INDEX

Chapter-1
Introduction

Chapter-2

Profile of CESU
CHAPTER-3

Objective of the study

Research methodology

Data collection

Scope and limitation of the study

Cauterization scheme

CHAPTER -4
Organization structure of CESU

CHAPTER – 5

Findings

Suggestions

Conclusion

ANNEXURE

Questionnaire

Bibliography
Research Methodology

The project report required a sincere effort to study the organization

structure. The analysis has been drawn on the basis of information and data
available . The data is the most important thing for any analysis.

Data collection

Data has been collected from two sources:

Primary source

Secondary source

The primary data are the basis but important source though which we
collect the data have been collected by meeting the various employees,
executives and other supporting staff of the CESU.

The Secondary data are another source through which we collect the
data and information. Secondary data have been collected from the internet .
Different books, journals and other materials pertaining to the company and
industry have also been consulted. My survey was basically done under the
HR Department.

Research Instrument

The Research instrument used was the questionnaire containing closed

form questions. A personal interview was conducted with the employees
where questions on various aspects were asked and information collected.

Questionnaire design

The questionnaire was designed taking into consideration the various

aspects discussed in the meetings, current happenings in organization.

Period of study

The study was under taken for a period of 45 days during August-Sep 2010
Questionnaires were pre tested
Objectives were set and questionnaires were finalized
Data were collected and recorded
Data were analyzed and interpreted
Reports were generated

Limitations of the study

Time constraint, as it is difficult visit all the units of the organization

within a short period

The survey was conducted in CESU Bhubaneshwar and its finds are
applicable to this division and further sample being small, the findings
cannot be generalized in the whole of the CESU

It is possible that due to paucity of time some areas many not have been
adequately covered.
INTRODUCTION

Organization structure is the established pattern of relationship

amongst the component parts of the organization. It prescribes the
relationship amongst various positions and activities in business. Since
various positions are held by the persons so structure creates relationship
among them. The organization structure provides a frame work which holds
various functions together in accordance with the pattern admitted by
managers. A planned structure outlines the required functions, correlates the
functions, correlates the functions in a systematic manner and assigns
authority and responsibility.

Every business sets some goals to be achieved. In order to achieve the

goal some activities are to be performed. Theses activities are to be specified
classified and grouped. The grouped activities are assigned to individuals or
groups. The responsibility and authority is assigned to carryout various
activities. A system of proper co-ordination is established to reach the
organizational goals. The establishment of systematic relationship among
various activities adpersons is the frame work of organization structure.

An organization structure should satisfy the requirements of the

business. It should ensure optimum utilization of man power and different
functions should be properly performed. There is a need for harmonious
relationship among the persons at different positions. Designing of a
structure is an important task and it should be under taken carefully .
Following steps are essential for designing an organization structure :

Identifying Activities: The activities which are required to be

performed in achieving organizational objectives should be identified . The
functions to be performed for achieving different goals should be ascertained
and activities relating to these functions should be identified. The major
activities are classified into a number of sub-activities. While identifying
activities, it should be borne in mind that no activity has escaped, there is no
duplication in activities and various activities are performed in a co-ordinate
way.
Grouping activities:

The closely related and similar activities are grouped together for the
departments, divisions or sections. The co-ordination among the activities
can only be achieved through proper grouping. The grouped activities can be
assigned to different positions. The assignment of activities to individuals
relates authority and responsibility. The authority is delegated to the lower
levels of various departments.

Delegation of authority

Delegation is an administrative process of getting things done by

others by giving them responsibility . When different positions are created in
the organization then work is assigned to these persons. For getting the work
done there is a need for authority. The authority is delegated to different
persons in accordance with the assignment of responsibility.. Through the
process of delegation, authority structure is created in the organization
defining who formally inter acts whom.

Basic Principles of Organization

The main object of any sound organization is to increase the

efficiency of the management so that the business may expands and give
increase returns without a breakdown or unnecessary waste. Organization
therefore involves scientific arrangement and planning of the productive
process with a view to the most economic and favorable results.

