Wednesday, November 8, 2000
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Chief secretary to head panel to spot consultants for MSEB valuation 

Sanjay Jog  
Mumbai, Nov 7: The Maharashtra government, which has given an in-principle approval for restructuring the Maharashtra State Electricity Board (MSEB), will shortly appoint a committee headed by the chief secretary for the selection and appointment of global consultants to carry out asset valuation and suggest ways of its transfer to new entities after unbundling the MSEB.

The government, bowing to pressures from the World Bank, will table the Maharashtra Electricity Reforms Bill in the coming session of the legislature to pave way unbundle the MSEB. This was announced by state Energy Minister Dr Padmasinh Patil in an exclusive interview with The Financial Express after a breakfast meeting with the visiting World Bank president James D Wolfensohn. Earler, Dr Patil had attended the foundation-laying ceremony of the 220 KV sub-station at Vankusare in Satara district.

Dr Patil said he did not see any major agitation, especially from MSEB trade unions, against the proposed unbundling of the utility as ``every precaution had been taken to safeguard the employees jobs and service conditions. I strongly feel that the unbundling of the MSEB will help bring in accountability, transparency and, above all, expedite the process of metering to all. This will further lead to implement energy audits.'' Dr Patil said that the unbundling of the MSEB will also help in the flow of the much-required funds from the World Bank, financial institutions, the PFC and the Rural Electrification Corporation for systems improvement, generation and T&D projects.

"A record Rs 13,000 crore will be needed for increasing the generation capacity in the state. In addition to this, as many as Rs 7,000 crore would be required for strengthening transmission and distribution network in the state,'' he added. The minister said various district central cooperative banks have come forward to provide at least Rs 500 crore to fund improvements in the transmission and distribution of power projects.

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