KARNATAKA ELECTRICITY REFORM (TRANSFER OF UNDERTAKINGS OF KPTCL AND ITS PERSONNEL TO ELECTRICITY DISTRIBUTION AND RETAIL SUPPLY COMPANIES) RULES, 2002

 

PREAMBLE

Whereas, the draft of the Karnataka Electricity Reform (Transfer of undertakings of KPTCL and its personnel to Electricity Distribution and Retail Supply Companies) Rules, 2002 was published as required by Sections 14 and 15 read with Section 57 of the Karnataka Electricity Reform Act, 1999 (Karnataka Act No. 25 of 1999) in Notification No. DE 14 PSR 2002, dated 10th May, 2002, in Part IV-A of the Karnataka Gazette, Extraordinary, dated 10th May, 2002 inviting objections and suggestions from all persons likely to be affected thereby within fifteen days-from the date of publication of the draft in the Official Gazette.

Whereas, the said Gazette was made available to the public on 10th May, 2002.

And whereas, objections and suggestions received within the period specified above have been considered.

Now, therefore, in exercise of powers conferred by Sections 14 and 15 read with Section 57 of the Karnataka Electricity Reform Act, 1999 (Karnataka Act No. 25 of 1999), the Government of Karnataka makes the following rules, namely.

Rule - 1. Title, extent and commencement.

(1)     These rules may be called the Karnataka Electricity Reform (Transfer of Undertakings of KPTCL and its personnel to Electricity Distribution and Retail Supply Companies) Rules, 2002.

(2)     These rules shall extend to the whole of the territory of the State of Karnataka and also to assets, liabilities, personnel and proceedings of Karnataka Power Transmission Corporation Limited situated outside the State.

(3)     These rules shall come into force on the date of their publication in the Official Gazette.

Rule - 2. Definitions.

(1)     In these rules, unless there is anything repugnant in the subject or context.

(a)      "Act" means the Karnataka Electricity Reform Act, 1999 (Karnataka Act No. 25 of 1999);

(b)      "Area of Supply" means the area of distribution and retail supply of electricity in the specified zones and being in the case of BESCOM, Bangalore Zone; in the case of MESCOM, Mangalore Zone; in the case of GESCOM, Gulbarga Zone and in the case of HESCOM, Hubli Zone;

(c)      "Assets" shall include the distribution system, supports, motors, metering equipment, transformers, breakers, protective equipments, service connections, testing equipment or apparatus, signal systems, tools and plants, spares, computers, communication and telecommunication equipments, land, roads, culverts, bridges, rights of way, buildings, offices, stores, workshops, control rooms, sub-stations, laboratories and machinery, equipments, installations, furniture, fixtures, fittings, vehicles, residential quarters and guest-houses, recreation centres, dispensaries, hospitals and amenities and installations pertaining thereto, installations inside consumer premises and other moveable and immovable property, cash in hand, cash at bank, investments, options, book debts, corporeal and incorporeal, tangible and intangible assets in possession or reversion, present or contingent rights, permits, memberships, benefits, licences, consents, authorities, registrations, liberties, patents, trade marks, trade names, copyrights, designs and other intellectual property rights, and all other interests, debts and powers of every kind, nature and description whatsoever, privileges, easements, advantages, benefits and approvals, agency rights, quotas, subsidies, concessions, exemptions, contracts, deeds, schemes, bonds, agreements and other instruments and interests of whatever nature and wherever situate;

(d)      "Bangalore Zone" means the Bangalore Metropolitan Zone comprising of the Bangalore Metropolitan area and Bangalore Rural Zone comprising of the Operation and Maintenance Divisions of KPTCL existing in Bangalore Rural and Bangalore Urban, Tumkur, Kolar, Chitradurga and Davanagere Districts;

(e)      "BESCOM" means Bangalore Electricity Supply Company Limited, a company established by the Government of Karnataka and incorporated under the Companies Act, 1956, having its registered office at K.R. Circle, Bangalore-1;

(f)       "Cadre" has the meaning assigned to that term in the service regulations of KPTCL;

(g)      "Commission" means the Karnataka Electricity Regulatory Commission constituted under Section 3(1) of the Act;

(h)     "Consumer" means an end or final user of electricity;

(i)       "Distribution Business" means the business of distribution, using the Distribution System network, in the relevant area of supply;

(j)       "Distribution System" means any system consisting mainly of cables, service lines and overhead lines, electrical plant and meters having design voltage of 33 KV or below and used for the transportation of electricity from a Transmission System or Generating Set or other points to the point of delivery to Consumers taking any supply of electricity at voltage of 33 KV or under, and includes any electrical plant and meters in connection with the distribution of electricity, but shall not include any part of the Transmission System;

(k)      "Distribution and Retail Supply Undertaking" means an Undertaking related to the Distribution Business and Retail Supply Business in Bangalore Zone, Mangalore Zone, Gulbarga Zone or Hubli Zone, as the case may be;

(l)       "Effective Date of the Second Transfer" means the date as may be notified by order by the State Government for effecting transfer of assets, liabilities, posts, personnel, proceedings or undertakings from KPTCL to BESCOM, MESCOM, GESCOM or HESCOM, as the case may be, in accordance with these rules, and different effective dates of the Second Transfer may be notified for different transfers;

(m)    "ESCOMs" that is to say Electricity Supply Companies means together in all four distribution companies, as namely.

