Wbseb For Cesc Liquidation To Recover Dues

The West Bengal State Electricity Board has sought the state government's permission to file a suit in the court for liquidation of the CESC Limited for recovery of its dues.

Alternately, the Board has suggested that it be allowed to file a civil suit for the recovery of its dues which it estimates at around Rs 750 crore.

A resolution to this effect has been passed at the Board's last meeting, and then referred to the state power department.

The two options, Board sources said, are in addition to a resolution passed by the Board at its meeting on December 22, 1998, requesting the state government handing over to the Board `the entire western side of the river Hooghly from the command area of operation of CESC Limited by WBSEB. This would help the Board to adjust its outstanding dues with the purchase price of the assets of CESC'.

 

The CESC managing director, Sumantra Banerjee said on Tuesday, "It is unfortunate for the WBSEB to take such a precipitative step. We shall also present our case at the appropriate forum."

Senior Board officials said the legal options suggested at the Board's meeting on April 3 were not opposed by the two state government members - the secretaries in the departments of finance and power.

Though filing a legal suit is well within the jurisdiction of the Board, it has sought the state government's consent considering the wider implications.

The only other option to put pressure on the RPG power utility is to regulate supply of power. But, that is ruled out as this would inconvenience the 15 lakh CESC consumers who have not defaulted in paying their bills to the CESC. Moreover, legally, they are primarily WBSEB's consumers who are being served through the CESC as a licencee.

Board officials said the earlier resolution to hand over the Howrah portion of the CESC's command area is the best option.

Either of the civil suits seeking liquidation of the company or seeking the court's order to ask the CESC pay up, will take a long time to resolve, fear Board officials. But, the state government which has remained silent for nearly 18 months over its earlier request over slicing out the Howrah areas from the CESC and hand it over the Board, has not responded to the Board over the recent resolution too.

However, Board officials are confident that the minister will shortly take a hard decision. After all, the minister called a news conference recently to announce that `the Board will have to take very harsh steps to realise its dues from its consumers'.