Expert suggests road map after BSEB unbundling

Bihar government likely to convert 5000 Crs loans to SEBs into equity. To start with, the Bihar government has informally decided to go ahead with the proposal, said Sushil Kumar Modi, deputy chief minister, who also heads the empowered committee of state finance ministers.

Bihar government is giving final touches to the much-awaited restructuring plan for the state-owned, loss-making Bihar State Electricity Board (BSEB) for paving the way for the entry of private players in the power sector.

In this regard, Sunil Wadhwa, MD of North Delhi Power Limited (NDPL), a joint venture between Tata Power and Government of Delhi for power distribution, gave some tips to Bihar for a turnaround in the power scenario after the BSEB unbundling, during his visit to Patna last week. He said that Bihar’s situation was similar to that of Delhi at the time of unbundling of Delhi Vidyut Board (DVB) in 2002. He also made a power-point presentation here before energy experts and government officials and stressed the need for robust energy accounting and auditing practices. He said a large number of unmetered consumers, old and worn-out distribution network, high transformer failure rate and cumulative losses to the tune of Rs 5,000 crore at the end of FY10 have made the situation bad in Bihar.