The Hindu Business Line : Bengal drops plan for more SEB revamp

EFFORTS to further restructure the West Bengal State Electricity Board (WBSEB) in tune with the Electricity Act 2003 hit a major roadblock on Tuesday with the Left Front Cabinet deciding to drop it from its agenda.

Sources said that some members of the Buddhadeb Bhattacharjee Ministry felt that further discussions were necessary before passing the matter at the Cabinet level. They also felt that this matter had to be debated among the legislators when the Assembly meets for a session.

The power department had prepared a 14-page note for the consideration of the Cabinet.

As per the proposal, the WBSEB was proposed to be split into two entities (strategic business units) - one for power distribution and another for power transmission. Two new entities were also proposed to be created for power trading and for taking care of the hydel projects, which are now being looked after by the WBSEB. The present West Bengal Rural Electrification Corporation was also planned to be wound up.

These proposals were in line with the recommendations made by the Subimal Sen Committee which was set up by the government after the enactment of the 2003 Electricity Act.

While the state has already made headway in power sector reforms, by taking out the thermal power stations out of the ambit of the WBSEB, way back in 2002, it was felt that the time was not appropriate for rushing with the remaining portion of the reform programme.

This was so because the Leftists have sought amendment of the 2003 Act as also some more time in implementing it. The Act was slated to be implemented by June 10, 2004 - a year after its enactment.

However, it has been agreed in the Common Minimum Programme of the UPA that some amendments might be necessary and a time extension would also have to be given to the states. A state government source said that it was felt that it would not be right for the CPI(M)-led government to rush into matters in this manner at this juncture.