(1)     Bangalore Electricity Supply Company Limited (hereinafter referred to as the BESCOM Limited);

(2)     Mangalore Electricity Company Limited (hereinafter referred to as the MESCOM Limited);

(3)     Hubli Electricity Supply Company Limited (hereinafter referred to as the HESCOM Limited);

(4)     Gulbarga Electricity Supply Company Limited (hereinafter referred to as the GESCOM Limited), which have been incorporated with the principal objective of engaging in the Distribution Business and Retail Supply Business in the relevant Area of Supply and "ESCOM" means any one of them;

(n)     "Generating set" means any plant or apparatus for the generation of electricity and shall, where appropriate, include a generating station comprising more than one generating unit;

(o)      "GESCOM" means Gulbarga Electricity Supply Company Limited, a company established by the Government of Karnataka and incorporated under the Companies Act, 1956, having its registered office at Gulbarga Main Road, Gulbarga - 585 102;

(p)      "Grievance Redressal Committee" shall have the meaning assigned to the term in sub-rule (18) of Rule 4 of these Rules;

(q)      "Gulbarga Zone" means the Gulbarga Zone comprising of the Operation and Maintenance Divisions of KPTCL existing in Gulbarga, Bidar, Raichur, Koppal and Bellary Districts;

(r)      "HESCOM" means Hubli Electricity Supply Company limited, a company established by the Government of Karnataka and incorporated under the Companies Act, 1956, having its registered office at Navanagpur Post, Hubli - 580 025 (Dharwad District);

(s)      "Hubli Zone" means the Hubli Zone comprising of the Operation and Maintenance Divisions of KPTCL existing in Dharwad, Gadag, Haveri, Bijapur, Bagalkot, Belgaum and Uttara Kannada Districts; and

(t)       "KEB" means the Karnataka Electricity Board;

(u)     "KPTCL" means Karnataka Power Transmission Corporation Limited, a company established by the State Government under the Companies Act, 1956, pursuant to Section 13 of the Act;

(v)      "KPTCL Distribution and Supply Licence" means the Karnataka Supply Licence granted to KPTCL by the Commission and effective from 7th day of December, 2000;

(w)     "Liabilities" means all liabilities, such as debts, duties, obligations and other outgoing, including statutory liabilities and Government levies of whatever nature;

(x)      "Mangalore Zone" means the Mangalore Zone comprising of the Operation and Maintenance Divisions of KPTCL existing in Mandya, Mysore, Chamarajanagar, Kodagu, Hassan, Udupi, Dakshina Kannada, Shimoga and Chikamagalur Districts;

(y)      "MESCOM" means Mangalore Electricity Supply Company Limited, a company established by the Government of Karnataka and incorporated under the Companies Act, 1956, having its registered office at Maroli, Post Box No. 920, Kulshekar Post Office, Mangalore - 575 005;

(z)      "Other than Statewide cadre" means all employees included under Group C or D service of KPTCL other than Statewide cadres;

(za) "Personnel" means employees and officers of KPTCL by whatever name called, including those on deputation from KPTCL to other companies, organisations, institutions and bodies corporate;

(aa) "Personnel Allocation and Absorption Committee" shall have the meaning assigned to the term in sub-rule (7) of Rule 4 of these Rules;

(bb) "Posts" means existing sanctioned posts of KPTCL in any cadre, including vacant posts, as at the effective date of Second Transfer;

(cc) "Proceedings" includes all proceedings of whatever name called and its nature including suits, appeals, complaints, petitions, applications, conciliations and arbitrations, whether civil or otherwise;

(dd) "Residuary Undertaking" means the Undertakings of KPTCL, other than the Distribution and Retail Supply Undertaking and the Transmission Undertaking;

(ee) "Retail Supply Business" means the business of selling electricity to consumers, including consumers with extra-high tension and high tension installations, in the relevant Area of Supply;

(ff) "Schedule" means a Schedule appended to these rules;

(gg) "Specified Assets", "Specified Liabilities", "Specified Personnel" and "Specified Proceedings", as the case may be, means only those Assets, Liabilities, Personnel and Proceedings specified in, or in the manner set-out in the Schedules to these rules or otherwise specified in these rules for transfer to the respective ESCOM pursuant to these rules;

(hh) "State" means the State of Karnataka;

(ii) "Statewide cadre" means all employees included under Group "A" or "B" of the service rules applicable to KPTCL employees who form part of a cadre where the services are transferable between posts in various establishments of KPTCL throughout the State;

(jj) "Transmission Business" means the business of transmission of electricity through the Transmission System and shall include all incidental and ancillary activities thereto;

(kk) "Transmission System" means the system consisting of electric lines, stations and sub-stations having design voltage of 66 KV or higher, which are used for the purposes of the transportation of electricity from one power station to a sub-station or to another power station or between substations or to or from any external interconnection including 33/11 KV bays/equipment (upto the interconnection with any Distribution System), any plant and apparatus and meters owned or used in connection with the transmission of electricity and such buildings or part thereof as may be required to accommodate such plant and apparatus and other works and the operating staff thereof;

(ll) "Transmission Undertaking" means an Undertaking related to the Transmission Business of KPTCL;

(mm) "Tripartite Agreements" means the applicable agreements entered into by the State Government, the Karnataka Electricity Board, and the concerned union or association of the personnel as set-out in Schedule E and as may be modified by the parties to such agreements from time to time;

(nn) "Undertaking" means a unit of business including assets, liabilities, posts, personnel and proceedings.

(2)     Words and expressions used and defined in the Act but not specifically defined in these rules shall have the same meaning as in the Act.

Rule - 3. Classification and transfer of Undertakings.

(1)     The Undertakings of KPTCL shall stand classified, namely.

