A STUDY ON THE BALANCE OF PROFIT AND SERIVCE

IN KERALA STATE ELECTRICITY BOARD LIMITED

Project Report

Submitted in partial fulfilment of the requirement for the award of the

Degree in Master of Business Administration at School of Distance
Education, University of Kerala, Karyavattom, Thiruvananthapuram.

Submitted by

SREEJITH S

Register number 872201031

Under the guidance of

Dr. K. S. Suresh Kumar

Professor and Director
(SDE, University of Kerala)
 DECLARATION

I SREEJITH S (Reg. No: 87201031) hereby declare that the project

entitled “ A study on the balance of profit and service in KSEBL ” submitted to

the School of Distance Education, University Of Kerala, in partial fulfilment of

the requirement for the award of the Degree in Master of Business Administration

is a record of original research work done by me during the period of October

2023-January 2024 Under the supervision and guidance of Dr. K.S. Suresh Kumar

and the project has not formed the basis for the award of any of any Degree/

Diploma/ Associateship/ Fellowship or other similar title to any candidate of any

University.

SREEJITH S

2
 CERTIFICATE

This is to certify that the project entitled “A Study on the balance of profit and

service in KSEBL ” submitted to the School of Distance Education, University Of Kerala,

in partial fulfilment of the requirement for the award of the Degree in Master of Business

Administration is a record of original research work done by SREEJITH S (Reg. No:

872201031) during the period of October 2023 -January 2024 under my supervision and

guidance and the project has not formed the basis for the award of any

Degree/Diploma/Associateship/Fellowship or other similar title to any candidate of any

University.

Dr. K S Suresh Kumar

Professor and director
School of Distance Education
University of Kerala, Palayam
Thiruvananthapuram

3
 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of this MBA project. I am thankful for their aspiring guidance,
invaluably constructive criticism and friendly advice during the project work. I am
sincerely grateful to them for sharing their truthful and illuminating views on a number of
issues related to the project.
I am intended to the almighty God who showered blessings upon me to conduct
and complete this project successfully.
First and foremost, I acknowledge with gratitude the kind guidance and helpful
criticism of our respected Project Guide Dr. K S Suresh Kumar professor and Director,
School of Distance Education, University of Kerala.
I express my warm thanks to Sri Nolan sir, and the employees for their support
and guidance who provided me with the facilities being required and conductive conditions
for the successful completion of my MBA project.

I would like to extend my gratitude to everyone who helped me in this endeavour

in some manner whether small or great. Thanks are owed to each person whom I might
have inadvertently forgotten.

Very obediently,
SREEJITH S

4
 CONTENTS

Chapter no Title Page no

1 Introduction

2 Review of Related Literature

3 Industry Profile

4 Data Analysis

5 Findings

6 Recommendation

7 Conclusion

8 Annexure

5
 CHAPTER 1

INTRODUCTION

6
INTRODUCTION

Kerala State Electricity Board Limited (KSEBL) was incorporated under the Indian
Companies Act, 1956 on 14.01.2011 and Certificate of Commencement of Business was
obtained on 06.06.2013. The Government of Kerala, following the Section 131 and 133
of Electricity Act 2003, revested the assets and liabilities of former Kerala State
Electricity Board (KSEB) with KSEBL which was vested with the Government by the
first transfer scheme notification dated 25.09.2008, by a notification called the second
transfer scheme on 31.10.2013. KSEBL functions as integrated electricity utility and
carries out the business of generation, transmission and distribution of electricity and
serves almost 99% of consumers in the state of Kerala. The company function as
integrated electricity utility carrying out the business through three separate Strategic
Business Units (SBU) for each of the functions of Generation, Transmission and
Distribution, headed by Full Time Directors.

At present the KSEBL functions in Net profit in 21-22 after a period continuous net loss
but increasing EBITDA for the last 6 years. The Net loss of KSEBL as on 31.03.2022 is
Rs 4187.53 Crore of rupees. . KSEBL as a utility need to perform better for a sustainable
growth of the economy and overall development of the people in general. Supplying of
uninterrupted electricity at affordable cost to everyone is a challenge. Even though the
affordability of electricity is primarily depended on the purchasing power of the people
but it has cyclic nature. As the electricity cost becomes affordable, it brings more
industry more development than it will automatically increase the purchasing power of
the people. Hence it is important keep electricity affordable to all. To make it possible it
is imperative that the industry shall perform with reasonable profit

In this Scenario this project aims to find the strategic shift needed in policy so as to
ensure continuous profit, with an un interrupted electricity affordable to all. The data
used for finding the above strategic shift are data Interruptions (SAIFI ), Penetration of

7
Electric Vehicle , Modern Network etc . This data shows that a capital investment of Rs
around 25000 crore with IRR of around 4 years has to be implemented to make the
industry profitable to the tune of Rs 6500 crore afterwords FY 2030. Moreover, it will
increase the good will and other economic development in Kerala which will bring the
Kerala to a New Kerala in 2030

OVERVIEW OF KSEBL

Kerala State Electricity Board Limited (KSEBL) was incorporated under the Indian
Companies Act, 1956 on 14.01.2011 and Certificate of Commencement of Business was
obtained on 06.06.2013. The Government of Kerala, following the Section 131 and 133
of Electricity Act 2003, revested the assets and liabilities of former Kerala State Electricity
Board (KSEB) with KSEBL which was vested with the Government by the first transfer
scheme notification dated 25.09.2008, by a notification called the second transfer scheme
on 31.10.2013. KSEBL functions as integrated electricity utility and carries out the
business of generation, transmission and distribution of electricity and serves almost 99%
of consumers in the state of Kerala. The company function as integrated electricity utility
carrying out the business through three separate Strategic
Business Units (SBU) for each of the functions of Generation, Transmission and
Distribution, headed by Full Time Directors.
KSEBL while continue to function as integrated entity in consistent with the state
government policy is carrying the functions through Distribution, Transmission and
Generation strategic business units ( SBU) as different functional verticals under the
preview of Electricity Act 2003. The Company is managed at the corporate level by the
Board of Directors of the company headed by the Chairman and Managing Director. The
full-time directors of the company take decisions on routine affairs related to each strategic
business unit.

8
WORLD BANK REPORT – APPRECIATION OF KSEBL PERFORMANCE

The report, titled ‘More Power to India’, authored by Sheoli Pargal and Sudeshna Ghosh
Banerjee, senior economists with the World Bank, published in June, said the KSEB had
the highest accumulated profits in 2011 among the power utilities directly serving the
consumers in the country. “But since 2011, the KSEB’s finances have been constrained
due to the State’s declining hydro generation, forcing the utility to purchase power from
external sources and draw down surpluses earned in earlier years. Inadequate planning for
power procurement to address demand growth has exacerbated the change in fortunes of
the utility, which remains well managed but is now suffering in the face of external
shocks,” it said.

In 2011, Delhi, Kerala and West Bengal were the only States where the revenue from sale
of power covered the cost of supply without infusion of subsidies. Kerala is considered to
have one of India’s best performing electricity sectors. According to Power Finance
Corporation data for 2003–11 on utilities directly serving consumers, the Kerala State

Electricity Board (KSEB) consistently ranks among the top utilities in India. In 2011 the
KSEB had the highest accumulated profits and ranked third on profit after tax. Aggregate
technical and commercial (AT&C) losses were 14 percent, which is the seventh lowest
among all distribution utilities. And transmission and distribution losses declined
consistently every year after 2001. All connections are metered and theft of electricity is
practically non‐ existent. In 2010 Kerala received the National Energy Conservation award
for its efforts in this field. One of the key objectives identified in the draft State Power
Policy is "enhancing share of 'renewable energy in the Generation’ Mix"'. The major
challenge in developing solar Power Generation in the State is identified as the lack of
vast tracts of land required to establish large sized plants. Hence, decentralized solar panels
on roof tops is identified as the desired mode for massive deployment of solar projects in
Kerala. The State is committed to resolve barriers occurring if any, through institutional
intervention. KSEB Ltd have taken the lead in implementation, with deployment through
organizational revamping and creation of new business models. Kerala has launched 'Urja
Kerala Mission', an aggressive Energy Generation and Conservation programme. To shore
up this KSEBL implemented the flagship project “SOURA '' to add 1000 MWp Solar
Power Plants to the network of KSEB Ltd

9
 CHAPTER 2

REVIEW OF RELATED LITERATURE

10
India has one of the largest and most complex power sectors in the world . KSEBL is a
part of Indian power sector handles Generation , Transmission and distribution as a single
entity .KSEBL as a utility need to perform better for a sustainable growth of the economy
and overall development of the people in general .Supplying of electricity 24X7 without
interruption at affordable cost to everyone is a challenge . Even though the affordability
of electricity is primarily depend on the purchasing power of the people but it has cyclic
nature . As the electricity cost becomes affordable, it brings more industry more
development then it will increase the purchasing power of the people .

Electricity Industry has been Experiencing a significant change in the external

environment, and even the organisational priorities have changed drastically since the last
restructure occurred in 2002. Disruptive technologies are making their way into the system
in scale , which will require a change in strategy for them to be adapted to their benefits.
As the industry encounters with disruptive external environment corrective adjustments
are to be incorporated in the vision , Mission , Objectives and Goals of KSEBL to
strengthen the Kerala Model across the Electricity Industry .Virtual competition and
Benchmarking should be adopted in all the job profile more proper monitoring and to make
a competitive edge in the industry

ORGANISATION CHART

The Organisation chart of Kerala State Electricity Board Ltd is given in figure.

Objective of the study

11
In the Indian power sector scenario the distribution chain is considered as the weakest link

in the entire power sector . It is because of various reasons such as rudderless development

strategies , Centralised uniform power sector reform Packages etc .

Organization chart of KSEBL (courtesy: ARR, KSEBL, 2020-21).

3.1 TITLE OF STUDY

The study was conducted in the Vydyuthi Bhavan, KSEB, Pattom

Thiruvananthapuram Dist. The title of the project is “A study on the balance of profit
and service in KSEBL”.

3.2 STATEMENT OF THE PROBLEM

India has one of the largest and most complex power sectors in the world . KSEBL is a
part of Indian power sector handles Generation , Transmission and distribution as a single
entity .KSEBL as a utility need to perform better for a sustainable growth of the economy
and overall development of the people in general .Supplying of electricity 24X7 without
interruption at affordable cost to everyone is a challenge . Even though the affordability

12
of electricity is primarily depend on the purchasing power of the people but it has cyclic
nature . As the electricity cost becomes affordable, it brings more industry more
development then it will increase the purchasing power of the people .

