More time sought for GEB recast

State seeks time till March 31 for the board's restructuring

The state government has sought time till the end of the current fiscal to complete the restructuring of the Gujarat Electricity Board (GEB).

Government sources said the state government has asked the Union government to provide time until March 31, 2005, to restructure the power generation, transmission and distribution pattern of the electricity board.

Earlier, the Centre had set a November 30, 2004, deadline for the restructuring of the electricity board.

State minister of energy and petrochemicals Saurabh Dalal said: "The restructuring process is elaborate and requires time. We are going ahead with the restructuring and hence have sought more time from the Centre."

According to a memorandum signed between the state principal secretary and the ministry of power of the Central government, the Gujarat government is supposed to begin the restructuring of Gujarat Electricity Board by setting up a separate power generating company called Gujarat State Electricity Corporation Ltd (GSECL).

The state government was also supposed to form five more companies including four for power transmission in four parts of the state.

This is the second time in a year that the state government is seeking more time for the board recast. The Centre had extended the earlier deadline of June 30.

Gujarat in August 2003 decided to reorganise Gujarat Electricity Board into subsidiaries handling generation, transmission and distribution.

After the recast, GSECL will handle the generation of electricity. Transmission of electricity will be the task of the Gujarat State Electricity Transmission Corporation Ltd (GSETCL).

Four companies - all subsidiaries of GEB - will be set up in north, south, west and central Gujarat for distribution of electricity.

The government has clarified that the restructuring move is not an attempt to privatise Gujarat Electricity Board, even as unions have reacted cautiously to the plan.