GEB split into seven entities

Companies to focus on power generation, transmission and distribution

The Gujarat Electricity Board (GEB) has been restructured into seven independent corporate entities focusing on power generation, transmission and distribution with effect from January 1, 2005.

"The restructuring is part of chief minister Narendra Modi's initiative to fulfill the growing needs for power in Gujarat," said Saurabh Dalal, minister of state for energy and petroleum.

The seven companies that will take charge with certain modifications would include G ujarat State Electricity Corporation, which will take the responsibility for existing power generation assets; Gujarat Energy Transmission Corporation for power transmission; Gujarat Urja Vikas Nigam, which has been incorporated to act like a power trading company, taking overall responsibility and working of GEB assets, properties and functioning of GEB; and four companies set for the distribution of power in the four zones in the state.

The four power distribution companies include, South Gujarat Electricity Company, Central Gujarat Electricity Company, Western Gujarat Electricity Company and North Gujarat Electricity Company.

Each of these will be headed by a managing director and he will have the power to make independent decisions for purchases of electricity.

"The ambitious decision will usher in new sources of energy to bring about a qualitative change in the power sector, increasing competition, transparency and efficiency in the power generation, transmission and distribution, with a view to increasing the service to the customers," said Dalal.

A coordination committee, headed by Gujarat Urja Electricity Company chairman and managing director, has been constituted to ensure smooth change over in the restructuring of the GEB.

The existing employees, officers and engineers of GEB will be transferred to the new companies concerned and an independent representatives' committee will consider the options and decide accordingly.

The minister clarified that there was no move to privatise the GEB, a move that has met with stiff resistance from unions. In fact, the clause of privatisation, which was part of the Gujarat Electricity Industry (Reorganisation and Regulation) Bill, tabled in the Assembly on March 12 this year, has been avoided.

"There will be no adverse impact on the service conditions of GEB employees," the minister said, adding that this was an attempt to increase efficiency of the electricity company.