Report of Indian Institute of Public Administration ... - Ministry of Power

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Proposals under consideration are to corporatise the business of the WBSEB into two
successor entities:
i) The State transmission utility and the SLDC; and
ii) Separate strategic business units (SBUs) for undertaking the functions of Trading
and Hydropower. Three SBUs for distribution of electricity.
Financial restructuring proposals include:
i) Writing-off of a substantial amount of outstanding principal with the State
Government, along with accumulated interest. The balance debt would be
serviced by the successor entity;
ii) Settlement of power purchase liability of WBSEB to WBPDCL;
iii) Recognition of the unfunded employees liability and carrying it on the opening
balance sheet of the successor entities to the WBSEB; and
iv) Under-valuation of hydel assets of Teesta and the Purulia Pump Storage Project
in order to enhance the competitiveness of those hydel assets by reducing the
fixed costs.
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