Electricity Industry has been Experiencing a significant change in the external

environment, and even the organisational priorities have changed drastically since the last
restructure occurred in 2002. Disruptive technologies are making their way into the
system in scale , which will require a change in strategy for them to be adapted to their
benefits. As the industry encounters with disruptive external environment corrective
adjustments are to be incorporated in the vision , Mission , Objectives and Goals of
KSEBL to strengthen the Kerala Model across the Electricity Industry .Virtual
competition and Benchmarking should be adopted in all the job profile more proper
monitoring and to make a competitive edge in the industry

3.3 OBJECTIVE OF STUDY

In the Indian power sector scenario the distribution chain is considered as the weakest link
in the entire power sector. It is because of various reasons such as rudderless development
strategies, Centralised uniform power sector reform Packages etc . But this sector is
interface of the entire chain with the customers. It is important to keep this chain profitable
to distribute and uninterrupted supply of electricity to all with affordable cost .

13
 CHAPTER 3

INDUSTRY PROFIE

14
 Fig. KSEB PATTOM

Kerala State Electricity Board Limited (KSEBL) embarked on its journey under the
Indian Companies Act, 1956, on January 14, 2011. It commenced operations as an
independent company on November 1, 2013, following the issuance of the Certificate of
Commencement of Business on June 6, 2013.

Our Integral Role in Kerala's Electricity Sector

KSEBL operates as a fully integrated electricity utility, managing the generation,

transmission, and distribution of electricity across Kerala. Our reach extends to nearly
99% of the state's consumers. KSEBL is wholly owned by the Government of Kerala and
serves as a single company.

The Evolution: From Kerala State Electricity Board to KSEBL

Kerala State Electricity Board Limited is the successor entity to the Kerala State
Electricity Board, established by the Government of Kerala on March 7, 1957, under the
Electricity (Supply) Act, 1948. Following section 172 (a) of the Electricity Act 2003 and
mutual agreement between the Government of India and the Government of Kerala,
KSEB continued as the Transmission utility and Distribution licensee until September
24, 2008.

A Transformative Transition

By virtue of the powers vested in the Government of Kerala under section 131 of the
Electricity Act, 2003, the first transfer scheme notification (G.O Ms.37/2008/PD dated
September 25, 2008) transferred all functions, properties, interests, rights, obligations,
and liabilities of KSEB to the State Government until re-vested in a corporate entity.

15
The Rebirth of KSEBL

In line with section 131 (2) of the Electricity Act, 2003, the Government of Kerala (Gok)
issued the Kerala Electricity Second Transfer Scheme (Re-vesting) in 2013 (GO (P) No.
46/2013/PD dated October 31, 2013). This historic notification re-vested all assets,
liabilities, rights, and obligations previously held by the State Government in the
successor entity, Kerala State Electricity Board Ltd (KSEBL).

A Legacy of Growth

Over the past six decades, KSEBL has evolved from an initial installed capacity of 109
MW to an impressive 3,678.96 MW. Our Transmission and Distribution networks have
expanded to encompass over 373,313 and 87,877 circuit kilometres, respectively.
Presently, we cater to the needs of over 1.37 crore consumers across urban and rural
areas.

Adapting to Change

KSEBL's journey has seen significant changes in energy generation, cost structures, and
consumer patterns. Our commitment to providing affordable electricity has been met
with an increase in consumption, particularly in the domestic sector. This surge in
demand has necessitated investment in our power infrastructure, balancing peak and off-
peak requirements.

Renewable Energy: A Key Focus

KSEBL places a strong emphasis on renewable energy adoption, having added 1,105.672
MW capacity to the renewable energy landscape by the end of 2022-23. Solar power, in
particular, has seen exponential growth. To address the intermittency of renewable
energy, we are exploring the feasibility of Pumped Storage Plants and Battery Energy
Storage Systems.

Our Three Strategic Business Units

KSEBL operates through three distinct Strategic Business Units (SBUs) dedicated to
Generation, Transmission, and Distribution, each led by Full-Time Directors. Our
Corporate Office oversees common functions such as planning, finance, audit, legal
matters, human resources, commercial affairs, tariff, and regulatory affairs.

A Bright Future

Despite challenges, including the floods of August 2019 and the COVID-19 pandemic,
KSEBL remains steadfast in its commitment to providing reliable electricity to Kerala.
We continue to support the Oorjja Kerala Mission, striving to enhance transmission
infrastructure, improve power distribution, increase solar capacity, eliminate filament
lamps, and prioritize safety in the electricity network.

16
Towards a Sustainable Future

KSEBL is on a mission to meet the energy needs of Kerala without imposing power
restrictions by procuring power from external sources and power exchange. Our long-
term goal is to achieve energy neutrality, promoting the use of renewable energy sources
such as solar, wind, small hydro, and green hydrogen.

The Company is managed at the corporate level by the Board of Directors of the
company headed by the Chairman and Managing Director. The full-time directors of the
company takes decisions on routine affairs related to each strategic business unit and
departments. Key departments include Legal Affairs, Vigilance, planning,
Administration, Public Relations, Personnel, and Commercial.

Early Efforts in Kerala Electricity Sector (1900-1929)

The electricity sector in Kerala saw its beginnings in the early 1900s when the British
company, the Kannan Devan Hill Produce Company in Munnar, took the first steps. They
established Kerala's maiden hydroelectric project in 1900, which was commissioned by
1910 with a modest capacity of 200kW.

Around 1912-13, the government of Travancore started contemplating the significance of

electricity generation more seriously. Consequently, in 1913, a dedicated team led by
Chief Engineer Sri. S.M Jacob was formed to explore the feasibility of electricity
generation across the Travancore, Kochi, and Malabar states. In 1927, the Travancore
Government made the decisive move to generate electricity for the households in
Thiruvananthapuram city, leading to the formation of an Electricity Division under the
Public Works Department. Finally, in 1929, a Diesel Power Station, under Government
ownership, was established in Thiruvananthapuram to commence commercial electricity
production. This station featured three oil engine generators with a capacity of 65 kW each,
and it initiated commercial production in 1929 with a total installed cost of Rs. 9 lakh.
Subsequently, several private-sector agencies also came forward to produce electricity.

The next significant development was the establishment of a dedicated department for
electricity. In 1933, His Highness Sri Chithira Thirunal Balarama Varma Maharaja and his
Diwan Sir C P Ramaswami Iyer formed an Electricity Department under the Travancore
Government. The formation of this Electricity Department paved the way for notable
advancements in the sector. Thermal generating stations were set up in Kollam, Kottayam,
and Nagercoil in 1934. By this time, the potential of hydroelectric generation had begun
to draw the attention of technologists and authorities alike.

17
In 1933, work commenced on the first hydroelectric power station during the reign of the
Maharaja of Travancore, located in Pall vasal, a village in the southwestern part of the
Idukki district. On March 19, 1940, Sir C P Ramaswamy Iyer, the then Dewan of
Travancore, inaugurated the first stage of the Pallivasal project, which boasted an initial
installed capacity of 13.5 MW. This marked a significant milestone as the project was set
up to serve the power needs of the general public. In addition, the State Electricity
Department took over the 200 kW power station in 1928 from the Kannan Devan Hill
Produce Co. During this period, a comprehensive electric transmission network was also
completed, featuring 66 kV substations at Alappuzha, Mavelikkara, Kothamangalam,
Kundara, Kalamassery, Viyyur, Aluva, and Thiruvananthapuram, all of which were
commissioned in 1940 during April and May.

Post-Independence Consolidation (1950s-1980s)

On November 1, 1956, Kerala was formed through the merger of the Travancore-Cochin
state with the Malabar district of Madras State, including Fort Cochin and the Laccadive
Islands, along with Kasaragod taluk of the South Canara district and the Amindivi Islands.
The southern part of Travancore-Cochin, comprising the five taluks of Agastheeswaram,
Thovala, Kalkulam, Vilavancode, and Shencotta, was transferred from Travancore-Cochin
to the Madras State. This reorganization resulted in an increase in the number of assembly
constituencies, from 106 to 126 seats in 1957. The Election Commission of India
conducted elections for the newly created state between February and march.

In accordance with the powers conferred by Section 5 of the

Electricity (Supply) Act 1948, the newly formed Government of Kerala, elected through
the first general election, constituted the Kerala State Electricity Board on March 7, 1957.
The board was tasked with the responsibility of generating, transmitting, and distributing
electricity, with the aim of providing quality electricity at an affordable cost to all classes
of consumers in the state of Kerala. Kerala State Electricity Board commenced functioning
on March 31, 1957, as per order no. EL1-6475/56/PW dated March 7, 1957, of the Kerala
State Government. It had five members, with Sri K P Sreedharan Nair as the chairman. All
the staff belonging to the erstwhile Electricity Department was transferred to the Board,
effectively establishing the 'Board' consisting of the chairman and the Members as the
Supreme Governing Body.

At the time of its inception, in 1958, the KSEB had an installed capacity of 109.5 MW,
with a total annual internal generation of 441.35 MU. Fourteen years after the

18
commissioning of Pallivasal, the second powerhouse of the state of Kerala, the Sengulam
powerhouse with an installed capacity of 48 MW (4x12MW), was commissioned. The 300
MW Sabarigiri Hydro Electric Project, which was added to the Kerala System in 1966,
enjoyed the special status of having a capacity higher than the capacities of all the other
projects, including Sholayar, which was also in the final stages of commissioning in 1966,
in the Kerala system put together. Sabarigiri also elevated Kerala to a power-surplus state
in 1966.

However, the demand for power was steadily growing at a faster pace. Since then, project
after project was added to the Kerala power system until 1976, when the first stage of
Idukki HEP, with a capacity of 390 MW (3x130MW), was commissioned. When stage II
of Idukki, with a capacity of 390 MW, was also added in 1986, Idukki HEP became the
largest project in Kerala, with a total capacity of 780 MW. The project was dedicated to
the nation on February 12, 1976, by the then Prime Minister of India, Mrs. Indira Gandhi.
The Idukki project continues to be the largest project, hydro or otherwise, of the KSEBL
to date. There are three Dams associated with this project.