Friction in the business concern must be removed so that the various

organs or departments may work speedily and smoothly towards the definite
goal laid down by the administration. All the organs of the business
undertaking must work in perfect coordination with one anther. All the
branches of the enterprise must be equally effective. If the balance is abet
and some units of the business are well planned and efficient, whereas others
are not, the organization is unsound. All the units of the business
organization be organized on the same line irrespective of the size of such
unit. This is because every unit is interdependent and the efficiency of even a
small unit would endanger the whole undertaking.

The supervision and control of the management must be adequate. In

case of small undertaking this may not present a serious problem the
organizer of enterprise is generally working as he manager and also in the
direct personal contact with the business transactions .However, ,in case of
larger undertaking the organization has to be more elaborate. The increase in
importance of scientific business organization is the direct of the
development of large—scale undertaking in modern times as a result of
amalgamations, absorptions, and combinations.

As the business expands, the importance of sound organization

increases. A sound organization must therefore be such as to permit smooth
and easy expansion without dislocation of the undertaking. The office must
be so organized as not to be crippled by change in the personnel and the
organization must therefore be so arranged as to fit the personnel nut the
personnel must be suitable for the organization. Al though it is true that the
main organs of the business are created at the time of establishment and
commencement of the undertaking, as the business expands it may be
necessary to create still further organs or departments and even to transfer
considerably the existing organs . A sound organization would permit of
these changes smoothly and rapidly.

A sound organization should also make the fullest use of labor power.
Personnel must be carefully selected for every work. Again, the factors that
increase labor efficiency must be borne in mind. For example, the efficiency
of the typist may be considerably increased by introduction of suitable
seating accommodation, lighting and ventilation resulting in decrease in
fatigue. The efficient organizer would therefore always be on the alert to see
whether his arrangements need modification to obtain better results.

The underlying principles of sound organization may be summaries as

follows:

(a)Division of Labour and Specialization

The classicists viewed specialization as the basis of efficiency. A

group of individuals can secure better results by having division of work .
F.W. Taylor applied this principle at the operation level and displayed how
efficiency could be increased by breaking down jobs into single repetitive
tasks performed on specialized tools. At higher level, however, grouping
jobs into manageable units and their coordination can pose serious problems.
(b) Consideration of objectives

Organization offers the structure that enables us to accomplish goals.

Objectives are helpful in determining the activities and structure itself. Once
objectives are clearly defined, the organizer can conveniently proceed to
group activities, delegate authority to individuals to whom activities have
been assigned, and coordinate their effort for better result,. Since objectives
have been direct bearing upon the organization structure, one should take
due cognizance of time and develop and design the structure so as to
facilitate accomplishment of objectives.

(c) Scalar Principle

The vertical dimension of organization structure consists of levels of

authority arranged in hierarchy from the chief deductive at the top to the first
line supervisor the bottom. Existence of these levels is always the
characteristic of organized and coordinate group efforts. In complex business
organization the number of levels may be substantially large.

The scalar principle holds that organization consists of two or more

level of authority. The basic idea of this scale is that of grading or
distributing a cartelistic over a series of demarcated units. In organizations,
the levels represent graduations distributed authority. Each successively
lower level down the management hierarchy represents a decreasing amount
of authority.

(c) Principle or Decentralization

Logical grouping of related jobs and function is quite natural

developing the organization structure. Departmentalization requires
analyzing every thing that has to be done and determine the grouping in
which it can be place without violating the principle of homogeneity. Thus
financial aspects of the business can well be placed in one section.

Departmentalization is desirable because individuals vary

considerably inherence of actives which their abilities will permit to perform
effectively. Another advantage is that it focuses executive skills on logical
and interrelated problems and provides a basis for top management to
coordinate and control the efforts of the departments. Departmentalization
breaks the work in to manageable units.

(d) The Principle of Unity of Command

A business organization motive single head in whom all authority and

responsibility is concentrated, but this has to be blend with the effort of
organized people below. The single leader is the ultimate source of authority
which conflicts are minimized. Unity effort, consistency of direction, high
morale, and effectiveness of coordination depend upon one executive as the
locus of ultimate responsibility To subject the person to the authority of
more than one immediate superior leads to divide his loyalty and confute his
action.

(e) Principle of Span of control

The idea of span of control is related to the horizontal dimension of an

organization structure . Span of control also referred to the span of
supervision of span of management refer to the number of subordinate
reporting directly to the executive . The principle holds that large the number
of subordinator reporting directly to the executive, the more difficult it tends
to be for them to supervise and coordinate them effectively.

