Trifurcation of MSEB pays off
Maharashtra's crisisridden state-owned energy sector is showing some signs of turnaround. For the first time since the state trifurcated the Maharashtra State Electricity Board in 2005, the three independent companies dealing with generation, transmission and distribution have made profits in the financial year ended March 31, 2007. State energy minister Dilip Valse-Patil told ET that the companies will invest the profits in infrastructure development projects. Energy ministry sources said MahaGenco had made the maximum profits as it was only tasked with generation of power unlike MahaDiscom and MahaTransco, which incur heavy losses in transmission, distribution as well as recovery of bills due to a host of subsidies. Maha Discom, for instance, has to take a hit of Rs 1,500 crore per annum on account of free power to farmers.The minister, however, claimed MahaDiscom has been able to reduce transmission and distribution (T&D) losses by 12% in the last three years.Reduction of 1% in T&D losses means a saving of Rs 180 crore.The profits augur well for the public sector companies as the state government has taken on a major capacity addition and infrastructure upgrade programme.In the generation sector, the state’s 2,000-mw Rs 12,000-crore capacity addition plans are near completion. These include two units at Paras and Parali of 250 mw each, 2,000 mw capacity addition at Bhusawal and Chandrapur, 1,980 mw project at Koradi, and 500 mw at Khaparkheda.For the capacity addition plans at Chandrapur and Koradi, MahaGenco has tied up for supply of coal, water, equipment and obtained all clearances including environmental.