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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Q.2. When was the process of restructuring initiated? Please provide
chronological history. (Major events such as policy announcement, law
enactment, relevant notification, restructuring of SEB).
Answer - When EA, 2003 (Act) came into force on 10 June 2003, the functions of
West Bengal State Electricity Board were (a) Generation of electricity in
Hydel sector, (b) Transmission of electricity. (c) Function of State Load
Despatch Centre, and (d) Trading of electricity. Section 39 of the Act
required formation of a State transmission Utility, which shall not
engage in the business of trading in electricity. As per requirement of the
Act, in restructuring the State Electricity Board, in July 2003, the
Government of West Bengal constituted a Committee, namely the State
Level Committee on Restructuring of Distribution System in the Power
Sector, for recommending the process of the restructuring. Advice for
WBERC was sought for as per Section 86(2) (iii) of the Act in the
matter of reorganisation and restructuring of the electricity industry in
the State. The State Level Committee submitted its report in December
2003. Decision by State Government on the report was kept pending for
some time. In the meantime, it was decided to broaden the restructuring
agenda for the State and bring WBPDCL (Government company for
thermal generation) and DPL (Government company engaged in
generation and distribution in Durgapur area) in the restructuring fold.
Accordingly, Expression of Interest for advisory services was sought for
through advertisement for comprehensive restructuring of Government
power Utilities against Terms of Reforms for the study prepared in
consultation with energy specialists of World Bank and DFID. Finally,
M/s. PricewaterhouseCoopers was engaged as the consultant.
Q.3. Was there any policy statement of the State Government before
embarking on reforms? Please provide copies of the policy statement.
Answer - The restructuring of the State-owned power Utilities has been taken up
under the State Government’s policy for the restructuring of its PSUs
that evolved over 2003-05. This was formally announced by Chief
Minister in a National Workshop on PSU Restructuring in Kolkata on
18 May 2005. No separate policy statement was issued in this respect.
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