(f) Principle of Flexibility

Organization is created to accomplish certain goals. Both the

environment and the individuals comprising the organization constantly in
flux. To cope with these changes and reach its objectives, an organization
must be designed with sufficient mount of flexibility . A flexible
organization is able to witness pressure, but give way to the demand for
genuine change without fundamentally altering the basic conditions of
various segments of the structure.

(g) Principle of Balance

The principle implies that each area and function of an enterprise

should operate with equal effectiveness making it a allotted contribution to
the total purpose .Problems of balance arise from the tendency to sub-divide
the work into small units. If sub-division is carried too far, the problem
timing, coordination and integrating the work sequences become very
complicated. The idea of balance applies to organization structures as well as
the functions and processes. The growth of business whether sudden or
gradual, produces pressure which upset organization balance . A and
therefore, changes in organization structure should be made after giving full
consideration to balance, and by avoiding over-reliance upon a single type of
structure. Horizontal and vertical dimensions should be marinating and kept
in balanced relations to one another.

(h) Exception Principle

The next very fundamental principle of organizations the exception

principle. This principle implies that only problems involving unusual matter
should be referred upward and decided by higher level executives and that
routine problems should be passed to the lower level and resolved their
itself. It implies devising a method of control so that only exceptional results
are flagged for the management attention. This principle is based on the
assumption that management at higher echelons of organization structure
have limited time and capacity and they should develop larger part of their
time and abilities to important matters of planning and police making.

(i) Principle of Decentralization

This principle is of great significance in the organization, specially to large

enterprise. One important implication of decentralization is to delegation of
broad authority and decision making power to the semi-autonomous units.
There is said to exist decentralization in an organization if decision making
authority is pushed down to its lower level and as near the source of
information an action as possible.

Principle of Simplicity

(j) The idea of simplicity in organization structure may at first appear

facetious in view of large size and complex nature of many of our business
organizations. Nevertheless, simplicity is an objective of organization
planning

Simplicity is an appealing objective because it implies economy of

efforts . This principle in brief states that it is desirable to consider simplicity
structure in developing an organization aiming for a clear-cut structure as
will permit doing the necessary work.
(k) Combining of line and Staff

Organization structure are usually of line and staff and functional types. Line
structure is part of every organization. The staff and functional types are
modifications of the line structure . Staff and functional structure seldom
exist apart from a combination with line structure.

Line structure consists of vertical relationship with power to

command and execute. Staff functions are auxiliary to the line functions and
are advisory in nature . On the basis of distinction like this, it is argued that
line and staff function should not be combined in one individual or
department where separation of the functions is possible . The reason is that
these are basic authority relations, combination of which will result ink
confusion.

An over view of CESU

At present CESU is supplying electrical energy to about 9 lakhs of

consumers in its area of operation spread over the districts of Puri, Khurda,
Jagatsinghpur, Angul, Cuttack, Kendrapara, Nayagarh, Dhenkanala and a
part of Jajpur District. Its distribution area covers 29,000 sq km and it
provides electricity to about 1/3 of the population of the State of Orissa.
Presently CESU has 20 electrical distribution Division, one MRT Division
and one E&MR division . Five electrical circles are functioning under its
control. It has got 68 sub-divisions, and 245 electrical Sections. Its Human
Resource consists of about 8330 persons. One APDRP Circle and three
APDRP Distribution Divisions are also functioning to execute all the
construction works for system improvement financed by IBRD as a part of
power structure reforms in Orissa. The infrastructure available with CESU is
furnished below :
No. of Circles 5
No. of Divisions 20
No. of Supporting Division 4
(E&MR.MRT, Store & Supply)
No of Subdivision 68
No of Sections 245
Length of 33 KV.CKM 2741.798
Length of 11 KV CKM 15779.57
Length of LT line 18904.776
No. of 33 KV feeder 125
No. of 11 KV feeder 584
No of distribution transformer 17405
Objectives of CESU

• To acquire, establish, construct and operate electrical lines for the

purpose of distribution and supply of electrical energy and associated
substations

• To purchase and sale of electricity and co-ordinate with other

companies

• To plan, investigate and prepare product report, Business plan, and

strategies documentation and forecast customer demand source of
purchase of power

• Tundertake for and on behalf of others the erection, operation,

maintenance, management of electrical lines for the purpose of
distribution and/or supply of electrical energy and associated
substations, equipment apparatus, cables and wares.