Hydroelectric Focus and Modernization (1980s)

After the commissioning of Idukki HEP in 1986, hydroelectric projects played a

significant role in capacity addition. Projects such as the 75 MW Idamalayar, the 150 MW
Kuttiyadi Extension Schemes, the 180 MW Lower Periyar, and the 50 MW Kakkad project
contributed substantially to the state's power generation capacity. However, proposals for
major hydel projects like Silent Valley and Pooyamkutty did not materialize due to issues
related to environmental clearance. Despite this, KSEB focused on small hydel projects
and commissioned 15 projects during this time.

Transition and Modernization -Formation of Profit Centres (1999-2003):

Consistent with the State Power Policy declared in 07/1998, the reorganization of the
activities of the Board under three Profit Centres came into effect during 1999-2000.
As per the reorganized structure, Generation, Transmission, and Distribution functioned
as separate profit centers controlled by independent Members and for an effective and
smooth functioning, other functions of the Board were controlled by the Corporate office.
Under the Corporate Office, there was an exclusive functional unit to handle matters of
Finance headed by the Member(Finance) and other important units were directly
controlled by the Chairman.

19
Transition as a Transmission utility and Distribution licensee (2004-2008):

By the enforcement of the Electricity Act 2003, in consistency with the State Power Policy,
the Board has three independent business entities namely the Generation Profit Centre,
Transmission Profit Centre, and Distribution Profit Centre, and a Corporate Office. The
Kerala State Electricity Board continued its functioning as a Transmission utility and
Distribution licensee with effect from 10.12.2004 under section 172(a) of the Electricity
Act 2003 as mutually decided by the Government of India and the Government of Kerala
and continued till 24-09-2008.
In exercise of the powers conferred under sub-sections (1), (2), (5), (6), and (7) of Section
131 of the Electricity Act 2003, the State Government issued a notification, G.O
(Ms).37/2008/PD, dated September 25, 2008. This notification vested all functions,
properties, interests, rights, obligations, and liabilities of KSEB with the State Government
until they were re-vested in a corporate entity.

Kerala State Electricity Board Limited (KSEBL) embarked on its journey under the Indian
Companies Act, 1956, on January 14, 2011. It commenced operations as an independent
company on November 1, 2013, following the issuance of the Certificate of
Commencement of Business on June 6,2013.
In a further exercise of powers under Section 131 (2) of the Electricity Act 2003, the
Government of Kerala (Gok) introduced the Kerala Electricity Second Transfer Scheme
(Re-vesting) 2013 through a notification, GO (P) No. 46/2013/PD, dated October 31, 2013.
This scheme re-vested all the assets, liabilities, rights, and obligations that were initially
transferred to the State Government by the first transfer scheme dated September 25, 2008,
into the successor entity, Kerala State Electricity Board Ltd (KSEBL).

Modernization and Sustainability (2013 to Present):

In recent times, KSEBL has focused on enhancing its services and efficiency. To provide
better customer service and enhanced customer satisfaction, KSEBL established a
Centralised Customer Care Centre and a 24*7 Centralised Call Centre under PART- A of
the RAPDRP scheme. As part of the ease of doing business, the customer web self-service
portal was also developed and thereby consumers can avail services in a hassle-free
manner.

20
 In 2017, Kerala achieved total household electrification, becoming the first state in India
to do so, a significant milestone in providing power to all residents. In 2018, Kerala
launched the 'Urjja Kerala Mission,' a comprehensive program aimed at the integrated
development of the electricity sector. This mission includes energy conservation, safety,
distribution, transmission, and solar power generation initiatives, aligning with the
national goal of achieving 100 GW of solar projects by 2022.

As part of the 'SOURA Rooftop Projects,' Kerala aims to establish 500 MWp of solar
power plants on rooftops of various buildings. This project encourages consumers to
actively participate in energy production and contributes to the state's energy
sustainability. As of March 31, 2023, Kerala's total solar capacity has reached 765 MW,
reflecting its commitment to renewable energy.
KSEBL is designated as the nodal agency for installing electric vehicle charging stations
as per the EV policy 2019 of the Government of Kerala. KSEBL has installed 66 DC fast
charging stations for four-wheelers across the state and 1166 pole-mounted charging
stations for auto-rickshaws and two-wheelers in all constituencies in Kerala. KSEBL has
also launched a dedicated mobile app - KeMapp for charging E-vehicles.

The journey of Kerala's electrification has come a long way, and it continues to evolve to
meet the growing demand for electricity in the state while embracing sustainability,
modernization, and the changing regulatory landscape.

21
The Journey to Precise Energy Management

Our journey towards more effective energy management began in June 2001 when we
initiated profit centre-wise energy transfer estimates, T&D (Transmission and
Distribution) loss assessments, and pinpointed high-loss areas. This monthly activity
marked a significant milestone, encompassing a thorough examination of our existing
energy accounting systems, replacing faulty meters, and strategically installing new meters
in key locations. To ensure comprehensive coverage, meters were strategically placed at
all substations and feeders up to and including 11kV.

Expanding Our Reach: The APDRP Scheme

Recognizing the importance of a proactive approach to energy auditing, the board made a
pivotal decision. We have embarked on a mission to install energy meters not only in all
distribution transformers across Kerala but also alongside the existing meters in all 11kV
feeders. This strategic move enhances the effectiveness of our energy auditing initiatives,
enabling us to monitor and manage energy consumption more accurately.

Reducing T&D Losses: A Core Objective

One of our central objectives is the continuous reduction of T&D losses, comprising both
technical and commercial (unaccounted) losses. Each year, we set an ambitious target of
reducing these losses by 2%. To realize this goal, we have implemented a series of critical
measures.

1. Technical Loss Reduction

In a concerted effort to minimize technical losses, we've taken several proactive steps.
During the 2002-03 period, we installed seven 33kV substations along with their
associated lines, extended our network by 611 kilometres of 11kV lines, introduced 830
distribution transformers, and added 120MVR shunt capacitors to our infrastructure. These
strategic investments significantly enhance the reliability and efficiency of our power
transmission and distribution systems.

2. Combatting Energy Theft

In our unwavering commitment to fair and accountable energy consumption, we've

strengthened the Anti-Power Theft Wing. This dedicated team works tirelessly to identify
instances of malpractice and energy pilferage. By tackling these issues head-on, we ensure
that every unit of electricity is used for its intended purpose.

22
At KSEBL, our energy auditing program is at the forefront of our mission to enhance
efficiency, reduce losses, and provide reliable power to our communities. We are
committed to pioneering sustainable energy solutions and continuously improving our
services to meet the evolving needs of our customers and the environment.

GENERATION FOR (30-Dec-2023)

Daily
Installed Day's Monthly
Major Avg.over the
Capacity Generation Cum
Stations month
MW MU MU MU
Group 1
Idukki 780 4.815 62.089 2.06963
Sabarigiri 340 3.27 83.6419 2.78806
Idamalayar 75 0.9446 12.2522 0.408408
Sholayar 54 0.8292 24.5701 0.819003
Pallivasal 38 0.4777 13.4473 0.448243
Total 1287 10.3365 196.0005 6.533344
Group II
Kuttiyadi 225 1.9939 36.686 1.22287
Panniyar 32 0.7738 20.6591 0.688637
Total 257 2.7677 57.3451 1.911507
Group III
Neriamangala
53 0.8197 27.6322 0.921073
m
Lower Periyar 180 1.065 43.102 1.43673
Poringalkuthu
36 0.20071 4.87424 0.162475
,PLBE
Sengulam 51 0.3426 10.6645 0.355483
Kakkad 50 0.4776 13.3816 0.446053
Kallada 15 0.2408 9.1946 0.306487
Malankara 11 0.01575 0.8742 0.02914
Total 396 3.16216 109.72334 3.657441
Group IV-Small Hydro KSEBL
Sum: Small
Hydro
Electric 177 0.324829 14.3027 0.476758
Stations -
KSEBL
Total 177 0.324829 14.3027 0.476758

23
 Daily
Installed Day's Monthly
Major Avg.over the
Capacity Generation Cum
Stations month
MW MU MU MU
Group -V- Small Hydro Power stations -CAPTIVE
Maniyar 12 0.06596 2.19763 0.0732543
Kuthungal 21 0.1364 5.5008 0.18336
Total 33 0.20236 7.69843 0.2566143
Group VI- Thermal Power stations -KSEBL
BDPP 64 0 0 0
KDPP 96 0 0 0
Total 160 0 0 0
Group VII Wind Power Stations- KSEBL
Kanjikode 2 0.00495 0.093293 0.00310977
Total 2 0.00495 0.093293 0.00310977
Group VIII-Solar Generation -KSEBL
Solar
Generation- 24 0.035139 0.989911 0.032997
KSEBL
Total 24 0.035139 0.989911 0.032997
Group IX-Generation -IPP
IPP-
NTPC.Kayam 360 0 0 0
kulam
BSES 100 0 0 0
KPCL 5 0 0 0
Small Hydro
50 0.184859 8.06317 0.268772
Generation
MPS Steel,
5 0.244739 6.66994 0.222331
PCBL
Sum of Wind
2 0.420277 8.22398 0.274133
Mills
Solar 590 1.38057 37.0163 1.23388
Total 1112 2.230445 59.97339 1.999116
Grand Total 3448 19.0641 446.1267 14.8709

24
 .

CHAPTER 4

DATA ANALYSIS

25
 HYPOTHESIS

A hypothesis is an assumption that is made based on some evidence. This

is the initial point of any investigation that translates the research questions into
predictions. It includes components like variables, population and the relation between the
variables. A research hypothesis is a hypothesis that is used to test the relationship between
two or more variables.
Characteristics of Hypothesis:
The hypothesis should be clear and precise to consider it to be reliable. If the hypothesis
is a relational hypothesis, then it should be stating the relationship between variables. The
hypothesis must be specific and should have scope for conducting more tests. The way of
explanation of the hypothesis must be very simple and it should also be understood that
the simplicity of the hypothesis is not related to its significance.

Sources of Hypothesis :Following are the sources of hypothesis,

• The resemblance between the phenomenon.

• Observations from past studies, present-day experiences and from the competitors.
• Scientific theories.
• General patterns that influence the thinking process of people.

