The Hindu : Partial power reforms effected

Online edition of India's National Newspaper
Thursday, Jan 02, 2003

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Other States - Bihar

Partial power reforms effected

PATNA JAN. 1 .Partial reforms in the power sector came into force from today with the introduction of separate accounting system for three `functionally independent' units for generation, transmission and distribution.

However, all the units would function under the overall control of the Bihar State Electricity Board (BSEB) pending a report from a high level committee constituted to suggest administrative and financial steps to facilitate independent functioning of the three wings.

BSEB sources said the committee would be headed by the Board chairman, K A H Subrahmanium, with representatives from finance and energy departments, National Thermal Power Corporation and Powergrid Corporation. The committee had been asked to submit a report within a month for approval by the Board followed by clearance from the State Government, the sources added. The Board hastily took the step after a visit here by theUnion Power Secretary, R V Shahi, last Saturday when he expressed displeasure over the `dilly dallying' attitude of the State Government over the reforms in the power sector.

With the twin objective of avoiding the wrath of the Centre and keeping engineers and employees of the Board in good humour, the BSEB initiated half- hearted measures to avail Central grants under the Accelerated Power Development Reform Programme.

The State Government signed an MoU with the Centre in September 2001 to trifurcate the BSEB into three independent profit centres for generation, transmission and distribution, by year end.

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