Vision of CESU

- To ensure uninterrupted quality and reliable power supply to its

consumer

- To be the best distribution utility of India

- To make every work place a safe working place

- To be socially responsible for employees and society

Its Mission
 - Be a corporate responsible to care for human lives

- To adopt profitable policy to create a happy workforce and adopt

best work culture practice

- To allow fair lab our welfare practice by eliminating fear of

redundancy from the people through proper training

- Managing the change process by good and fair HRD practices

- To deploy latest technologies in the system to bring transparence

And its core values

Customer Focus

ORGANISATION STRUCTURE OF CESU

In every business enterprise the source of all authority rests with the Board
of Directs. The primary authority and responsibility of making fundamental
decision in respect of the location and exercise of general function of
direction, supervision and control of administration rests with the Board.
The exercises the supreme power of direction and control. It frames rules
and regulations, organizes its functions, and plans its projects .It determines
the activities to be undertaken, determines the pattern of the organization,
the personnel to be employed, frames the rules and regulation, and
determines the grant of funds and exercises supervision over all the
activities.

With the inception of Central electricity Supply Utility of Orissa

(Operation and Management) Scheme 2006 the Management Board of
CESU came into being .Sub rule (ii) of Rule 2 of the said Scheme states that
all assets, liabilities, right of day-to-day management of the affairs, and the
power of administration and general superintendence including control of
finance and manpower of the Utility shall be vested with the Management
Board constituted by the Commission under this Scheme from the data as
ordered by the Commission to this effect .The Management Board shall have
the power to acquire hold and dispose of any property moveable or
immovable and enter into any contract for the benefit of the utility and may
sue or be sued in the name of the Management Board represented by the
Chief Executive Officer(Operation). The Management Board shall comply
with the provisions of Electricity Act,2003 and other relevant statutory
provisions and license conditions with regard to distribution of electricity in
Utility’s area of supply. The Management Board shall carry on the business
of distribution of electricity in accordance with the license conditions in
respect of the area assigned to CESCO under the revoked license and shall
abide by the directions of the Commission issued from time to time to the
officers of the Utility as per the recommendations made by CEO(O) and
with CEO (F&C).

Management of the Board

The Commission shall Commission Reserves the Power to constitute

a Management Board for operation and management of the utility. The
Board shall consist of not more than eight Members to be nominated by the
Commission out of which two shall be full time Members. One of the full
time Member shall be designated as Chief executive Officer(Operation) and
other full time Member shall be designated as Chief Executive Officer
(Finance and Commerce). The Management Board shall be headed by a
Chairman to be designated by the Commission.

The Management Board shall be as follows:

(a) Chairman (designated by the Commission)

(b) Two members from the Govt of Orissa to be nominated by the

Commission in consultation with Govt of Orisa

(c) Three Members to be nominated by the Commission from amongst

the eminent persons having wide experience in Power Sector of
Orissa

(d) Chief Executive Officer (Operation) designated by the

Commission under the Scheme
According to the provisions of the scheme aforesaid, the Commission, vide
their order dated 08-09-2008 reconstituted the CESU’s Management Board
as follows:

(e) Chief Executive Officer Finance & Commerce designated by the

Commission under the scheme.

According to the provisions of the scheme aforesaid the Commission

in their order dated 08-092008 reconstituted the Cesu’s Management
Board as follows:

1. Shri B K Jena Chairman

2 Secretary, Member
Department of Energy
Govt of Orissa
3 Chairman-cum-Managing Director,GRIDCO Member
4 Police Commissioner Member
Cuttack – Bhubaneshwar,
Twin City
5 Dr Omkarnath Mohanty,V.C., Member
BPUT
6 Dr Muktikanta Mishra, Member
Ex-Professor,XIBM,Bhubaneshwar
7 Mr.K P Rath, Member
Former Member ,Transmission and
Distribution,(OSEB)
8 Mr A K Ghosh Member
Chief Operating Officer,
NDPL, New Delhi
9 Chief Executive Officer, CESU Member
1 Chief Operating Officer, CESU Member
0
11 Chief Commercial Officer, CESU Member
1 Chief Finance Officer, CESU Member
2
 In addition to the above Mr. Ananta Rao, Chief General Manager (IT)
GRIDCO shall be special invitee as and when required and so decided
by the Chairman.

