Mumbai, July 10: The state government had not made a decision on the privatisation of Maharashtra State Electricity Board (MSEB). The issue had not come up for discussion before the cabinet, deputy chief minister Gopinath Munde said on Thursday.

Munde, who also holds the energy portfolio, was replying to a supplementary from the leader of the opposition, Madhukar Pichad. The main question, on the breakdown of electricity in the state during March-April, came from Digvijay Khanvilkar (Cong) and others.

The Rajadhyaksha committee on restructuring of MSEB recommended the privatisation of distrubution. The government had, however, not taken a decision on the matter so far, Munde said. He admitted that there have been some faults in the distribution system and added that Rs 2,000 crore would be needed for restructuring.

Munde said there was a large difference in demand and supply of electricity. As a result, the state has been divided into six zones and there is load-shedding in each zone daily to save on power. The state would not face load shedding after October 1998 since the frequency of power could be increased once the Chandrapur-Padge transmission line and the first phase of the Dabhol power project was completed, Munde said. On improvement of power supply, he said the plant load factor had been increased from 58 per cent to 68 per cent.

Meanwhile, the irrigation minister told the state council that the government has decided to undertake work on some irrigation and hydroelectric power projects through private sector participation.

Replying to a question by Babanrao Chaudhary and others, Khadse said though a letter of intent had been issued to a private firm, no final decision had been taken.

He said a US firm would undertake work on the Bhandardara hydroelectric project in Ahmednagar district, he said in reply to a supplemaenatry. The project would cost Rs 12.50 crore, the minister added.

In a written reply to another question by Sharad Wani and others, Khadse said the issue of Rs 100 crore bonds was released through private placements on June 18 for the Vidarbha Sinchan Vikas Mahamandal.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.