Bangalore Zone Distribution and Retail Supply Undertaking; Gulbarga Zone Distribution and Retail Supply Undertaking; Hubli Zone Distribution and Retail Supply Undertaking; Mangalore Zone Distribution and Retail Supply Undertaking; and Transmission Undertaking and Residuary Undertaking.

(2)     The Distribution and Retail Supply Undertakings of Bangalore Zone, Mangalore Zone, Hubli Zone and Gulbarga Zone, have been determined taking into consideration the relatedness, usability, proximity and contiguity to the functions to be performed, suitability, place and nature of work and the viability of the distribution zones, and shall include the specified assets, specified liabilities, posts, specified personnel and specified proceedings as set-out in, or in the manner specified in, Schedules A, B, C and D, respectively, on the terms and conditions and other financial details contained in the respective Schedules.

(3)     With effect from the relevant effective date of Second Transfer, the Distribution and Retail Supply Undertakings of KPTCL classified under sub-rule (1) and set-out in, or in the manner specified in, Schedules A, B, C and D shall stand transferred to and vest in the relevant BESCGM, MESCOM, GESCOM and HESCOM, respectively, without any further act or thing to be done by the State Government, KPTCL, any ESCOM, the personnel, debtors or creditors or any other person, subject, however, to the terms and conditions contained in these rules.

(4)     The Transmission Undertaking and Residuary Undertaking shall continue to remain with and belong to KPTCL and shall include the assets, liabilities, posts, personnel and proceedings as specified in Schedule E.

(5)     On the transfer and vesting of the Distribution and Retail Supply Undertakings pursuant to these rules, and except as otherwise provided in these rules, the respective ESCOM shall be responsible for all, or the relevant part of any contracts, tenders, rights, deeds, schemes, bonds, agreements, arrangements or dealings and other instruments of whatever nature relating to the Distribution and Retail Supply Undertakings transferred to the ESCOM, which are subsisting or having effect on the effective date of the Second Transfer of such ESCOM, in the same manner as KPTCL was liable immediately before such effective date of the Second Transfer, and the same shall be in full force and effect against or in favour of the relevant ESCOM and may be enforced as fully and effectively as if, instead of KPTCL, the relevant Escom had been a party thereto.

(6)     (a) All licenses, other than the KPTCL Distribution and Supply Licence, and all consents held by KPTCL relating to the Distribution and Retail Supply Undertakings shall be in full force and effect as if, instead of KPTCL, such licences and consents had been issued to each of the ESCOMS and, as from the effective date of the Second Transfer of each ESCOM, each ESCOM shall be responsible for the collection of taxes on consumption of electricity in place or KPTCL in its area of supply.

(b) As of the effective date of the Second Transfer of each Escom, each ESCOM shall be entitled to a licence to undertake Distribution Business and Retail Supply Business within its designated area of supply pursuant to assignment by KPTCL of its supply licence to the ESCOM for such area of supply.

(7)     Without prejudice to the Specified Assets transferred pursuant to these rules, KPTCU shall transfer to one or more ESCOMs all other assets that are reasonably required or which have, or ought to have been used by such ESCOM for the continuing performance of such ESCOM's Distribution Business and Retail Supply Business.

(8)     To the extent that any asset comprising the Transmission Undertaking and Residual Undertaking has been used by any Distribution and Retail Supply Undertaking prior to the relevant effective date of the Second Transfer, or is being used by any ESCOM on or after the relevant effective date of the Second Transfer along with KPTCL, KPTCL shall enter into an arm's length arrangement as soon as reasonably practicable with the relevant ESCOM in respect of the use of such asset.

(9)     To the extent that any Specified Asset of an Escom is being used along with KPTCL on or after the Effective date of the Second Transfer of such Escom, then such Escom shall enter into an arm's length arrangement as soon as reasonably practicable with KPTCL in respect of the use of such specified asset.

(10)   To the extent that any specified asset of an ESCOM is being used by such Escom along with another ESCOM after the relevant Effective date of the Second Transfer of such ESCOMs, such ESCOM shall enter into an arm's length arrangement as soon as reasonably practicable with the other ESCOM in respect of the use of such specified asset.

(11)   The existing escrow arrangements in respect of Tanir Bavi Power Company Private Limited would continue unaffected by the transfer of Distribution and Retail Supply Undertaking pursuant to these rules for a period of three months from the date of notification of these rules. Within this period of three months alternate arrangements to replace the existing escrow arrangements will be established in consultation with all concerned.

Rule - 4. Transfer of Specified Personnel and Posts.

(1)     The transfer of the Specified Personnel and Posts, as specified in accordance with Part HI of Schedules A, B, C and D, in terms of these rules shall be subject to the terms and conditions contained in the Act, these rules and the applicable Tripartite Agreements on an as is where is basis, as listed in Schedule F. Personnel remaining with KPTCL may also exercise the option of being absorbed in an Escom in accordance with these rules.

(2)     Subject to sub-rules (1), (3), (4) and (5), and where applicable sub-rules (6) to (9), the posts, as specified in accordance with Part HI of Schedules A, B, C and D, and the Specified Personnel shall stand classified, transferred and allocated to the services of the relevant Escom with effect from the relevant Effective date of the Second Transfer of such Escom in the manner specified in accordance with Part III of Schedules A, B, C and D.

(3)     All Specified Personnel shall be deemed to be on deputation from KPTCL in the relevant Escom:

(a)      until he or she is absorbed in an Escom pursuant to an option exercised by him/her in accordance with to sub-rule (4) or (5), as the case may be; or

(b)      is deemed to be in employment of KPTCL pursuant to sub-rule (4) or (5), as the case may be.