Types of Hypotheses
There are six forms of hypothesis and they are:

• Simple hypothesis
• Complex hypothesis
• Directional hypothesis
• Non-directional hypothesis
• Null hypothesis
• Associative and casual hypothesis

26
 Simple Hypothesis
It shows a relationship between one dependent variable and a single independent variable.
For example – If you eat more vegetables, you will lose weight faster. Here, eating more
vegetables is an independent variable, while losing weight is the dependent variable.

Complex Hypothesis
It shows the relationship between two or more dependent variables and two or more
independent variables. Eating more vegetables and fruits leads to weight loss, glowing
skin, and reduces the risk of many diseases such as heart disease.

Directional Hypothesis
It shows how a researcher is intellectual and committed to a particular outcome. The
relationship between the variables can also predict its nature. For example- children aged
four years eating proper food over a five-year period are having higher IQ levels than
children not having a proper meal. This shows the effect and direction of the effect.

Non-directional Hypothesis
It is used when there is no theory involved. It is a statement that a relationship exists
between two variables, without predicting the exact nature (direction) of the relationship.

Null Hypothesis
It provides a statement which is contrary to the hypothesis. It’s a negative statement, and
there is no relationship between independent and dependent variables. The symbol is
denoted by “HO”.

Associative and Causal Hypothesis

Associative hypothesis occurs when there is a change in one variable resulting in a change
in the other variable. Whereas, the causal hypothesis proposes a cause-and-effect
interaction between two or more variables.

Examples of Hypothesis
Following are the examples of hypotheses based on their types:

• Consumption of sugary drinks every day leads to obesity is an example of a simple

hypothesis.
• All lilies have the same number of petals is an example of a null hypothesis.

27
• If a person gets 7 hours of sleep, then he will feel less fatigue than if he sleeps less. It is
an example of a directional hypothesis.

Functions of Hypothesis
Following are the functions performed by the hypothesis:

• Hypothesis helps in making an observation and experiments possible.

• It becomes the start point for the investigation.
• Hypothesis helps in verifying the observations.

Chi-Square Test: For the proposed study the following hypothesis are framed and their
validity tested through research techniques. A chi-square test is used to estimate how
likely the observations that are made would be, by considering the assumption of the null
hypothesis as true.

A hypothesis is a consideration that a given condition or statement might be true, which

we can test afterwards. Chi-squared tests are usually created from a sum of squared
falsities or errors over the sample variance.

stands for probability here. To calculate the p-value, the chi-square test is used in
statistics. The different values of p indicate the different hypothesis interpretation, are
given below:

• P≤ 0.05; Hypothesis rejected

• P>.05; Hypothesis Accepted
Probability is all about chance or risk or uncertainty. It is the possibility of the outcome
of the sample or the occurrence of an event. But when we talk about statistics, it is
more about how we handle various data using different techniques. It helps to represent
complicated data or bulk data in a very easy and understandable way. It describes the
collection, analysis, interpretation, presentation, and organization of data. The concept
of both probability and statistics is related to the chi-squared test formula.

The chi-squared test is done to check if there is any difference between the observed
value and expected value. The formula for chi-square can be written as;

28
or

χ2 = ∑(Oi – Ei)2/Ei

where Oi is the observed value and Ei is the expected value.

HYPOTHESIS 1:

H01(NULL HYPOTHESIS): There is no significant relation between using hydroelectric

power over other sources and balance of profit and service in KSEB.

H11 (ALTERNATE HYPOTHESIS): There is significant relation between using hydroelectric

power over other sources and balance of profit and service in KSEB.

HYPOTHESIS 2:

H02 (NULL HYPOTHESIS) : There is no significant relation between technical updation

and balance of profit and service in kseb.

H12 (ALTERNATE HYPOTHESIS): There is significant relation between between

technical updation and balance of profit and service in kseb

29
HYPOTHESIS 3
H03 (NULL HYPOTHESIS) : There is no significant relation between solar installations
at house and balance of profit and service at kseb

H13 (ALTERNATE HYPOTHESIS): There is significant relation between solar

installations at house and balance of profit and service at kseb

HYPOTHESIS 4
H04 (NULL HYPOTHESIS) : There is no significant relation between giving employee
allowances as per profit generated and balance of profit and service in kseb

H14 (ALTERNATE HYPOTHESIS): There is significant relation between giving employee

allowances as per profit generated and balance of profit and service in kseb

SAMPLE DESIGN AND SIZE

Data used here are taken as whole representing all customers across Kerala State The

analysis of interruptions have been done using the data collected on end consumers of very

feeder. A feeder is an 11 KV line which feeds supply from Substation to a Distribution

Transformer.

• Sample Population
The population includes all the employees of the Vydyuthi Bhavan, KSEB, Patton.
The total number of employees is 350.

• Sampling method
Non-Probability / non random sampling method is used for this study.
• Sample size
Sampling size is the number of elements to be included in study. In this study 50
employees of the Vidyuthi Bhavan, KSEB, Pattom will be used as the sample.

30
SAMPLE FRAME

SL Description Population Sample size Department

No: categorization
1 Employees 350 50 Finance and HRM : 8
Generation – Civil : 6
Generation- Electrical
and HRM :5
Transmission: 7
SO :5
Planning : 5
Distribution :4
safety :3
IT :1
SCM :6

Sampling technique
Convenient sampling technique was used to select the respondents who answered the
questionnaire. Sample convenient to the researcher.

Period of study
Period of study was 60 days from 22.10.2023 to 04.01.2024.
Source of data
The data for the project work was collected through two main sources namely
primary and secondary sources.

Primary data
The following are the primary methods used for data collection.
Questionnaire
(A Questionnaire is a research tool or survey instrument that consists of a set of
questions or prompts designed to gather information from individuals or groups of
people. It is a standardized way of collecting data from a large number of people by
asking them a series of questions related to a specific topic or research objective. The
questions may be open-ended or closed-ended, and the responses can be quantitative or
qualitative. Questionnaires are widely used in research, marketing, social sciences,
healthcare, and many other fields to collect data and insights from a target population.)

31
Primary data is collected through a non-disguised structured questionnaire.
Questionnaires were issued to the employees for acquiring the data.

Secondary data

The following secondary methods used for data collection.

• Software
• websites
Any information that is publicly available on the internet can be collected, and utilized
to establish a dataset. These pieces of information are then used to answer business
questions, power algorithms, and compete with other businesses.

Simple percentage analysis

It refers to special in of rates, Percentage are used in the comparison of two or more data.

Percentage method (%) = Number of respondents/Sample size × 100

This form of analysis look at raw streams of data in the form of percentage.

• Chi-square test

• Chi-Square, X2 = ∑(O-E)𝟐 / 𝑬

O = Observed value, E = Expected value

A chi-squared test (represented as χ2) is basically a data analysis on the basis of
observations of a random set of variables. Usually, it is a comparison of two statistical
data sets. This test was introduced by Karl Pearson in 1900 for categorical data analysis
and distribution. So it was mentioned as Pearson’s chi-squared test.

PICTORIAL REPRESENTATION

The pictograph is a method to represent the data using images. Each image in the
pictograph represents certain things. In other words, pictographs define the frequency of
the data using images or symbols, which are relevant to the data. The pictograph is
extremely easy to understand, and it is one of the simplest ways to represent the statistical
data. In the pictograph, we use a key, which denotes the value of the symbol. While using
symbols or images, all the symbols should be of the same size.

32
 Advantages of Using Pictographs

Some of the important advantages of using Pictographs are as follows:

• Pictographs are used to express large information in a simple manner.

• It is easy to read, as all the information is provided at one glance.
• It does not require more explanation, as it is universally used.

• It attracts the attention of the viewers or readers, as it has many attractive images.

The following pictorial representations were made use during the data analysis of the
project.

1. Pie diagram.
2. Bar diagram.

A bar chart or graph is a prevalent two-dimensional graph consisting of rectangular bars.

The bars, each representing a category, have lengths that correspond to the frequency of
the category.

A pie chart is a circular chart that displays percentages as a part-to-whole as though they
were pie slices. Each data category is related to a single slice. In a pie chart, the slice size
corresponds with the proportion of the category compared to the whole pie.

Following are the factors relating to the Service oriented functions in KSEB on value
system identified during the literature review of the project and the same factors were
incorporated in the questionnaire. From the factors, four variables have been identified
and used in the study.

33
Factors used in the study

1. Production cost
2. Customer satisfaction
3. Home installations, like solar.
4. Purchasing power of KSEB.
5. Dividends provided to employees.
6. Rate of increase in electricity charge per year.
7. Differentiating consumers according to consumption.
8. Profit generated per year.
9. Introduction of new technologies.
10. Undertaking new projects

During the study, the variables have been aligned separately.

Variables selected for Study

1.Projects undertaken by KSEB. (factor no.10)
2. Differentiating consumers according to consumption (factor no.7)
3.Purchasing power. (factor no.4)
4.Profit generated per year. (factor no.8)

Research instrument

Non disguised structured questionnaire was used for the study. A questionnaire consists
of number of questions presented or typed in a definite order or a form or set of forms.
Questionnaires were given to the employees of KSEB, who are expected to read and
understand the questions.

The questionnaire consists of two parts, Part A which includes the personal profile of the
respondent and Part B which is comprised of 10 variables related to the Study.

Variables were rated using 5-point Likert’s scale.

34
Sufficient care is taken to avoid lengthy questions leading to interrogations and
estimates. The questionnaire is pretested revised and finally drafted for the survey. The
answer provided by them constitutes the data for the research.

Limitation of study

The study is subject to the following limitations,

• The study is limited to only some of the levels in the organization; hence it may not be
universally applied to the organization as a whole.

• Since the nature of the study and the complexity entails a greater depth in study for which
sufficient time was not available, time factor is also one of the limitations to the study.

• It is assumed that answers given by the employees are true and adequate; therefore, the study is a
representative of the employee’s opinions.

35
 DATA ANALYSIS AND INTERPRETATION

36
DATA ANALYSIS AND INTERPRETATION

Percentage analysis

Table shows the age group of the respondents

AGE NO: OF RESPONDENTS PERCENTAGE

Below 25 07 14 %

25-35 29 58 %

36-45 09 18 %

Above 45 05 10 %

TOTAL 50 100 %

Chart shows the age of the respondents

AGE GROUP

Total

Above 45

36-45

25-35

Below 25

0 20 40 60 80 100 120

Percentage No of respondents

37
Interpretation:

From the above table it is inferred that 18% of respondents are under the age group of
below 25, 58% of respondents are under the age group of 25-35, 14 % of the respondents
are under the age group of 36-45 and 10% of respondents are under the age group above
45.

