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Seb Cannot Sustain Losses, Says Bengal Minister

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BSCAL
Last Updated : May 11 2000 | 12:00 AM IST

The West Bengal State Electricity Board cannot survive if it continues to suffer losses at the current rate. Its loss in 1999-2000 alone was Rs 717 crore.

Bengal minister for power Mrinal Banerjee yesterday said he had no objection to keeping the board in its present form provided the employees earned enough to make it viable.

The minister was speaking at the inaugural meeting of the board's three-tier joint management council. It was attended by senior officials and representatives of nine recognised unions and associations. Banerjee expressed his displeasure at the high number of associations.

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Justifying plans to carve out the board into several activities, Banerjee said, "At this rate of rural electrification, it will take the board 72 years to take electricity to the remaining 8,000 villages. We have set up the West Bengal Rural Energy Development Corporation to focus on rural electrification. The new corporation can raise loans from the market. But the state electricity board cannot get loans."

There are plans, he said, to bunch all the thermal power generating stations under the West Bengal Power Development Corporation. The state cabinet has also cleared the proposal to set up a hydel power corporation. Bengal suffers from an adverse thermal-hydel ratio of 97:3. Only a separate hydel corporation could ensure a better balance, he said.

However, such reforms should not worry any one, he said. He added, he was all for public sector, but he did not know how long the strong wind of privatisation could be held back when most of the country was opting for privatisation of the power sector.

The minister suggested drastic action against the corrupt elements. "Go for summary dismissal for such corrupt people." he said. The board chairman Gyan Dutt Gautama said the bottomline of all power sector reforms was to increase the operational efficiency.

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First Published: May 11 2000 | 12:00 AM IST

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