MSEB chairman Asoke Basak told reporters on Thursday that such a decision has been taken in view of right per cent growth of population and the requirement of worth Rs 2,000 crore to further strengthen the distribution and systems network in Navi Mumbai. He made it clear that MSEB will provide power to the joint venture company.

Basak said that the state cabinet has already rejected the Rajadhyaksha committee's recommendation on the privatisation of transmission and distribution in Maharashtra. The committee had suggested that the privatisation should be introduced by carving out circles and floating tenders.

Basakstrongly justified an average 7.6 per cent hike in power tariff made effective from September 1 by MSEB and added that it will register an increase in its revenue by 4.28 per cent by March 1999. MSEB's revenue will increase to Rs 10,450 crore by March 1999 and further rise to Rs 10,850 crore by September next year from the present Rs 10,000 crore.

Basak said that MSEB made a sincere attempt to rationalise tariffs and added that the overall revenue in the domestic category would increase from Rs 874 crore to Rs 902 crore, an increase of 3.27 per cent. The tariff rise in domestic tariff was 5.6 per cent.

Basak said that MSEB would concentrate on saving cost, reducing inventory and improving revenue and assessement. Simultaneously, focus was also given on an intensive drive to improve the assessement by replacing meters and curb power thefts.

Basak said MSEB has launched a massive drive against power thefts and addedd that it was revealed that major industries were involved in power thefts in a big way.MSEB will take a stern action against steel manufacturing companies, rice mills and ice factories which were indulging in power thefts. The board had detected three such cases in Aurangabad, one each in Jalgaon and Jalna, he added.

Basak said that MSEB will shortly approach the market to raise Rs 262 crore required to pick up 30 per cent equity in the Bahol power project. He informed that the JM Financial will be the lead-manager for this issue. MSEB has already raised Rs 750 crore for this purpose and the issue was arranged by the JM Financials.

Basak said that MSEB will also float a bond issue of Rs 300 crore for the systems improvement and hoped that the market would respond positively. On commencement of phase-II of Dabhol power project, Basak said that the construction work will start from December this year when the first phase will go on steam.