Table shows the Gender of respondents

GENDER NO: OF RESPONDENTS PERCENTAGE

MALE 15 30 %

FEMALE 35 70 %

TOTAL 50 100 %

Pie chart shows the gender of respondents

SALES

Male 30%

Female 70%

38
Interpretation

From the above table it is inferred that 30% of the respondents are Male and 70% of
respondents are Female.

Table shows that the projects and initiatives taken by kseb will influence the
balance of profit and service.

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 28 56 %

AGREE 10 20 %

NEUTRAL 06 12 %

DISAGREE 03 06 %

STRONGLY DISAGREE 03 06 %

TOTAL 50 100 %

Chart shows the projects and initiatives taken by kseb will influence the balance of
profit and service

39
 Projects and intiatives taken by KSEB
Total

Strongly…

Disagree

Neutral

Agree

Strongly…

0 20 40 60 80 100 120

PERCENTAGE NO OF RESPONDENTS

Interpretation:
From the above table it is inferred that 56 % of respondents strongly agree that
initiatives for new projects are taken by KSEB and existing projects are upgraded
periodically for benefit the consumers. It is more service oriented than making profit.,
20% of the respondents agree, 12% neutral, 6% disagree and 6% of the
respondents strongly disagree that initiatives and steps are not taken for the service
purpose.

Table shows that solar installations at houses will influence the balance of profit
and service at kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 10 20 %

AGREE 32 64 %

NEUTRAL 05 10 %

DISAGREE 02 04 %

STRONGLY DISAGREE 01 02 %

TOTAL 50 100%

40
Chart shows that in house installations like solar will influence the service-oriented
function of kseb

HOUSE INSTALLATIONS
160
140
120
100
80
60
40
20
0
Strongly Agree Agree Neutral Disagree Strongly Total
Disagree

NO OF RESPONDENTS PERCENTAGE

Interpretation:
From the above table it is inferred that 20 % of respondents strongly agree with
that in house installations like solar will influence the service oriented function of
kseb, 64 % of the respondents agree, 10 % neutral, 4 % disagree and 2 % of the
respondents strongly disagree .

Table shows that employee’s job satisfaction can improve service-oriented

operations management in kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 29 58 %
AGREE 10 20 %
NEUTRAL 06 12 %

DISAGREE 05 10 %
STRONGLY DISAGREE 00 00 %
TOTAL 50 100%

41
Chart shows that employee’s job satisfaction can improve service oriented operations
management in kseb

70%

60% 58%

50%

40%

30%
20%
20%
12%
10%
10%
0%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation:

From the above table it is inferred that 58% of respondents strongly agree that
employee’s job satisfaction can improve service oriented operations management in
kseb, 20 % of the respondents agree, 12 % were neutral, 10 % disagree and 0 % of
the respondents strongly disagree

42
Table shows consumer classification will affect the balance of profit and service
in kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 10 20%

AGREE 27 54 %

NEUTRAL 05 10 %

DISAGREE 05 10 %

STRONGLY DISAGREE 03 06 %

TOTAL 50 100%

Chart shows that consumer classification will affect the balance of profit and service
in kseb

43
Interpretation:
From the above table it is inferred that 14 % of respondents strongly agree
differentiating consumers as per their electricity usage is influencing the service
oriented nature of kseb, 60 % of the respondents agree, 8 % were neutral, 12 %
disagree and 6 % of the respondents strongly disagree.

Table shows that buying electricity from outside will affect the balance of profit
and service in kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 20 40 %

AGREE 15 30 %

NEUTRAL 7 14 %

DISAGREE 06 12 %

STRONGLY DISAGREE 02 4%

TOTAL 50 100%

Chart shows that buying electricity from outside will affect the balance of profit and
service in kseb

ELECTRICITY FROM OUTSIDE

NO OF RESPONDENTS PERCENTAGE
100
50
40

30
20

15

14

12
7

4
2

STRONGLY AGREE NEUTRAL DISAGREE STRONGLY TOTAL

AGREE DISAGREE

44
Interpretation:
From the above table it is inferred that 50 % of respondents strongly agree the
purchasing of electricity from other states and companies will affect the service-oriented
nature of kseb, 25 % of the respondents agree, 15 % were neutral, 6 % disagree and 4 %
of the respondents strongly disagree.

Table shows the effect of government laws will affect affect the balance of profit
and service in kseb

OPINION NO: OF PERCENTAGE

RESPONTENT
STRONGLY AGREE 20 40 %
AGREE 23 46 %
NEUTRAL 03 6%
DISAGREE 3 6%
STRONGLY DISAGREE 01 2%
TOTAL 50 100%

Chart showing the effect of that government laws will affect affect the balance of profit
and service in kseb

Government Laws

DISAGREE

NEUTRAL

AGREE

STRONGLY AGREE
PERCENTAGE NO: OF RESPONTENT
0 5 10 15 20 25

45
Interpretation:
From the above table it is inferred that 40 % of respondents strongly agree that the
central and state protocol on energy management are strictly followed by institution,
46 % of the respondents agree, 06 % were neutral, 06 % disagree and 02 % of the
respondents strongly disagree.

Table shows that giving employee allowances as per profit generated will affect
the balance of profit and services in kseb

OPINION NO: OF PERCENTAGE

RESPONTENT
STRONGLY AGREE 20 40 %

AGREE 09 18 %

NEUTRAL 08 16 %

DISAGREE 08 16 %

STRONGLY 05 10 %
DISAGREE
TOTAL 50 100%

Chart shows that giving employee allowances as per profit generated will affect the
balance of profit and services in kseb.

Employee Allowances

Total
Strongly…
Diasagree
Neutral
Agree
Stongly Agree
0 10 20
#REF! 30 40
NO OF RESPONDENTS 50 60

46
Interpretation:

From the above table it is inferred that 40 % of respondents strongly agree that
dividends given to employees are related to the balancing of profit earned and service
providing nature of kseb , 18 % of the respondents agree , 16 % were neutral, 16 %
disagree and 10 % of the respondents strongly disagree.

Table shows that profit earned will affect the service provision profit generated
influences the extend of service-oriented nature of kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 30 60

AGREE 10 20

NEUTRAL 08 16

DISAGREE 02 4

STRONGLY DISAGREE 00 00

TOTAL 50 100%

Chart shows that profit generated influences the extend of service-oriented nature of
kseb

PROFIT EARNED
70
NO: OF RESPONDENT PERCENTAGE
60
50
40
30
20
10
0
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY TOTAL
AGREE DISAGREE

47
Interpretation:
From the above table it is inferred that 60 % of respondents strongly agree that the
profit generated influences the extend of service-oriented nature of kseb, 20 % of the
respondents agree, 16 % were neutral, 04 % disagree and 00 % of the respondents
strongly disagree.

Table shows that the usage of hydroelectric power over other resources will affect
the balance of profit and service in kseb

OPINION NO: OF PERCENTAGE

RESPONTENT
STRONGLY AGREE 15 30

AGREE 28 56

NEUTRAL 04 08

DISAGREE 02 4

STRONGLY DISAGREE 1 2

TOTAL 50 100%

Chart showing the usage of hydroelectric power over other resources will affect the
balance of profit and service in kseb

USAGE OF HYDRO ELECTRIC

POWER OVER OTHER
Percentage No of Respondents

Total
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree

0 20 40 60 80 100 120
Interpretation:
From the above table it is inferred that 30% of respondents strongly agree that the
renewable energy source usage like hydroelectric power plants will reduce
additional expenditure incurred and will improve funds channelizing to service
provision , 56 % of the respondents agree , 08 % were neutral , 04 % disagree and 2
% of the respondents strongly disagree

Table shows that the operation control measures followed by kseb will affect the
balance of profit and service in kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 15 30 %

AGREE 25 50 %

NEUTRAL 03 6%

DISAGREE 05 10 %

STRONGLY DISAGREE 03 06 %

TOTAL 50 100%

Chart shows that the operation control measures followed by kseb will affect the balance
of profit and service in kseb.

OPERATION CONTROL

Disagree
Neutral
Agree
Strongly Agree

0 10 PERCENTAGE
20 NO OF RESPONDENTS
30 40 50 60
Interpretation:
From the above table it is inferred that 30 % of respondents strongly agree that the
operation control measures followed by kseb will improve service oriented
functioning , 50 % of the respondents agree, 6 % were neutral, 10 % disagree and 6
% of the respondents strongly disagree.

Table shows that the employee training will affect t the balance of profit and service
in kseb

OPINION NO: OF PERCENTAGE

RESPONTENT
STRONGLY AGREE 30 60 %

AGREE 09 18 %

NEUTRAL 06 12 %

DISAGREE 03 06 %

STRONGLY DISAGREE 02 04 %

TOTAL 50 100%

Chart showing the employee training will affect t the balance of profit and service in kseb

Employee Training

Total

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree
PERCENTAGE NO OF RESPONDENTS
0 20 40 60 80 100 120
Interpretation:
From the above table it is inferred that 60 % of respondents strongly agree that the
effective implementation of emergency plan and awareness to employees will reduce
the business profit-oriented nature of KSEB even though it is a company. Focus will
remain on how to provide the consumers a high-quality service, 18 % of the
respondents agree, 12 % were neutral, 06 % disagree and 04 % of the respondents
strongly disagree.

Table shows that the facility management will influence the balance of profit
and service in kseb

OPINION NO: OF PERCENTAGE

RESPONDENT
STRONGLY AGREE 31 62 %

AGREE 07 14 %

NEUTRAL 02 04 %

DISAGREE 06 12 %

STRONGLY 04 08 %
DISAGREE
TOTAL 50 100%

Chart showing facility management will influence the balance of profit and service in
kseb

FACILITY MANAGEMENT
70%
62%
60%
50%
40%
30%
20% 14% 12%
10% 8%
4%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation:
From the above table it is inferred that 64 % of respondents strongly agree that the
effective facility management in KSEB in terms of upkeeping and maintenance of
equipment , building , utilities will improve efficiency of service provided by it, 14 % of
the respondents agree , 04 % were neutral , 12 % disagree and 08 % of the respondents
strongly disagree.