(4)     (a) Each Specified Personnel and all other Personnel of KPTCL, other than a Personnel who belongs to the Statewide Cadre of KPTCL (hereinafter collectively referred as "Opting Personnel")/ shall within eight months of the relevant Effective date of Second Transfer of such Specified Personnel submit to KPTCL his or her option to be absorbed in an Escom or remain with KPTCL. The absorption of such Opting Personnel shall be done in accordance with the following principles: ?

(i)       Where the number of such Opting Personnel exercising the option does not exceed the total number of posts available in an Escom or KPTCL as the case may be, all such Opting Personnel shall be deemed to be absorbed in that Escom or remain with KPTCL as the case may be, on such posts, with effect from the expiry of twelve months from the relevant Effective date of Second Transfer of such Specified Personnel.

(ii)      Where the number of such Opting Personnel exercising the option exceeds the total number of posts available in an Escom or KPTCL, the selection of the Opting Personnel to be absorbed in an Escom or to remain in KPTCL shall be done in accordance with the relevant rules of KPTCL.

(iii)     Where an Opting Personnel opts to be absorbed in an Escom, other than the Escom to whom he/she was allocated in accordance with Part III of Schedule A, B, C or D, as the case may be, his absorption shall be decided by KPTCL in accordance with the relevant rules of KPTCL.

(b) KPTCL shall intimate the results of option determined in accordance -with clause (a) of this sub-rule (4) to all such Opting Personnel no later than' the expiry of nine months from the relevant Effective Date of Specific Transfer of such Specified Personnel.

(c) An Opting Personnel who does not submit an option, or is not absorbed in an Escom, in accordance with clause (a) of this sub-rule (4) shall be deemed to have been in the service of KPTCL with effect from the relevant effective date of Second Transfer of such Specified Personnel.

(5)     (a) The Personnel of KPTCL belonging to the Statewide Cadre of KPTCL, including the Specified Personnel of KPTCL, and all other Personnel of KPTCL belonging to the Statewide Cadre (hereinafter collectively called "Statewide Cadre Opting Personnel") shall no later than ten months from the relevant Effective date of Second Transfer of Escom to which such Specified Personnel are allocated submit an option to be absorbed in an Escom, or to remain with KPTCL. A decision on such options shall be taken by KPTCL within one month from the date of exercising the option in accordance with the following principles:

(i)       Where the number of such Statewide Cadre Opting Personnel exercising the option does not exceed, the total number of posts available in an Escom, or in KPTCL as the case may be, all Statewide Cadre Opting Personnel shall be deemed to be absorbed in that Escom or remain in KPTCL as the case may be, on such post with effect from the expiry of one month from the option date or twelve months from the relevant effective date of Second Transfer of such Specified Personnel, as the case may be.

(ii)      Where the number of such Statewide Cadre Opting Personnel exercising the option exceeds the total number of posts available in an Escom, or in KPTCL, the selection of the Statewide Cadre Opting Personnel to be absorbed in an Escom or to remain in KPTCL on such post shall be done on the basis of the seniority of the concerned Statewide Cadre Opting Personnel as at the relevant effective date of Second Transfer of such Specified Personnel according to seniority list as maintained by KPTCL in respect of the such Statewide Cadre Opting Personnel.

(b) Where a Statewide Cadre Opting Personnel does not submit an option in accordance with clause (a) of this sub-rule (5) or is not absorbed in an Escom pursuant to his option, he/she shall be deemed to be in the service of KPTCL and shall not be entitled to be absorbed in an ESCOM.

(6)     Except as specified in sub-rules (4) and (5), no Personnel shall be entitled to claim absorption or be absorbed against any post in any ESCOM.

(7)     KPTCL shall, in consultation with the ESCOMs, constitute forthwith a committee consisting of representatives from KPTCL and each of the ESCOMs to be known as the Personnel Allocation and Absorption Committee to receive representations from the Opting Personnel, other than Statewide Cadre Opting Personnel, in regard to any matter relating to their allocation to, or absorption in an ESCOM in terms of these rules. Such representations shall be made within thirty days from the date of decision of KPTCL pursuant to sub-rule (4). The Personnel Allocation and Absorption Committee shall make recommendations on the matter to KPTCL within sixty days from the date of decision of KPTCL pursuant to sub-rule (4).

(8)     KPTCL shall, within a period of thirty days from the date of receiving the recommendation of the Personnel Allocation and Absorption Committee under sub-rule (7), take a decision on the allocation of the relevant Opting Personnel specified in sub-rule (4) to be made to the Escom or retained as KPTCL Personnel based on the recommendations of the Personnel Allocation and Absorption Committee under sub-rule (7) and shall record reasons for the decisions.

(9)     Where KPTCL makes a decision under sub-rule (8) different from that made pursuant to sub-rule (4), the Opting Personnel concerned shall be deemed to have been absorbed in an Escom in accordance with such decision or deemed to be in service of KPTCL, as the case may be.

(10)   On such absorption in an Escom and subject to the provisions of the Act and other provisions in these rules, the Specified Personnel shall form part of the services of the relevant Escom with their status, posts, scale of pay, entitlement to service benefits and seniority being maintained in the same manner as in KPTCL on the effective date of the Second Transfer of such Escom, but the Specified Personnel shall not be entitled to claim any change in status by reason of the transfer or absorption; provided that the seniority of Specified Personnel absorbed in an Escom, other than the Escom to whom he/she was allocated in accordance with Schedule A, B, C or D, as the case may be, pursuant to his option shall be redetermined by KPTCL in accordance with the relevant rules of KPTCL existing as at the date of notification of these rules; and provided further that a review of seniority of Personnel in respect of a period prior to the effective date of the Second Transfer, done after such effective date of the Second Transfer in accordance with the direction of a Court, Tribunal or other authority (hereinafter called the "Courts") or any law, rule or regulation shall be taken into account in determining their seniority after such date.

