Mseb, Cidco To Set Up Pvt Company For Distribution

The Maharashtra State Electricity Board (MSEB) has roped in state-owned counterpart City and Industrial Development Corporation (Cidco) for setting up the state's first private company for power distribution to Navi Mumbai.

MSEB will hold 26 per cent equity in the company and Cidco 25 per cent, with the remaining to be bid for by a company or consortium. The government will invite tenders from corporates to participate in the company.

MSEB's plan to privatise power distribution is underway despite the fact that there is no asset audit available for the region.

A private distribution network, it is hoped, will increase the state electricity board's revenues. The transmission and distribution losses of MSEB in the Navi Mumbai circle stand at 21.71 per cent, the highest in the state. It also compares poorly with T&D losses of 11.71 per cent in BSES's area of distribution (north Mumbai) and 12.18 per cent in BEST area (south Mumbai _ Island city).

Cidco has been the development agency for the entire 470 sq km Navi Mumbai stretch since its inception. Infrastructure Leasing and Financial Services (ILFS) has been appointed as advisor to MSEB for preparing a feasibility report on the region.

The MSEB is currently not financially sound to cater to the region's demands and, hence, the plan for setting up a joint venture for distribution in the region. However, the joint venture proposal is facing stiff resistance from MSEB employees in the area.

The Vashi circle has 975 employees, including 81 engineers and 578 technical staff.

The MSEB top brass has recognised that the only way to bring the employees around to the privatisation viewpoint is through public pressure. Consequently, a seminar has been organised by the Rotary Club of Navi Mumbai on the subject. Shiv Sena MP Prakash Paranjape, MSEB chairman Asoke Basak and Cidco MD Vishwas Dhumal will participate in the seminar, which promises to be a brainstorming session.