Table shows that the grid and pool management will influence the balance of
service and profit in kseb

OPINION NO: OF PERCENTAGE

RESPONTENT
STRONGLY AGREE 40 80%
AGREE 7 14%
NEUTRAL 03 06 %
DISAGREE 00 00 %
STRONGLY 00 00 %
DISAGREE
TOTAL 50 100%

Chart showing the grid and pool management will influence the balance of service and
profit in kseb

GRID MANGEMENT
DISAGREE

NEUTRAL

AGREE

STRONGLY AGREE

0 5 10 15 20 25 30 35 40 45

PERCENTAGE NO: OF RESPONTENT

Interpretation:
From the above table it is inferred that 80 % of respondents strongly agree that the
effective management in grid system will improve service margin, 14 % of the
respondents agree, 06 % were neutral , 00 % disagree and 00 % of the respondents
strongly disagree.

Table shows that the effective transmission control and monitoring improve balance
of profit and service in kseb

OPINION NO: OF RESPONDENT PERCENTAGE

STRONGLY AGREE 08 16 %

AGREE 15 30 %

NEUTRAL 10 20 %

DISAGREE 08 16 %

STRONGLY DISAGREE 09 18 %

TOTAL 50 100%

Chart showing the effective transmission control and monitoring improve balance of
profit and service in kseb

Effective Transmission
PERCENTAGE NO OF RESPONDENTS

Disagree

Neutral

Agree

Strongly Agree

0 5 10 15 20 25 30 35
Interpretation:
From the above table it is inferred that 16 % of respondents strongly agree the effective
transmission control and monitoring improve balancing of profit and service provision , 30 % of the
respondents agree, 20 % were neutral, 16 % disagree and 18 % of the respondents strongly disagree.
.
Table shows that technical updation will affect the balance of profit and service in kseb

OPINION NO: OF RESPONDENT PERCENTAGE

STRONGLY AGREE 30 60 %
AGREE 10 20 %
NEUTRAL 05 10%
DISAGREE 03 6%
STRONGLY DISAGREE 02 4%
TOTAL 50 100%

Chart showing the technical updation will affect the balance of profit and service in kseb

Technical Updation

Disagree

Neutral

Agree

Strongly Agree

0 10 20 30 40 50 60 70

PERECNTAGE NO OF RESPONDENT

54
Interpretation:
From the above table it is inferred that 60 % of respondents strongly agree that introducing new
technologies will enhance the service-oriented operations management in kseb, 20 % of the
respondents agree, 10 % were neutral, 06 % disagree and 04% of the respondents strongly disagree

Table shows that operations management is essential for balance of profit and service in kseb

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 28 56 %

AGREE 12 24 %

NEUTRAL 00 00 %

DISAGREE 06 12 %

STRONGLY DISAGREE 04 08 %

TOTAL 50 100%

Chart showing the operations management is essential for balance of profit and service

Operation Management

Total 50 100

Strongly Disagree 48
Disagree 6 12
Neutral 0
0
Agree 12 24

Strongly Agree 28 56

0 20 40 60 80 100 120

Column1 PERCENTAGE NO OF RESPONDENT

55
Interpretation:
From the above table it is inferred that 56 % of respondents strongly agree that effective
operations management is essential for improving profit and service management and control,
24 % of the respondents agree, 00 % were neutral , 12 % disagree and 08 % of the respondents
strongly disagree.

Table shows that transmission loss will affect the balance of service and profit in kseb

OPINION NO: OF RESPONDENT PERCENTAGE

STRONGLY AGREE 30 60%
AGREE 10 20 %
NEUTRAL 2 4%
DISAGREE 4 8%
STRONGLY DISAGREE 04 8%
TOTAL 50 100%

Chart showing the transmission loss will affect the balance of service and profit in kseb

Transmission Loss

Total

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0 20 40 60 80 100 120

Column1 PERCENTAGE NO OF RESPONDENTS

56
Interpretation:
From the above table it is inferred that 60 % of respondents strongly agree that reducing
transmission waste from each lines will reduce cost incurred by kseb to a very large extend, such
that the profit may itself become large enough to provide more service to consumers, 20 % of
the respondents agree, 4 % were neutral, 08 % disagree and 08 % of the respondents strongly
disagree.

CHI-SQUARE ANALYSIS

1. HYPOTHESIS BETWEEN PROJECTS UNDERTAKEN BY KSEBL AND SERVICE

ORIENTED OPERATIONS MANAGEMENT

H01 (NULL HYPOTHESIS) : There is no significant relation between using hydroelectric power
over other sources and balance of profit and service in kseb.
H11 (ALTERNATE HYPOTHESIS): There is significant relation between using hydroelectric
power over other sources and balance of profit and service in kseb.

QUESTION No:1 Do you believe There is significant relation between using hydroelectric power
over other sources and balance of profit and service in kseb

TABLE SHOWS CHI-SQUARE TEST 1

OPINION NO: OF RESPONTENT PERCENTAGE

STRONGLY AGREE 14 28
AGREE 29 58
NEUTRAL 04 08
DISAGREE 03 06
STRONGLY DISAGREE 00 00

57
 TOTAL 50 100%
OBSERVED EXPECTED (𝑶 − 𝑬)𝟐
OPTIONS (O) (E) O-E
𝑬
STRONGLY
14 10 4 1.6
AGREE
AGREE 29 10 19 36.1
NEUTRAL 04 10 -06 3.6
DISAGREE 03 10 -07 4.9
STRONGLY
00 10 -10 10
DISAGREE
TOTAL 50 50 56

Chi-Square, X2 =

Finding table value

Degree of freedom = n-1 = 5-1 = 4
Level of significance = 0.05
Table Value, (𝑡𝑣) = 9.488
Calculated Value, (𝑡𝑐) = 43.80
Here 𝑡𝑐 > 𝑡𝑣 , Therefor alternate hypothesis, H1 is accepted.

INTERPRETATION:
From the hypothesis calculated value is 43.80 is greater than table value 9.488, hence alternate
hypothesis is accepted and null hypothesis rejected. So here proved that there is significant relation
There is significant relation between using hydroelectric power over other sources and balance of
profit and service in kseb

58
 2. HYPOTHESIS BETWEEN TECHICAL UPDATION AND BALANCE OF PROFIT

H02 (NULL HYPOTHESIS) : There is no significant relation between technical updation and
balance of profit and service in kseb

H12 (ALTERNATE HYPOTHESIS): There is significant relation between between technical

updation and balance of profit and service in kseb.

QUESTION No:2 Do you agree that technical updation plays a huge role in balance of profit and
service in kseb.

. TABLE SHOWS CHI-SQUARE TEST 2

OBSERVED EXPECTED (𝑶 − 𝑬)𝟐

OPTIONS (O) (E) O-E
𝑬
STRONGLY
AGREE 07 10 03 009

AGREE 30 10 20 400

NEUTRAL 04 10 -06 030

DISAGREE 06 10 -04 016

STRONGLY
DISAGREE 03 10 -07 049

TOTAL 50 50 51

59
Chi squareX2 =
𝑬
Finding table value
Degree of freedom = n-1 = 5-1 = 4
Level of significance = 0.05
Table Value, (𝑡𝑣) = 9.488
Calculated Value, (𝑡𝑐) = 51.00

Here 𝑡𝑐 > 𝑡𝑣 , Therefor alternate hypothesis, H1 is accepted.

Interpretation:
From the hypothesis calculated value is 51.00 is greater than table value 9.488, hence alternate
hypothesis accepted and null hypothesis rejected. So here proved that there is significant relation
between technical updation and balance of profit.

3. HYPOTHESIS BETWEEN NEW PROJECTS UNDERTAKEN BY KSEB AND SERVICE

PROVIDED.

H03 (NULL HYPOTHESIS) : There is no significant relation between new projects undertaken
by KSEB and new service provided.

H13 (ALTERNATE HYPOTHESIS): There is significant relation between new projects

undertaken by KSEB and new service provided.

QUESTION No:3 Do you believe that there is a relation between new projects undertaken by
KSEB and new service provided.

60
TABLE SHOWS CHI-SQUARE TEST 3

OBSERVED EXPECTED (𝑶 − 𝑬)𝟐

OPTIONS (O) (E) O-E
𝑬
STRONGLY
25 10 15 225
AGREE
AGREE 10 10 00 000
NEUTRAL 10 10 00 000
DISAGREE 03 10 -07 049
STRONGLY
02 10 -08 064
DISAGREE
TOTAL 50 50 34

Chi-Square, X2 =
𝑬
Finding table value
Degree of freedom = n-1 = 5-1 = 4
Level of significance = 0.05
Table Value, (𝑡𝑣) = 9.488
Calculated Value, (𝑡𝑐) = 33.80

Here 𝑡𝑐 > 𝑡𝑣 , Therefor alternate hypothesis, H1 is accepted.

Interpretation:
From the hypothesis calculated value is 33.80 is greater than table value 9.488, hence alternate
hypothesis accepted and null hypothesis rejected. So here proved that there is significant relation
between new projects undertaken by KSEB and new service provided.

61
4. HYPOTHESIS BETWEEN PROPER TRAINING AND EMPLOYEES’ EFFICIENCY

H04 (NULL HYPOTHESIS) : There is no significant relation between proper training and
employees efficiency.

H14 (ALTERNATE HYPOTHESIS): There is significant relation between proper training and
employee’s efficiency.

QUESTION No:4 Do you agree that the training programmes given to the employees increase
their efficiency and profit generation in KSEB.

TABLE SHOWS CHI-SQUARE TEST 4

OBSERVED EXPECTED (𝑶 − 𝑬)𝟐

OPTIONS (O) (E) O-E
𝑬
STRONGLY
35 10 25 625
AGREE
AGREE 08 10 -02 040
NEUTRAL 05 10 -05 025
DISAGREE 02 10 -08 064
STRONGLY
00 10 -10 100
DISAGREE
TOTAL 50 50 81.80

Chi-Square, X2 = =82

Finding table value

Degree of freedom = n-1 = 5-1 = 4

62
Level of significance = 0.05
Table Value, (𝑡𝑣) = 9.488
Calculated Value, (𝑡𝑐) = 82

Here 𝑡𝑐 > 𝑡𝑣 , Therefor alternate hypothesis, H1 is accepted.

