Contracted generation capacity: 13,442.77 MW (as of March 31, 2023)
• Per capita electricity consumption in FY 2021-22: 2,167 kWh (higher than the national average of 1,161 kWh)
• Highest peak demand: 12,768 MW
• Highest-ever daily supply: 263.60 million units (MU) on June 28, 2022

 The author describes that the power sector, particularly state-owned companies, suffers from all-round mediocrity due to:

- Excessive job security leading to complacency and lack of motivation

- Seniority-based promotions rather than performance-based

- Absence of objective performance appraisals

- Lack of performance-based transfers

This results in  inefficiencies prevalent in government departments and PSUs; promotions influenced by non-merit factors like political connections, personal influence, and pecuniary considerations; and professional competence, domain expertise, and performance being undervalued.

What actually ails the Discoms in India?

1. Neglected HR management:

    - Limited emphasis on capacity building and career planning

    - Technical personnel have outdated knowledge and skill sets

    - Few individuals stay updated on latest advances and innovations

2. All-pervasive corruption:

    - Affects individuals at all ranks & stakeholders

    - Contributes to most problems faced by Discoms

    - Addressing corruption is challenging due to lack of will

3. Need for capable leadership, combating mediocrity, and eradicating corruption to strengthen the power sector and ensure efficient and sustainable power distribution.

During my discussion with him he shares that one of the pivotal reasons behind writing this book was to save Discoms from losses due to lack of knowledge, skills and exposure. Undoubtedly, these reasons hold back the state governments from becoming Stars, Cash Cows or Question Marks.

The author explores real-life cases and propose solutions to address these challenges in subsequent chapters. As you move forward you get to learn that he went on to carry out systemic reforms in procurement and design, which is described as “quite lengthy and cumbersome”. One of the major financial reforms carried out under his leadership is:

 

Strengthening internal audit of the Haryana Discorns, which has a functional internal audit wing headed by a chief auditor, who is a financial advisor-level officer, which is performed on several key functions, including:

1. Conducting an annual audit of works and expenditure accounts.

2. Performing concurrent audits of revenue and consumer accounts.

3. Handling special audit assignments and investigating complaints.

4. Coordinating with the comptroller and auditor general of India (C&AG) regarding the audit of the company's accounts and matters discussed in the committee on public undertakings of the state legislative assembly.

The chief auditor reports to the audit committee of the board of directors through a defined process.

This enabled him to have a transparent picture of the situation so that accurate diagnosis can be done to resolve the problems. By strengthening internal audit system, he strengthened the spine of the sector.

 

Some more financial systemic improvements made by them are enabling bill payment through RTGS/ NEFT, Bharat Bill Payment System (BBPS), Common Service Centres (CSCs), and Post Offices.

Another notable improvement carried out under his leadership was the decision to galvanise all steel items in future as it prevented rusting, thereby improving the lifespan of the items in addition to enhancing the aesthetics.

Similarly, “the design of GO switches underwent comprehensive improvements, including changes in material, configuration and other specifications. As a result of the improved GO switches, not only did the frequency of breakdowns decrease but the number of electrical accidents also witnessed a reduction.”

“Furthermore, key changes were made in the configuration of HT and LT lines. Prior to 2020, different field units used different layouts for HT and LT lines. Therefore, it was felt necessary to formulate standardised guidelines and implement a universal design for the construction of LT, 11 kV and 33 kV HT lines taking into account the requirements of load growth, availability of land for the erection of lines, i.e. 'right of way' (ROW) and aesthetics. The configurations of feeder lines were deliberated at length and standardised for urban as well as rural areas. Consequently, 11-metre poles are now used for erecting overhead power lines except in rare cases involving site constraints, where 9 metre poles are allowed to be used. Similarly, the ACSR conductor size has been fixed at 100 sq mm, except for spur lines in rural areas where 80 or 50 sq m mm conductors are permitted. These changes ensured that electrical lines have sufficient capacity to handle additional demand.”

He added, “Customers are treated as kings. They fund every sector with their purchase power. Hence, it became extremely essential for us to make the process smoother and seamless for them, while we’re carrying out some transformative measures internally. The reflections should be on the charts of the customer-satisfaction reports. Only this way we can make this sector sustainable and self-sufficient to greater extent.”

The author also carried out some consumer satisfaction initiatives, which aimed to provide electricity to all unconnected households within three years. The state achieved remarkable success in five years, significantly improving distribution system availability in urban areas, with average supply reaching 24 hours (excluding scheduled maintenance outages).

The rural areas saw the biggest transformation as the:

- distribution losses decreased by 40 percentage points.

- 5,270 out of 7,045 villages received 24x7 power supply by March 2021.

- villages previously had less than 12 hours of supply with frequent interruptions.

All of this was made possible through some of the major initiatives like: a) Mhara Gaon Jagmag Gaon (MGJG) scheme (implementation since 2016); provision of electricity connections to un-electrified Dhanis (small clusters of houses outside village boundaries); and Policy decision in 2017 to provide electricity from AP feeders. This benefitted in improved power supply quality; increased access to electricity; enhanced consumer satisfaction; reduced distribution losses; increased power supply hours; and electrified previously unconnected households and Dhanis.

This book contains his journey in Discom, all encapsulated in 304 pages, offering detailed and valuable lessons in corporate leadership and power sector reforms and even to the other states, making it essential reading for managers, policymakers, and leaders in developing economies worldwide.

When I ponder upon, how could the author do so much in his tenure? I get the answer that its probably because of the motivation rendered by his father (to whom this book is dedicated), who has always pushed him to dream big in life; hence, the landmark reformations could actually take place. This is a precious handbook on Discom that covers everything about it in 24 chapters standing on practical scenarios and experiences. A Must Read!

• Book Critic & Review Writing by Smruti Sweta Samantray