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July 11, 2001
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Privatise, revamp MSEB, says Godbole report

Swati Kulkarni in Bombay

The Godbole committee has recommended the organisational restructuring of MSEB and carrying out more reforms to strengthen the state's power sector.

Madhav Godbole (middle) submitting the report on state energy sector reforms to Maharashtra CM Vilasrao Deshmukh The panel also mooted the trifurcation of the state electricity board into generation, transmission and distribution segments. The committee said that some of these segments be privatised and that teh agricultural tariffs be rationalised.

The report was submitted to Maharashtra Chief Minister Vilasrao Deshmukh by Madhav Godbole, chairman of the energy review committee appointed by the Maharashtra government to look into the restructuring of the state energy sector, at Mantralaya in Bombay on Wednesday.

The committee was to examine the possibility of corporatisation of the state electricity board, too.

While the committee has recommended privatisation of power distribution and power generation, it has suggested that the state government retain transmission as its privilege.

Godbole told Deshmukh that the consumer could then be allowed to exercise his choice of power supply company.

The recommendations are in keeping with the model followed by states like Orissa, Andhra Pradesh, Uttar Pradesh, Haryana and Karnataka where the SEB has been unbundled into different units that will take care of generation, distribution and transmission.

The 100-page report (excluding annexures) aims at ushering in greater operational efficiency and cutting transmission and distribution loss. The current T&D loss of the electricity board is pegged at 40 per cent on the basis of a sample survey of 1,300 consumer points (meters).

The committee had considered many models, but its recommendation for MSEB would be based on the requirements of the state. This, sources said, has been touted as the Maharashtra model.

State Deputy Chief Minister Chhagan Bhujbal, Minister for Energy Padamsinh Patil, Minister of State for Energy Rajendra Darda, chief secretary to the state government V Ranganathan and principal secretary (energy) V M Lall were present when Godbole handed over his report.

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