Bihar to go for restructuring of power sector
Thursday, 17 July 2003, 19:30 IST
PTANA: The much-awaited power reforms in Bihar are set to fall in place, with the state government finally deciding to restructure the Bihar State Electricity Board (BSEB).
As a first step, Chief Minister Rabri Devi has approved the trifurcation of BSEB, according to Energy Minister Shakeel Ahmad Khan.
The Bihar government, like other states, wants to restructure the state-owned BSEB into three independent companies to manage the generation, transmission and distribution of power.
"BSEB will now be trifurcated into three independent companies dealing separately with the generation, transmission and distribution of power," Khan said.
"The government has constituted a high-level team headed by the development commissioner to complete the process of trifurcation of BSEB," the minister told IANS.
Interestingly, Bihar is yet to set up an independent state electricity regulatory commission (SERC) to initiate power sector reforms. Last year, Khan had said the commission would come up soon.
The setting up of SERC is regarded necessary to pave the way for power reforms.
Orissa was the pioneer in power reforms in India following the launch of free market reforms in 1991. It subsequently became a model for other states to follow.
According to energy department sources, the restructuring was to begin in 2001 but got delayed due to the Bihar government's apathy.
Officials say once the reforms get underway, private investors would come forward to invest in Bihar's power sector as the state has potential for large-scale investments in this sector.
The power situation in Bihar has worsened since Jharkhand was carved out of it in 2000.
That Bihar is starving for power can be gauged from the fact that even the capita Patna undergoes regular power cuts. Patna receives only 130 MW against its daily requirement of 290 MW.
Most of Bihar's 37 districts reel under darkness.
Officials say Bihar's problems are worsening because a majority of the power generation units have gone to Jharkhand.
Source: IANS
Source: IANS