(11)   The transfer of the Specified Personnel and posts as specified in accordance with Part III of Schedules A, B, C and D and the absorption of Specified Personnel pursuant to Rule 4 shall be further subject to the following conditions, namely.

(a)      the terms and conditions of the services applicable to them shall not in any way be less favourable than or inferior to those applicable to them immediately before such effective date of the Second Transfer nor shall they take away their existing rights and privileges;

(b)      all such Specified Personnel shall have continuity of service in all respects;

(c)      all benefits of service accrued before the relevant effective date of the Second Transfer shall be fully recognised and taken into account for all purposes, including the payment of any and all terminal benefits;

(d)      the transfer and absorption of Specified Personnel shall be subject to orders that may be passed by the Courts in proceedings pending on the relevant effective date of the Second Transfer in regard to seniority or other matters concerning the service conditions of the Specified Personnel;

(e)      subject to Rule 7, the Specified Personnel absorbed in an Escom shall not assert or claim any benefit of service under the State Government or KPTCL, except as provided in the Karnataka Electricity Reform Act, 1999, these Rules and in the Tripartite Agreements;

(f)       the services of the Specified Personnel shall be protected till their superannuation, irrespective of the persons who own the Escoms except on grounds permitted under the law and the existing terms and conditions of employment;

(g)      the pay revision and wage settlements shall continue according to the present system;

(h)     all other terms and conditions as specified in the Tripartite agreements shall apply and shall be binding on the Escoms.

(12)   Subject to sub-rules (1) and (11) the Escoms may make regulations governing the terms and conditions of service of Specified Personnel transferred to the Escoms under these rules, and until such time the existing service conditions of KPTCL shall mutatis mutandis apply.

(13)   (1) The State Government, and not the Escoms, shall be liable for and shall make appropriate arrangements in regard to, the funding of the pension funds and of all statutory and other personnel related funds for the services rendered by the Specified Personnel to Karnataka Electricity Board and KPTCL prior to the effective date of Second Transfer of the Specified Personnel and to the extent they are unfunded as at the respective Effective date of Second Transfer of the Specified Personnel. Until such arrangements are made by the State Government, the discharge of all such unfunded liabilities for Specified Personnel who retire after the effective date of Second Transfer of such Specified Personnel shall be arranged by KPTCL.

(2) In respect of all statutory and other schemes and employment related matters, including the provident fund, gratuity fund, pension and any other superannuation fund or any other special fund created or existing for the benefit of the Specified Personnel, as at the effective date of Second Transfer of such Specified Personnel, the following shall apply:

(a)      an actuarial valuation will be done within 3 months from the effective date of the Second Transfer to determine the amount to be maintained in such funds in respect of the services of the Specified Personnel rendered to KPTCL until the relevant effective date of the Second Transfer of the Specified Personnel. Without prejudice to sub-rule (13)(1) and clause (d) of this sub-rule (13)(2), the State Government, and not the relevant Escom, shall be responsible for funding the amount determined pursuant to the actuarial valuation; and

(b)      the State Government shall establish a trust or any other entity to manage such fund;

(c)      subject to the sub-rule (13)(1), the relevant Escom and KPTCL shall make the required contributions to the trust or entity established or identified by the State Government pursuant to clause (b) above to meet their respective liabilities in respect of services rendered (either on deputation or absorption) by the Specified Personnel to an Escom and by the Personnel to KPTCL respectively, with effect from, and for the periods following, the relevant effective date of Second Transfer of the relevant Specified Personnel;

(d)      to the extent of funding by the State Government pursuant to sub-rule (13)(1) and the contributions made by the Escoms and KPTCL, such trust or entity shall be liable for payment of pension and such funds to the Specified Personnel absorbed in an Escom;

(e)      the actuarial valuation shall not affect the liability of the State Government to fund the pension of the Specified Personnel in respect of the services rendered by them prior to the relevant effective date of Second Transfer. To the extent the determination of past liabilities as established by the actuarial valuation is subsequently determined to be deficient, the State Government shall be liable to fund such deficit;

(14)   The State Government shall make appropriate arrangements with regard to the funding and due payment of all Terminal Benefits to the Existing Pensioners of KPTCL as on the relevant effective date of the Second Transfer.

(15)   Escoms and KPTCL shall enter into an agreement with such entity or trust to give effect to the arrangements described in sub-rule (13)(2) above.

(16)   For the purposes of sub-rule (13)(2)(e) and sub-rule (14), as the case may be, the term:

(i)       "Existing Pensioner" means all the persons eligible for pensions as at the relevant effective date of the Second Transfer and shall include family members of the Personnel as per the applicable scheme; and

(ii)      "Terminal Benefits" means the gratuity, pension, commuted pension, leave surrender, dearness and other applicable relief and other applicable benefits, including the right to have the appropriate revisions in the above benefits consistent with the practice that were prevalent in KPTCL as at the relevant effective date of the Second Transfer.

(17)   The proceedings, including disciplinary proceedings, pending against the Specified Personnel of an Escom as on the effective date of the Second Transfer of such Escom which relate to misconduct, lapses or acts of commission or omission committed before such effective date of the Second Transfer shall not abate by reason of the transfer of the Specified Personnel and the same may be continued and dealt with by the relevant Escom.

(18)   (i) KPTCL shall constitute forthwith a committee known as Grievance Redressal Committee to consider representation from Personnel relating to all grievances, other than (i) those relating to issues specified in sub-rule (7); (ii) those relating to the transfer scheme; or (iii) arising from the implementation of the transfer scheme.