Chairman-the Presiding Officer of the Board

Sub rule of () of Rule 2 states that the Management Board shall

consist of a Chairman to be nominated by the Commission in consultation
with the Govt of Orissa. He shall hold office for a period of two years from
the ate of entry in office and the said period is extendable He presides over
all the meetings of the Board. He Chief guides and advises and have overall
superintendence and control over the CEO(O) and CEO(F&C).He has the
prerogative to decide al matters referred to him by the Board, CEO(O) or
CEO(F&C).He also discharges all other functions assigned by the
Commission under the scheme.

Executive Officer – the Chef Spokesman of the utility

Sub Section (ii) of Section 5 of the said Scheme states that subject to
overall supervision, control and delegation of power by the Management
Board and directions of the Commission-

He shall act as the Chief Executive and Chief Spokesman of the

Utility. He shall manage the day-to-day affairs and management of the
Utility and shall represent the Utility before the Commission, Govt and other
Authorities. Shall take decision involving financial implications with
concurrence of CEO(F&C). He shall carry out and implement the orders and
directions issued by the Commission to the Utility. He shall also carryout
and implement the resolutions/decisions taken by the Management Board.
He in consultation with CEO(F&C) shall design and implement the
organizational structure and management of the Utility. He shall represent
the Management Board in all legal proceedings before the Commission,
Courts, etc. In the name of the Management Board, he shall discharge all its
statutory /regulatory requirements and obligations. The CEO(O) shall report
to the Chairman.

Chief Executive Officer(Finance & Management)

Sub section of Section provides that there should be a Chief Executive
Officer (Finance & Management). His duties and responsibilities consists of
heading the finance, accounts, internal audit and also to manage all
commercial activities for the Utility . Any other function as assigned by the
Commission or the Management Board from time to time is also executed
by him . He reports to the Chairman.

Departmentalization

Departmentalization may be defined as the process of grouping

activities into units with a view to ensuring effective management. Growth
of enterprise and principle of specialization is the genesis of specialization.
As span of management is factor that greatly restricts the size of thee,
enterprise, therefore, the through departmentalization only an organization
can be extended to a reasonable degree. In the same way, principle of
specialization requires grouping of similar activities into separate units. The
process of departmentalization takes place at all levels of the organization.
The Chief Executive groups activities into major divisions administered by
senior executives reporting directly to him. The senior executives further
divide their activities into different sanctions. Thus the common process of
grouping takes into individual jobs, grouping jobs into administrative units
to establish the department. In terms of the level at which it is done, the
process of departmentalization may be divided into the following three
stages:

(a) Primary departmentalization i.e. initial breaking-up-of the

functions into basic activities
(b) Intermediate departmentalization i.e. creating departments in the
middle level organization
(c) Ultimate departmentalization i.e. dividing activities into separate
units at lower level.

Several patters of departmentalization are available in the business

world. The most common patterns are grouping by functions,
products, territories, process, customers etc.
 CESU as an Utility has multifarious functions . Apart from
distribution of electricity, it has to collect dues, recruit staff, manage
the finance, liaise with other nodal agencies, contest legal suits before
courts . It has therefore followed a mixed organizational pattern. It has
a corporate office which is organized as under :

Sl. No. Designation

1. Chief Executive Officer
2. Chief Operating Officer
3. In charge of Chief Commercial Officer
4. Chief Finance Officer

For administrative convenience, the entire function of the corporate office

has been divided into five wings, basing upon the principle of specialization
and division of labor. These wings are:

1.Human resource and Administration wing

2. Legal wing
3. Public Relation wing
4. Technical Wing
5. Planning and monitoring wing
6. Commerce Wing

Human resources and Administration wing : It is the most important wing of

the Utility. It take care of all Human resource requirements of CESU and
also looks into day-to-day administration of the Utility. It has the following
staffing pattern :

