The CM gave the order during a high level review meeting of the electricity board here, an official statement said.
The state which is power starved is losing a large amount of electricity due to theft and transmission losses.
The meeting also discussed the proposal to bifurcate into five companies. These include one holding company, transmission company, generation company and two distribution companies, the statement said quoting Chief Secretary A K Sinha.
The CS said the proposed bifurcation was aimed at bringing the transmission loss down from 40 per cent to 24 per cent in five years. Presently, the state government is providing an assistance of Rs 180 crore per month to Bihar State Electricity Board (BSEB) which comes to Rs 2160 crore annually.
After creation of separate companies, the state government would not be required to provide any financial assistance to BSEB.
Establishing separate companies would facilitate loan on easy terms for them besides paving way for there professional management, the statement added.
The CS said that division of BSEB into different companies would not affect interest of employees and pensioners.