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Government Suggests 5 Models For Seb Recast

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Last Updated : Nov 06 1996 | 12:00 AM IST

The models are being offered as options to SEBs, some of which are trying to recover their financial footing.

The SEBs have been told that they may adopt any model (among the five or others).

The five models have two common features - setting up of independent regulatory bodies and privatisation of distribution.

The Centre has made it clear that the SEBs will be entitled to foreign assistance only if they agree to restructure themselves.

Orissa, which has already embarked on a full scale restructuring programme, will receive World Bank loans.

Several SEBs are in the process of starting reforms and are holding negotiations with various foreign lending agencies.

Haryana, Rajasthan, UP and Bihar are applying for World Bank loans to carry out the restructuring.

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They have received recommendations from international consultants appointed to carry out the diagnostic studies.

Gujrat recently agreed to avail of ADB technical assistance while Kerala may opt for assistance from Canada for the same purpose.

The following are the main features: Model 1: Unbundle generation, transmission and distribution; multiple players.Model 2: SEB to continue as a vertically integrated entity. Model 3: Unbundle generation, transmission and distribution, but make SEB grid operating company. Model 4: SEB to give up distribution to a number of small distribution companies, to retain all existing generation and transmission capacity. Model 5: Separate the transmission wing into an independent corporation.

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First Published: Nov 06 1996 | 12:00 AM IST

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