Interpretation:
From the hypothesis calculated value is 82 is greater than table value 9.488, hence alternate
hypothesis accepted and null hypothesis rejected. So here proved that there is significant relation
between proper training and employee’s efficiency.

63
 CHAPTER 5

FINDINGS

64
 Kerala, the vibrant southern state of India, achieved a historic
milestone in its pursuit of progress and development. On the 29th day of May in 2017,
Kerala proudly declared itself as India's first fully electrified state. This remarkable
achievement was made possible through the tireless efforts of the Kerala State Electricity
Board (KSEB) and the unwavering commitment of the state government.

The journey towards total electrification began in earnest when the Government of Kerala, in June
2016, set forth an ambitious mission: to electrify every household in the state by March 2017. The
overarching goal was to provide seamless access to electricity by ensuring last-mile connectivity. To
achieve this, the distribution network was expanded wherever possible, and for remote colonies or
habitats where extension was not feasible, innovative solutions such as Decentralized & Distributed
Generation (DDG) and Micro Grids were proposed.

One of the initial challenges faced was the identification of beneficiaries, as accurate data on
unelectrified households was not readily available. To address this, multiple channels for registration
were opened. Beneficiaries could register directly at local electrical section offices or through elected
representatives. The creation of the web portal "Power For All," developed indigenously, played a
pivotal role, with more than 1.52 lakh applicants registering for the project. Among them,
approximately 1.2 lakh applicants belonged to the Below Poverty Line (BPL) category, while SC and
ST applicants numbered 32,000 and 17,500, respectively. This achievement underscored the project's
success in providing electricity to underprivileged segments of society.

To expedite the process and reduce hardships faced by beneficiaries, the Kerala State Electricity
Regulatory Commission (KSERC) approved simplified application procedures and forms
recommended by KSEBL, in line with the government's directive. This meant that electricity
connections could be granted based on a minimum of two documents: proof of identity and proof of
ownership. The rules were further liberalized when KSEBL issued an order, again in line with
government directives, to release electricity connections to residential structures with a plinth area of
more than 100 square meters without insisting on proof of ownership.

In 2009, Palakkad earned the distinction of becoming India's first completely electrified district. Over
the next two years, Thrissur, Ernakulam, and Alappuzha also achieved this remarkable status. During
this period, 85 legislative assembly constituencies achieved full electrification.

It's noteworthy that the norms set by the central government for rural electrification require at
least two public utilities to be electrified in villages, along with ensuring that at least 10% of
total households have access to power. Kerala surpassed these benchmarks several years ago.

65
 However, the state government remained steadfast in its commitment to providing electricity
to all Anganwadi’s and households. Kerala accomplished this remarkable feat at a time when
nearly 4,000 villages and 4.5 crore households in the country still awaited access to electricity.

Kerala's journey to becoming India's first fully electrified state stands as a testament to its
dedication to inclusive development and its commitment to improving the lives of its citizens.
Through innovative solutions, efficient governance, and unwavering determination, Kerala
has set a shining example for the rest of the nation to follow on the path to total electrification.

• Most people believe that project upgradation will increase the profit generation of the
company.
• House installation like solar power and new technologies will have a positive impact
on the profit generation of the organization.
• Employee satisfaction will increase the attachment of the employees towards the
organization which in term increase the profit generation of the organization.
• Buying electricity during unexpected calamities which will help the employee to
remain attached to the organization.
• Government laws plays a predominant role in the revenue generation of the
organization.
• State like that of Kerala is abundant in water resources which will improve the
production if it is properly utilized.
• Proper maintain of grid and pool management will help in the time of crisis.
• Technical updation will have a positive impact on the organization.
• Employee training will make the employees aware of their role which I term increase
the production which often result in production of maximum output with minimum
utilization of resource.

66
 Some of the challenges faced by KSEB nowadays are:

• The open access regime and promotion of decentralized renewable energy generation, which are
eroding the cream of its consumer base and could lead to a steep tariff hike2.
• The introduction of the Indian Telecommunications Act, which replaces the Indian Telegraph Act
and imposes new rules and regulations for laying power lines across private properties.
• The frequent occurrence of natural disasters, such as floods and storms, which damage the
infrastructure and cause power outages.

some of the steps taken to face challenges in KSEB are:

• Forming an anti-power theft squad (APTS) to detect and prevent pilferage and misuse of electricity
in all districts1.
• Seeking approval and compensating landowners for laying new power lines or stay cables across
private properties as per the Indian Telecommunications Act2.
• Exploring alternative sources of energy such as solar and wind to reduce dependence on hydel and
coal-based stations13.
•

67
 CHAPTER 6
RECOMMENDATIONS

68
How Kerala can transition to a sustainable and affordable energy future

Solar floating plants in Cochin airport

As the world transitions to clean energy, India is at an advantage with its large solar generation
potential. However, one state where this edge has been underutilised is the southern state of Kerala.
It has set itself a modest target of 1870 MW of solar power by 2022, which is about 1% of India’s
175 GW target. But as of March 2020, the state had an installed capacity of 185 MW, which is less
than 10% of its 2022 target. One reason for this could be Kerala’s high urbanization rate and related
land constraints that limit the potential for large solar parks, as has been attempted in other parts of
the country.

In 2018-19, over 75% of the state’s power needs was met from purchases from other states costing
Kerala Rs. 7869.32 crore, (roughly six times its health budget for the same year.) Much of these
purchases were to meet peak power demand, which was 4316 MW in April 2019. This is rather
low, in comparison with say, Delhi, which has a peak of 7409 MW in 2019. That said, Kerala’s
electricity demand is projected to increase by 1.5 times in the next five years, which should be
manageable for a state with a culture of robust forward planning.

Almost all generation within Kerala is from hydropower. The state continues to prioritise this
sector, targeting the commissioning of ten plants expected to generate 278.5 MW by March 2022.
However, given Kerala’s fragile ecology, and the increased occurrence of extreme climate events
like the floods of 2018, the continued reliance on hydropower is at the very minimum,
questionable.

The COVID-19 pandemic has posed multiple challenges to the state’s finances, and a forward-
looking strategy for Kerala’s power sector is needed. We offer below, a few suggestions that can

69
help Kerala reduce its current high power purchase costs, while also transitioning to a sustainable
and affordable energy future.

1. Cutting KSEB’s losses

Even while the Kerala State Electricity Board’s (KSEB) overall performance is getting better lately,
the financial losses of KSEB mirror those faced by other state-owned power distribution companies.
Nearly two-thirds of KSEB’s annual expenses is on purchasing power. These costs could be
significantly reduced by tapping into the growing cost-competitiveness of Renewable Energy (RE),
prioritizing Demand Side Management (DSM) and attempting energy efficiency (EE) interventions
to ensure long-term resilience. DSM refers to policy interventions to change usage patterns of
electricity consumers to use power efficiently.

Loss-making purchase agreements with power plants need to be looked at urgently. For instance,
KSEB pays Rs 100 crore as fixed charges annually for power from a standby plant. The Rajiv
Gandhi Combined Cycle Power Plant (RGCCPP) – a Union Government-owned gas-based facility
in Kayamkulam is used only during peak load periods, and has been acknowledged to be inefficient
by KSEB, due to the high cost and unreliable supply of imported naphtha.

We propose that KSEB’s current planning approach must evolve to include an Integrated Resources
Plan (IRP). IRP refers to careful least-cost combination of supply and end-use efficiency measures
to meet demand during a specific period while integrating environmental protection, reliability, and
developmental objectives. The IRP process would enable KSEB and other government agencies to
take a holistic overview of the supply-side constraints, demand-side requirements and Kerala’s
unique topography, environmental and social characteristics.

Alternatives to rooftop solar

In addition to rooftop solar, utility-scale energy storage can address the RE-integration concerns
expressed in Kerala’s power policy. This means deploying medium to large sized grid-connected
batteries that can store energy and integrate different RE sources.

One of the RE sources Kerala has embraced to bridge the land constraints gap is Floating Solar
Photo Voltaic (FSPV) panels. FSPV has emerged as a promising technology to produce RE in a
land-scarce but water-rich state. Kerala has 517 MW of FSPV projects in the pipeline.

Guidelines for floating solar panels

However, there are no Environment Impact Assessment (EIA) guidelines for FSPVs in India.
Kerala must consider the potential environmental and social implications from these floating solar
panels on an already fragile ecology. The state can be a front-runner here and develop guidelines

70
and formulate a policy for FSPV projects given the administrative challenges of ownership and
control over water reservoirs and potential conflicts with hydropower generation.

The potential for developing a wind-solar hybrid park in Ramakkalmedu and Pushpakandam in
Idukki district has been assessed by the National Institute of Wind Energy (NIWE) and Agency for
Non-conventional Energy and Rural Technology (ANERT). Similarly, offshore wind could be
explored. According to ANERT, with wind speeds of up to 8-9 meters per second off Kerala’s
southern coast, there is immense untapped potential for offshore wind energy in the state. The new
Kerala government must prioritise such opportunities, kickstarting it with long-term techno-
financial feasibility studies with the aim to continue exploring RE sources suited to the state’s
circumstances.

Make buildings and urban spaces energy efficient

Energy efficiency interventions require a paradigmatic shift in how town planners conceive the
future of our cities and towns –as electricity guzzlers, or as power conservers. For instance, builders
could be mandated to use only energy efficient elevators, or LED lights in common areas. There is a
whole range of demand-side interventions that Kerala can champion as India’s energy needs expand
exponentially.

Buildings consume more than half of total electricity consumed in the state. Local Self
Government Institutions (LSGIs) can put in systems to reduce buildings’ energy use. They can
initiate processes to evaluate the energy performance of their buildings to understand where power
could be saved. This system can be piloted across the six big cities - Thiruvananthapuram, Kollam,
Kochi, Thrissur, Kozhikode and Kannur. To incentivise EE, corporations could be awarded with
greater resource allocations, or commendations as an annual feature. This would also generate
public debate about ways to conserve power and sensitise people on the linkages between power
consumption and climate change.

Demonstrate local leadership and ownership in clean energy initiatives

Meenangadi panchayat’s carbon neutral commitment and Pilicode panchayat’s LED lighting
program in 2018 have demonstrated the transformative impact when LSGIs show leadership and
political will. The vulnerability of Meenangadi’ s agricultural sector to climate change, prompted
the panchayat to declare its commitment to achieving carbon neutrality. The panchayat prepared an
action plan to achieve this goal.

