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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
v) Government to continue to extend fiscal support during the transition
period, expected to be of five year duration, till the electricity sector
became financially self-sustaining.
Besides the above, the time frame for achieving certain key milestones in
regard to legislative action, restructuring and efficiency improvement was
indicated in the White Paper. Restructuring of MSEB was expected to be taken
up in the year 2003.
10.6 CURRENT STATUS OF RESTRUCTURING
The above schedule for restructuring of MSEB, however, could not be adhered
to. MSEB was subsequently restructured in June 2005 into four companies,
which were incorporated under the Companies Act, 1956. These were:
• A generating company: Maharashtra State Power Generation Company
Limited (MAHAGENCO);
• A transmission company: Maharashtra State Electricity Transmission
Company Limited (MSETCL);
• A distribution company: Maharashtra State Electricity Distribution
Company Limited (MSEDCL); and
• A holding company: MSEB Holding Company Limited holding
Government’s equity in these three companies.
The following was the chronology of events:
October 2003 Government of Maharashtra appoints M/s
PricewaterhouseCoopers (PwC) as reform consultants.
PwC makes several presentations on various alternatives
of industry structures to various stakeholders including
MSEB, Government of Maharashtra, etc.
September 2004 MERC advises on restructuring of MSEB.
October 2004 MSEB forms an 18 member working group along with
consultants to focus on restructuring requirements in
different areas.
January 2005 Maharashtra Cabinet decides on restructuring MSEB into
four companies.
June 2005 Government of Maharashtra restructures MSEB into four
companies and notifies the Transfer Scheme.
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