Maharashtra clears unbundling of MSEB

Govt may, however, defer implementation by 3 months

Maharashtra's cabinet of ministers today cleared the decks for the unbundling (read privatisation) of certain segments of the Maharashtra State Electricity Board (MSEB), even as chief minister Vilasrao Deshmukh admitted that the free power sop for farmers had resulted in a 21 per cent increase in power consumption in the state.

However, according to well placed sources in the MSEB, the state government, which is facing stiff opposition from the workers' unions, is likely to postpone the move by three months.

A plan for the restructuring of the MSEB was prepared in June this year and is to be brought before the state cabinet next Wednesday.

Addressing mediapersons after the weekly cabinet meeting Deshmukh said that with the provision permitting the entry of private power utilities in the Electricity Act 2003 coming into force in December, the, the MSEB would have to transform into a competitive power major.

"We were given a presentation of the power situation in the state according to which the power requirement and availability mismatch would touch up to 7000 MW by 2010, if further generation capacities are not raised," energy minister Dilip Walse-Patil told mediapersons later.

It would be possible for even a cooperative housing society, under the Act, to procure power from regions such as north east India and supply it in Maharashtra, he added.

Patil empahsised that the restructuring of the MSEB did not mean the state power utility was being sold off to private entities. "In fact the roadmap for MSEB is to unbundle into distinct regional profit centres as against it current mammoth disposition."

Patil said the state was looking at capacity building options at the Uran power plant of the MSEB as the fastest option.

About the availability of gas for this plant he said: "GAIL India's gas pipeline is scheduled for completion in June 2006. Similarly Reliance will also provide gas and with a Union government delegation currently in Iran for LNG supply from there to India, the same can be regassified to boost the Uran plant."

In another development, the state cabinet today agreed to impose a new work culture in the state secretariat, where ministers would have to attend office for a mandatory four days of the week.

Chief minister Vilasrao Deshmukh said: "All my cabinet colleagues, by consensus, have agreed that four days in the week they would attend their offices in Mantralaya, while the rest of the week would be spent in their respective constituencies.

Letters will be issued to all ministers, who would also be required to communicate in written in case they are unable to attend office any of the four days."