Sl. No. Designation

1. Senior General Manager (HR)
2. Dy General Manager (HRD)
3. AGM(HRA)
4. AGM(HRA)
5 Manager (HR)
6. Dy Manger (HR)
7. Junior Manager (HR)
8. Junior Manager (HR)
9 Junior Manager (HR)
10 Junior Manager (HR)
 11 Junior Manager(HR)
12 Junior Manager (HR)

Legal Wing – This wing looks after the legal matter of the organization . It is
constituted as under :

Sl. No. Designation

1. Manager (Law)
2. Junior Manager Law

Public Relation s Wing: It takes care of the public relation affairs of the
Utility . This wing is headed by a Dy Manager (PR)

Technical Wing : Looks after all technical matters of CESU. It is organized

as under :

l. Designation
No.
1. Sr General Manager
2. Dy Manager(Mech)
3. Dy Manager (Technical )
4. Dy Manager (Technical)
5 Assistant Manager (Electrical)

Planning and Monitoring

Sl. No. Designation

1. Sr General Manager
2. Dy Manager(Mech)
3. Dy Manager (Technical )
4. Dy Manager (Technical)
5 Assistant Manager (Electrical)
Commerce Wing

Sl. No. Designation

1. AGM
2. AGM
3. DM
4. Manager

5. Junior Manger
6. Junior Manager
7. Junior Manager

Finance Wing

Sl. No. Designation

1. GM
2. DGM
3. AGM
4. AGM
5. AGM
6. DM
7 Astt Managers (5 )

Organization of Field Offices

The entire area under jurisdiction of CESU is divided to Five Circles

as detailed below :
1.Electrical-Circle I, Bhubaneshwar

2.Electrical Circle II, Bhubaneshwar

3.Electrical Circle, Cuttack

 4. Electrical Circle, Paradeep

5. Electrical Circle Dhenkanal

Each Circle is headed by one Superintending Engineer who reports to _the

main corporate office. Each Superintending exercises control over
Divisional heads as enumerated below:-

Name of the Circle Name of the Division

Circle-I, Bhubaneshwar Bhubaneshwr City Distribution Division-I

Bhubaneshwar City Distribution Division-II
Bhubaneshwr Electrical Division (BED)
Nimapara Electrical Division(NED)

Circle II, Bhubaneshwar Khurda Electrical Division,Khurda

Puri electrical Division
Nayagarh Electrical Division
Balugaon Electrical Division, Balugaon

Electrical Circle Cuttack

City Distribution Division-I
City distribution Division II
Cuttack Electrical Division, Cuttack
AthagarhElectrical Division, Athagarh
Salipur Electrical Division, Salipur

Electrical Circle Paradeep Kendrapara Electrical Division,Kendrapara

Kendra para Electrical Division, Marsaghai
Jagatsinghpur Electrical Division
Paradeep Electrical Division

Electrical Circle Dhenkanal Dhenkanal Electrical Division,Dhenkanal

Talcher Electrical Division,Chainapal
Anugul Electrical Division, Angul

From the above it is apparent that the number of Division under each
Circle is not similar. For example, Bhubaneshwar circle has 2 distribution
and Cuttack Circle have 1 Distribution and two Electrical Divisions each
under their jurisdiction. Similarly, remaining three Circle have only
Electrical Divisions under them. The office of the Superintending Engineer
is under :

Establishment Section
Finance Section
Commerce
Clerical A& Clerk B
Data entry officer
Work and purchase
Technical is organized as:
Technical Assistant

Organization of a Division

A distribution Division is headed by one AGM who reports to the

head of the respective CIRCLE. He, in turn, exercise control over the
Subdivisional heads who are in charge of the Sub Divisions. AHis office is
organized as under :
Technical

Administrative
(a) Assistant Manager
(b) Divisional Accountant
(c) Head Clerk
(d) Cleck (a) & Clerk (b)

Similarly, an Electrical Sub Division is also headed by one a SDO

who reports to the AGM and exercises control over the Section Officers
under him. His office is organized as under :

Engineer
Commerce
 The last formation of CESU is the Section which is headed by a
Junior Manager. He reports to the Sub divisional head.