(ii) The Specified Personnel shall be entitled to make representations before the Grievance Redressal Committee raising any grievance specified under sub-rule (1) above within a period of nine months and the Grievance Redressal Committee shall decide and communicate its decision within 45 days from the date of receipt of any such grievance. The decision of the Grievance Redressal Committee shall be final and binding on all concerned.

Rule - 5. Rights and obligations of third parties restricted.

Except as provided otherwise in the Act or in these rules in regard to a Distribution and Retail Supply Undertaking transferred to an Escom, the rights and obligations of all persons from the relevant effective date of the Second Transfer shall be restricted to the relevant Escom to which they are transferred and, notwithstanding anything to the contrary contained in any deed, document, instrument, agreement or arrangement which such person has with KPTCL, such person shall not claim any right or interest against KPTCL or any other Escom.

Rule - 6. Pending suits, proceedings etc.

(1)     The Specified Proceedings of whatever nature by or against KPTCL pending on the relevant effective date of the Second Transfer in regard to a Distribution and Retail Supply Undertaking which are transferred to an ESCOM pursuant to these rules shall not abate or discontinue or otherwise in any way prejudicially be affected by reason of the transfer and the Specified Proceedings may be continued, prosecuted and enforced by or against the relevant Escom. All proceedings which are not transferred to the Escoms pursuant to these rules may be continued, prosecuted and enforced by or against KPTCL.

(2)     The Specified Proceedings may be continued in the same manner and to the same extent by the relevant Escoms as they would or might have been continued, prosecuted and enforced by or against KPTCL if the transfers provided for in these rules had not been made.

Rule - 7. Classifications and Transfer of Assets, Liabilities, Personnel and Proceedings provisional in the first instance.

(1)     Without prejudice to Rules 3 and 4, the classification of Undertakings of KPTCL and the value of the assets and liabilities assigned in the provisional balance-sheets set-out in Part II of Schedules A, B, C, D and E shall be provisional and shall become final only upon the expiry of twelve months from the relevant effective date of the Second Transfer.

(2)     So long as the classification is provisional the State Government by order to be notified in the Official Gazette shall be entitled to amend, vary, modify, add, delete or otherwise change the items classified and identified in an Undertaking in such manner as the State Government may consider appropriate.

(3)     Without prejudice to Rules 3 and 4, all transfers and vesting specified in Rules 3 and 4 in the first instance shall be provisional and shall become final only upon the expiry of twelve months from the relevant effective date of the Second Transfer.

(4)     Without prejudice to Rules 3 and 4, at any time within a period of twelve months from the relevant effective date of the Second Transfer, the State Government may by order to be notified in the Official Gazette amend, vary, modify, add, delete or otherwise change the terms and conditions of the transfer of assets, liabilities, posts, personnel and proceedings pursuant to these rules, including the value assigned to the assets and liabilities in the provisional balance-sheets set-out in Part II of Schedules A, B, C, D and E, and the items included in the transfer, and transfer such assets, liabilities, posts, personnel and proceedings forming part of a Distribution and Retail Supply Undertaking of KPTCL or an Escom to that of any other Escom or KPTCL in such manner and on such terms and conditions as the State Government may consider appropriate.

(5)     On the expiry of the period of twelve months from the relevant effective date of the Second Transfer and subject to any directions given by the State Government, the transfer of undertakings, assets, liabilities, posts, personnel and proceedings made in accordance with these rules shall become final.

Rule - 8. Removal of difficulties.

(1)     The State Government shall have the power to remove the difficulties arising in implementing the above transfers.

(2)     The State Government may exercise any of the powers vested in it under these rules by issue of an order to be notified in the Official Gazette.

 

SCHEDULE A

Part I

Distribution and Retail Supply Undertaking forming part of BESCOM and terms and conditions thereof

(a)      The Specified Assets, other than contracts and specified liabilities, other than contingent liabilities, transferred to BESCOM are set-out in the "Register of Specified Asset and Specified Liabilities, transferred to BESCOM". This register is available for inspection at the registered office and each divisional office of BESCOM.

(b)      Details of contracts entered into by KPTCL and the proceedings to be transferred to BESCOM are being determined. The contracts and proceedings to be transferred shall be specified in orders issued and notified by the State Government from time to time within the period of twelve months from the relevant effective date of Second Transfer. Once transferred to BESCOM, the details of the contracts and proceedings shall be set-out in "Register of Specified Contracts and Specified Proceedings transferred to BESCOM". This register shall be available for inspection at the registered office and each divisional office of BESCOM.

(c)      Contingent liabilities to be transferred to BESCOM shall be specified in one or more orders issued by the State Government from time to time within twelve months from the relevant effective date of Second Transfer, and set-out in the "Register of Contingent Liabilities transferred to BESCOM".

(d)      The State Government, under the powers vested in it under these rules, may, however, transfer any of the Specified Assets, Specified Liabilities and Specified Proceedings transferred to BESCOM within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any ESCOM in which such Specified Assets, Specified Liabilities and Specified Proceedings are not at that time vested or to KPTCL.

 

SCHEDULE A

Part II

Provisional balance-sheet as on 31-3-2001 (BESCOM)

The State Government, under the powers vested in it under these rules may, alter the balance-sheet set-out in this Part II in any manner if it considers appropriate within twelve months from the relevant effective date of the Second Transfer.

 

SCHEDULE A

Part III

(a)      The Specified Personnel and the Posts transferred to BESCOM are being determined and shall be set-out in the "Register of Specified Personnel and Posts transferred to BESCOM". This register will be available for inspection at the registered office and each divisional office of BESCOM.