When Pilicode panchayat became the first “filament-free’’ panchayat in India, a term used to
describe absence of the once ubiquitous incandescent bulbs, it became an inspiration for a state-
wide scale-up of the initiative. In 2018, the Kerala Urja mission identified filament-free Kerala as
one of the five flagship initiatives aimed at integrated development of the state’s power sector.

More such efforts must be nurtured and scaled-up to achieve clean energy targets. They must be
buttressed with projects like carbon sequestering (for e.g. soil conservation, tree planting) and
adopting waste management.

71
Kerala’s energy mix and grid of the future must also prepare for rising demand for space cooling. A
study by WRI India of 129 three-bedroom (or more) households in Kochi found that on an average
these homes have three air-conditioners each. These numbers could easily be extrapolated to the
rest of the state, given Kerala’s significant urbanisation. DSM interventions like promotion of
energy efficient air-conditioners can help address cooling-related peak demand.

2. Train better, perform better.

The Kerala State Electricity Board (KSEB) has come out with a
training policy for its employees with the aim of enriching the “capability of human resources in
KSEB to maximise organisational effectiveness and customer satisfaction.”
The policy will come into effect in the 2017-18 fiscal.
A highlight of the policy is the introduction of a credit system for employees. Employees are
allocated credit points on successful completion of training programmes. The policy proposes that
every employee accumulates a specific number of credits and become eligible for further elevation
in his/her career, including the time-bound grade promotion.
It “guarantees quality training at all levels of employees to develop their potential and to empower
them with a view to maximising their output levels and thereby contributing to the total, inclusive,
customer friendly and integrated organisational growth,” the KSEB said in an order.
To enhance skill levels of the employees, the policy lays emphasis on providing opportunities for
training abroad as well as increasing the scope of industry-institution interaction.
The training policy is founded on the National Training Policy 2012 issued by the Department of
Personnel & Training (Training Division), Union Ministry of Personnel and the National Training
Policy for the power sector issued by the Power Ministry. The KSEB had constituted a committee
for formulating it.
3.Fix parameters
KSEB unions say that the management’s decision to fix parameters for a
performance-oriented appraisal of its staff can help improve the KSEB’s functioning, provided such
assessments are unbiased and do not jeopardise jobs.
The KSEB, which is in the process of corporatisation, has entrusted the State Government-
sponsored Centre for Management Development (CMD), Thycaud, with fixing the parameters for
monitoring the performance of its staff. Instead of banking on seniority, promotions and other perks
are to be decided on the basis of performance.
According to the KSEB, the exercise will be confined to officers, as they are responsible for
output. While the trade unions welcome the initiative, they are apprehensive about factors such as
impartial assessment and how the decision is going to reflect on job security.

4. KSEB should focus on improving its customer service by providing timely and efficient
services to its customers.

72
5.KSEB should invest in new technologies to improve its efficiency and reduce its costs.
6.KSEB should focus on renewable energy sources to reduce its carbon footprint and provide
clean energy to its customers.
7.KSEB should work on improving its infrastructure to provide uninterrupted power supply
to its customers.
8.KSEB should work on reducing its transmission and distribution losses to improve its
efficiency and reduce its costs.
9.KSEB should work on improving its billing and payment systems to make it easier for
customers to pay their bills and avoid disconnections.
10. KSEB should work on improving its grievance redressal mechanism to address customer
complaints and grievances in a timely and efficient manner.

73
 CHAPTER 7
CONCLUSION

74
Hydrogen project of KSEB: Nine firms present proposals
Nine companies have made presentations before a technical panel of the Kerala State Electricity
Board (KSEB) for establishing a pilot project for hydrogen production and storage. The
presentations were made last week in response to an Expression of Interest (EoI) invited by the
KSEB for hydrogen production using electrolysis or “other proven methods. “The proposals,
Power department officials said, will be evaluated by the technical committee.

While the KSEB plan is still in a nascent stage, the state-run utility has
identified its own land at the Brahmapuram Diesel Power Plant (BDPP) in Ernakulam district as a
possible location for the pilot project. According to the KSEB, the hydrogen produced can be
supplied to industries, or stored and converted to electricity during peak demand hours using fuel
cells. The KSEB had invited the EoI in September 2022 for setting up the hydrogen production
system.

In July last year, the KSEB director board had given the go-ahead for inviting
an EoI, observing that future energy systems would need large scale storage of electricity and that
hydrogen is one of the most promising options for storing energy from renewables. In December
2022, the KSEB had decided that the production facility would have a capacity of 500 kg per day.
The storage capability will be for 3500 kg. The KSEB also dropped an earlier option it had
explored where the hydrogen would be blended with natural gas as the KSEB lacks liquified
natural gas (LNG) plants or tie-ups with LNG firms. Eight firms had participated in the pre-bid
meet held on December 14, 2022.

75
 The National Award for Load Dispatch Centers has been conferred upon the Kerala State
Load Dispatch Centre (SLDC). These centers are pivotal institutions responsible for ensuring
the seamless and uninterrupted supply of electricity to consumers throughout the country, all
the while maintaining cost-effectiveness. This essential service is delivered at the state level
by SLDCs, at the regional level by RLDCs, and at the national level by NLDCs.

SLDCs, like Kerala's, hold the critical responsibility of determining the optimal electricity
production levels, including the source, timing, and volume, in alignment with the ever-
evolving demands for electricity. This decision-making process is influenced by factors such
as the electricity flow through transmission lines, transformer capacities, and the consistent
maintenance of voltage and frequency standards at each substation.

On the other hand, RLDCs and NLDCs are charged with the task of thoroughly reviewing the
interstate transmission network and power generation facilities, enabling them to efficiently
regulate electricity production in accordance with the requirements set by the respective
SLDCs.

The performance excellence of these load dispatch centers has a direct impact on the
efficiency of power distribution, the overall cost of electricity, and environmental issues
stemming from power outages.

To enhance the performance of all load dispatch centers across India, the Forum of Load
Dispatch (FOLD) has devised a strategy to evaluate and acknowledge their excellence. This
approach entails categorizing these centers into three distinct categories and establishing
specific criteria for the awards.

The criteria for these awards include factors such as voltage stability, adherence to area
control error limits, utilization of information technology, operator efficiency, training and
certification for adopting new technologies, preparedness through mock drills for emergency
situations, and portfolio management for streamlined operations.

A panel comprising esteemed experts in the field meticulously evaluated these criteria during
the International Conference of Power Systems held in November 2020 at IIT Kharagpur.
Consequently, Kerala SLDC emerged as the top-performing medium-sized SLDC in the
nation, earning this prestigious recognition.

The status of KSEB is as follows:

• KSEB has released its latest tariff order for 2023, which has been approved by the Kerala
State Regulatory Commission.

76
 • KSEB has launched a one-time settlement scheme for customers who have pending dues or
arrears, which is valid till December 31, 2023.
• KSEB has been investing in renewable energy sources, such as solar and wind, to reduce its
dependence on fossil fuels and provide clean energy to its customers.
• KSEB has been improving its infrastructure and technology to provide uninterrupted power
supply and reduce transmission and distribution losses1.
• KSEB has been providing online services, such as new connection, bill payment, complaint
registration, and mobile/email alerts, to its customers through its web self-service portal2.

KSEB has been monitoring the water levels of its main reservoirs and dams, which are crucial
for its hydroelectric power generation.

Some of the future projects of KSEB are:

• Mankulam Hydro Electric Project (40 MW): This project involves the construction of a
dam across the Mankulam river and a power house at Mankulam village in Idukki
district. The project is expected to generate 82 million units of energy annually.

• Global Industrial Finance and Trade City (GIFT City): This project aims to develop a
world-class industrial and financial hub in Kochi, with a focus on IT, biotechnology,
nanotechnology, and renewable energy sectors. The project will also include a smart city, a
convention centre, a trade zone, and a metro rail connectivity.

• Kerala Fibre Optic Network (KFON): This project aims to provide high-speed internet
connectivity to all households, government offices, and educational institutions in
Kerala. The project will also enable the delivery of various e-governance and e-learning
services to the citizens.

• Kochi Water Metro: This project involves the development of a water transport system in
Kochi, with a network of 15 routes and 78 stations. The project will use modern, eco-
friendly boats to provide fast and comfortable mobility to the commuters2.

77
 CHAPTER 8
ANNEXURE

78
 QUESTIONNAIRE

PART A

Name: ………...
Age….
 Below 25
 25-35
 36-45
 Above 45

Gender: ……
 Male
 Female

PART B

1.Whether solar installations at houses will influence the balance of profit and service at KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

2. Whether employee’s job satisfaction can improve service-oriented operations management in

KSEB.

79
  Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

3. Consumer classification will affect the balance of profit and service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

4.Whether buying electricity from outside will affect the balance of profit and service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

5.Whether government laws will affect affect the balance of profit and service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

80
6. Whether giving allowances as per profit generated will affect the balance of profit and service in
KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

7.Whether the usage 0f hydroelectric power over other resources will affect the balance of profit
and service in KSEB
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

8.Whether the operation control measures followed by kseb will affect the balance of profit and
service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

81
9. Whether the employee training will affect t the balance of profit and service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

10.Does facility management will influence the balance of profit and service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

11.Does the grid and pool management will influence the balance of service and profit in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

12.Whether the effective transmission control and monitoring improve balance of profit and service
in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

82
13.Whether the technical updation will affect the balance of profit and service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

14.Whether the transmission loss will affect the balance of service and profit in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
15. Whether the operation control measures followed by kseb will affect the balance of profit and
service in KSEB.
 Strongly Agree
 Agree
 Neutral
 Disagree

***********

83
 BIBLIOGRAPHY

84
 Bibliography

➢ Kerala State Electricity Board Limited-KSEB

➢ Google
➢ The Toyota way- Jeffrey K Liker
➢ [email protected]
➢ Study materials on operation management.
➢ Operations and Supply Chain Management Essentials You Always Wanted To Know
(Self-Learning Management Series)
➢ Hydrogen project of KSEB: Nine firms present proposals - The Hindu
➢ How Kerala can transition to a sustainable and affordable energy future
(thenewsminute.com)

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