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MSEB should be privatised, says Godbole panel

Even as Maharashtra grapples over its energy crisis with US energy major Enron, Godbole review committee has recommended outright "privatisation" of the loss-making state electricity board's distribution network and generation unit in the second part of its report to be submitted on July 11.

"The report outlines path breaking reforms, which not only suggests restructuring of MSEB, but also makes its clear that its once-a-very-good board will be destroyed, if it continues as a government body", official sources told PTI in New Delhi on Sunday.

The report would be submitted to the state chief minister Vilasrao Deshmukh on Wednesday morning, sources said.

"The committee has recommended that MSEB's government ownership should be dissolved, however, the control of transmission network should rest with it".

"MSEB's current assets are close to worth Rs 120 billion and once cabinet approves the proposal following submission of the report, process like inviting tenders from private parties may be taken up", officials said.

According to the report, the interested companies would have to infuse capital investment in the distribution and generation networks with an increased rate of return at about 4.8 per cent, sources explained.

The 200-plus pages report draws a detailed road map for the need to privatise MSEB, a different model from what was implemented in other states, sources added.

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