(b)      In addition to the Specified Personnel and the Posts set-out in the register referred to above, other Personnel and the -Posts held by them, as may be decided by KPTCL in consultation with the BESCOM, based on suitability, place and nature of work, seniority and other criteria may be transferred by the State Government within twelve months from the relevant effective date of Second Transfer of BESCOM to form part of BESCOM.

(c)      The State Government, under the powers vested in it under these rules, may, however, transfer any Specified Personnel or Posts specified in accordance with this Part III within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any Escom to which such Specified Personnel or Posts are not at that time transferred or to KPTCL.

 

SCHEDULE B

Part I

Distribution and Retail Supply Undertaking forming part of MESCOM and terms and conditions thereof

(a)      The Specified Assets, other than contracts and Specified Liabilities, other than contingent liabilities, transferred to MESCOM are set-out in the "Register of Specified Assets, other than Contracts and Specified Liabilities, other than Contingent Liabilities, transferred" to MESCOM". This register is available for inspection at the registered office and each divisional office of MESCOM.

(b)      Details of contracts entered into by KPTCL and the proceedings to be transferred to MESCOM are being determined. The contracts and proceedings to be transferred shall be specified in orders issued and notified by the State Government from time to time within the period of twelve months from the relevant effective date of Second Transfer. Once transferred to MESCOM, the details of the contracts and proceedings shall be set-out in the "Register of the Contracts and Proceedings transferred to MESCOM". This register shall be available for inspection at the registered office and each divisional office of MESCOM.

(c)      Contingent liabilities to be transferred to MESCOM shall be specified in one or more orders issued by the State Government from time to time within twelve months from the relevant effective date of Second Transfer, and set-out in the "Register of Contingent Liabilities transferred to MESCOM".

(d)      The State Government, under the powers vested in it under these rules, may, however, transfer any of the Specified Assets, Specified Liabilities and Specified Proceedings transferred to MESCOM within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any Escom in which such Specified Assets, Specified Liabilities and Specified Proceedings are not at that time vested or to KPTCL.

 

SCHEDULE B

Part II

Provisional balance-sheet as on 31-3-2001 (MESCOM)

The State Government, under the powers vested in it under these rules may, alter the balance-sheet set-out in this Part II in any manner if it considers appropriate within twelve months from the relevant effective date of the Second Transfer.

 

SCHEDULE B

Part III

(a)      The Specified Personnel and the Posts transferred to MESCOM are being determined and shall be set-out in the "Register of Specified Personnel and the posts transferred to MESCOM".

This register will be available for inspection at the registered office and each divisional office of MESCOM

(b)      In addition to the Specified Personnel and the Posts set-out in the register referred to above, other Personnel and the Posts held by them, as may be decided by KPTCL in consultation with the MESCOM, based on suitability, place and nature of work, seniority and other criteria may be transferred by the State Government within twelve months from the relevant effective date of Second Transfer of MESCOM to form part of MESCOM.

(c)      The State Government, under the powers vested in it under these rules, may, however, transfer any Specified Personnel or Posts specified in accordance with this Part HI within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any Escom to which such Specified Personnel or Posts are not at that time transferred or to KPTCL.

 

SCHEDULE C

Part I

Distribution and Retail Supply Undertaking forming part of GESCOM and terms and conditions thereof

(a)      The Specified Assets, other than contracts and Specified Liabilities, other than contingent liabilities, transferred to GESCOM are set-out in the "Register of the Specified Assets, other than contracts and Specified Liabilities, other than contingent liabilities, transferred to GESCOM". This register is available for inspection at the registered office and each divisional office of GESCOM.

(b)      Details of contracts entered into by KPTCL and the proceedings to be transferred to GESCOM are being determined. The contracts and proceedings to be transferred shall be specified in orders issued and notified by the State Government from time to time within the period of twelve months from the relevant effective date of Second Transfer. Once transferred to GESCOM, the details of the contracts and proceedings shall be set-out in the "Register of Contracts and Proceedings transferred to GESCOM". This register shall be available for inspection at the registered office and each divisional office of GESCOM

(c)      Contingent liabilities to be transferred to GESCOM shall be specified in one or more orders issued by the State Government from time to time within twelve months from the relevant effective date of Second Transfer, and set-out in the "Register of Contingent Liabilities transferred to GESCOM".

(d)      The State Government, under the powers vested in it under these rules, may, however, transfer any of the Specified Assets, Specified Liabilities and Specified Proceedings transferred to GESCOM within twelve months from the relevant Effective date of the Second Transfer, as it considers appropriate, to any Escom in which such Specified Assets, Specified Liabilities and Specified Proceedings are not at that time vested or to KPTCL.

 

SCHEDULE C

Part II

Provisional balance-sheet as on 31-3-2001 (GESCOM)

The State Government, under the powers vested in it under these rules may, alter the balance-sheet set-out in this Part II in any manner if it considers appropriate within twelve months from the relevant effective date of the Second Transfer.

 

SCHEDULE C

Part III

(a)      The Specified Personnel and the Posts transferred to GESCOM are being determined and shall be set-out in the "Register of Specified Personnel and the Posts transferred to GESCOM". This register will be available for inspection at the registered office and each divisional office of GESCOM.

(b)      In addition to the Specified Personnel and the Posts set-out in the register referred to above, other Personnel and the Posts held by them, as may be decided by KPTCL in consultation with the GESCOM, based on suitability, place and nature of work, seniority and other criteria may be transferred by the State Government within twelve months from the relevant effective date of Second Transfer of GESCOM to form part of GESCOM.