Company profile

Before discussing any thing about CESU it is necessary to cast a birds

eye view on the origin and growth of this Utility. As a matter of fact, CESU
owes its origin to CESCO. In a nut shell, the origin and growth of CESU is
as under :

The Central Electric Supply Company of Orissa Limited, CESO in

short, was incorporated on 19-11-1997 under Companies Act, 1956 as a
Public Limited Company. It received certificate of commencement of
business on 30-12-1997 and started functioning with effect from 2611-1998
under the license of GRIDCO. CESCO received the distribution and retail
supply license from Orissa Electricity Regulatory Commission (OERC) to
distribute and make retail supply of Electricity in the Central Zone
consisting of undivided Cuttack, Puri and Dhenkanal Districts of Orissa. It
started functioning under its own license from 1-4-1999. The company
continued to be a wholly owned subsidiary of GRIDCO till 31-8-1999.As a
measure of power sector reform in Orissa 51% percent of the shares of the
company were disinvested on 01-09-1999and accordingly the Company
ceased to be a Government Company with effect from 1-9-1999. AES-ODPL
acquired 51% of the shares of CESCO and took over the management of the
company in August 2001. However, it disassociated itself from the
management of the company from August 2001. On an application filed by
GRIDCO with OERC the later appointed a Chief Executive officer to
manage the affairs of CESO . The Chief Executive Officer took over the
management with effect from 28-8-2001.The license of CESCO was finally
revoked with effect from 01-04-2005 by OERC. After revocation of the
license an un successful attempt was made to privatize the undertaking .
Ultimately, in exercise of the powers under Section 22 of Electricity
Regulation Act 2003, the Commission, vide their order dated 08-09-2006 the
Central Electricity Utility of Orissa (Operation and Management )Scheme .
The Scheme Came into force with effect from 08 September 2006and from
this date the Utility is named as “ The Central Electricity Supply Utility of
Orissa, CESU in short, and all assets, liabilities, rights, proceedings and
manpower as well as the license for distribution and supply of electricity
held by CESO devolved upon CESU.
An over view of CESU

At present CESU is supplying electrical energy to about 9 lakhs of

consumers in its area of operation spread over the districts of Puri, Khurda,
Jagatsinghpur, Angul, Cuttack, Kendrapara, Nayagarh, Dhenkanala and a
part of Jajpur District. Its distribution area covers 29,000 sq km and it
provides electricity to about 1/3 of the population of the State of Orissa.
Presently CESU has 20 electrical distribution Division, one MRT Division
and one E&MR division . Five electrical circles are functioning under its
control. It has got 68 sub-divisions, and 245 electrical Sections. Its Human
Resource consists of about 8330 persons. One APDRP Circle and three
APDRP Distribution Divisions are also functioning to execute all the
construction works for system improvement financed by IBRD as a part of
power structure reforms in Orissa. The infrastructure available with CESU is
furnished below :

No. of Circles 5
No. of Divisions 20
No. of Supporting Division 4
(E&MR.MRT, Store & Supply)
No of Subdivision 68
No of Sections 245
Length of 33 KV.CKM 2741.798
Length of 11 KV CKM 15779.57
Length of LT line 18904.776
No. of 33 KV feeder 125
No. of 11 KV feeder 584
No of distribution transformer 17405

Objectives of CESU

• To acquire, establish, construct and operate electrical lines for the

purpose of distribution and supply of electrical energy and associated
substations
 • To purchase and sale of electricity and co-ordinate with other
companies

• To plan, investigate and prepare product report, Business plan, and

strategies documentation and forecast customer demand source of
purchase of power

• Tundertake for and on behalf of others the erection, operation,

maintenance, management of electrical lines for the purpose of
distribution and/or supply of electrical energy and associated
substations, equipment apparatus, cables and wares.

Vision of CESU

- To ensure uninterrupted quality and reliable power supply to its

consumer

- To be the best distribution utility of India

- To make every work place a safe working place

- To be socially responsible for employees and society

Its Mission

- Be a corporate responsible to care for human lives

- To adopt profitable policy to create a happy workforce and adopt

best work culture practice

- To allow fair lab our welfare practice by eliminating fear of

redundancy from the people through proper training

- Managing the change process by good and fair HRD practices

- To deploy latest technologies in the system to bring transparence

And its core values

Customer Focus