Co to replace MPSEB | india | Hindustan Times
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Co to replace MPSEB

TWO DAYS ahead of Chief Minister?s meeting with the Prime Minister in New Delhi on electricity issues, the State Cabinet today approved formation of a company to replace the Madhya Pradesh State Electricity Board (MPSEB) under the Company Act, 1956. Chief Minister Shivraj Singh Chouhan presided over the meeting.

india Updated: Feb 12, 2006 12:44 IST

TWO DAYS ahead of Chief Minister’s meeting with the Prime Minister in New Delhi on electricity issues, the State Cabinet today approved formation of a company to replace the Madhya Pradesh State Electricity Board (MPSEB) under the Company Act, 1956. Chief Minister Shivraj Singh Chouhan presided over the meeting.

The share capital of the five power companies with the State Government would be transferred to this new company, which will have headquarters in Jabalpur.

The company would manage cash flow as is being done hitherto by the MPSEB. It would also review the works of five power companies working in generation, transmission and distribution besides ensuring coordination among them.

Dissolution of the MPSEB was on the cards for a long time as per the conditions of the Electricity Act, 2003. Ahead of the dissolution of the MPSEB, the State Government had already created five companies and provided them partial autonomy. The measures are part of the power reform process initiated by the former Digvijay Government in the State.

Initially the BJP Government, led by Uma Bharti, resisted the reform process, and autonomy to the five power companies was deferred for over a year. Eventually, the Government yielded to the conditionality of the Act.

Over 58000-odd MPSEB workforce has been protesting the dissolution, fearing that this will lead to privatisation of the power sector and consequent hike in power tariff.

In the meeting convened by the Prime Minister on Monday, Chief Minister Shivraj Singh Chouhan, Energy Minister Kailash Vijayvargiya and Finance Minister Raghavji would take part.

Expansion of the Rajiv Gandhi Rural Electrification Scheme to all the districts in MP is the main agenda for the meeting. Chief Secretary Rakesh Sahni, who is also MPSEB chairman, held a meeting with top officials of Energy Department on various schemes.