(c)      The State Government under the powers vested in it under these rules, may, however, transfer any Specified Personnel or posts specified in accordance with this Part III within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any Escom to which such Specified Personnel or Posts are not at that time transferred or to KPTCL.

 

SCHEDULE D

Part I

Distribution and Retail Supply Undertaking forming part of HESCOM and terms and conditions thereof

(a)      The Specified Assets, other than contracts and Specified liabilities, excluding contingent liabilities, transferred to HESCOM are set-out in the "Register of Specified Assets, other than contracts and Specified Liabilities, excluding contingent liabilities, transferred to HESCOM". This register is available for inspection at the registered office and each divisional office of HESCOM.

(b)      Details of contracts entered into by KPTCL and the proceedings to be transferred to HESCOM are being determined. The con-' tracts and proceedings to be transferred shall be specified in orders issued and notified by the State Government from time to time within the period of twelve months from the relevant effective date of Second Transfer. Once transferred to HESCOM, the details of the contracts and proceedings shall be set-out in the "Register of Contracts and Proceedings". This register shall be available for inspection at the registered office and each divisional office of HESCOM.

(c)      Contingent liabilities to be transferred to HESCOM shall be specified in one or more orders issued by the State Government from time to time within twelve months from the relevant effective date of Second Transfer, and set-out in the "Register of Contingent liabilities to be transferred to HESCOM".

(d)      The State Government, under the Powers vested in it under-these Rules, may, however, transfer any of the Specified Assets, Specified Liabilities and Specified Proceedings transferred to HESCOM within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any Escom in which such Specified Assets, Specified Liabilities and Specified Proceedings are not at that time vested or to KPTCL.

 

SCHEDULE D

Part II

Provisional balance-sheet as on 31-3-2001 (HESCOM)

The State Government, under the powers vested in it under these rules may, alter the balance-sheet set-out in this Part II in any manner if it considers appropriate within twelve months from the relevant effective date of the Second Transfer.

 

SCHEDULE D

Part III

(a)      The Specified Personnel and the Posts transferred to HESCOM are being determined and shall be set-out in the "Register of Specified Personnel and the Posts transferred to HESCOM".

This register will be available for inspection at the registered office and each divisional office of HESCOM.

(b)      In addition to the Specified Personnel and the Posts set-out in the register referred to above, other Personnel and the Posts held by them, as may be decided by KPTCL in consultation with the HESCOM, based on suitability, place and nature of work, seniority and other criteria may be transferred by the State Government within twelve months from the relevant effective date of Second Transfer of HESCOM to form part of HESCOM.

(c)      The State Government, under the powers vested in it under these rules, may, however, transfer any Specified Personnel or Posts specified in accordance with this Part III within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any ESCOM to which such Specified Personnel or Posts are not at that time transferred or to KPTCL.

 

SCHEDULE E

Part I

Transmission Undertaking and Residuary Undertaking of KPTCL and terms and conditions thereof

(a)      The assets, other than contracts and liabilities, excluding contingent liabilities, remaining with KPTCL are set-out in the "Register of Assets, other than contracts and liabilities, excluding contingent liabilities, remaining with KPTCL". This register is available for inspection at the registered office and each divisional office of KPTCL.

(b)      Details of contracts entered into by KPTCL and-the Proceedings remaining with KPTCL are being determined. The contracts and Proceedings remaining with KPTCL shall be specified in orders issued and notified by the State Government from-time to time within the period of twelve months from the relevant effective date of Second Transfer. Thereafter the details of the contracts and Proceedings remaining with KPTCL shall be set-out in the "Register of Contracts and Proceedings". This register shall be available for inspection at the registered office and each divisional office of KPTCL.

(c)      Contingent liabilities remaining with KPTCL shall be specified in one or more orders issued by the State Government from time to time within twelve months from the relevant effective date of Second Transfer, and set-out in the "Register of Contingent Liabilities remaining with KPTCL".

 

SCHEDULE E

Part II

Provisional balance-sheet as on 31-3-2001 (KPTCL)

The State Government under the powers vested in it under these rules may, alter the balance-sheet set-out in this Part II in any manner if it considers appropriate within twelve months from the relevant effective date of the Second Transfer.

 

SCHEDULE E

Part III

(a)      The Personnel and the Posts remaining with KPTCL are being determined and shall be set-out in the "Register of Personnel and the Posts remaining with KPTCL". This register will be available for inspection at the registered office and each divisional office of KPTCL.

(b)      In addition to the Personnel and the Posts set-out in the register referred to above, other Personnel and the Posts held by them, as may be decided by KPTCL in consultation with the Escoms, based on suitability, place and nature of work, seniority and other criteria may be transferred by the State Government within twelve months from the relevant effective date of Second Transfer of Escoms to form part of KPTCL.

(c)      The State Government, under the powers vested in it under these rules, may however, transfer any Personnel or Posts specified in accordance with this Part III within twelve months from the relevant effective date of the Second Transfer, as it considers appropriate, to any Escom to which such Specified Personnel or Posts are not at that time transferred or to KPTCL.

 

SCHEDULE F

LIST OF TRIPARTITE AGREEMENTS

(1)     The Government of Karnataka, KEB and KEB Employees Union (Registration No. 659-Recognised).

(2)     The Government of Karnataka, KEB and KEB Engineers Association (Registration No. 76/1963).

(3)     The Government of Karnataka, KEB and KEB Accounts Officers Association (Registration No. 20/97-98).

(4)     The Government of Karnataka, KEB and KEB Scheduled Caste/Scheduled Tribes' Welfare Association (Registration No. 466/74-75).