The right connection

Calcutta, Feb. 8: The West Bengal State Electricity Board (WBSEB) plans to sell its five gas-turbine plants that together generate 100 MW and is on the hunt for buyers.

“The board is considering how to dispose these plants. To make the process transparent, a proper valuation will have to be carried out,” WBSEB sources said.

The sale plan is part of the Subimal Sen Committee report on revamping the way Bengal produces, wheels and sells energy. Sources say hive-off is the most feasible option for a board that is still groaning under the weight of losses and sorely needs the money the deal will bring.

“The modernisation of these plants requires funds. It is not possible to provide money at this juncture. In any case, we are stressing on improvements in the transmission and distribution system, whose losses are eating into our revenues,” a senior WBSEB official said.

The board is waiting for a nod from the state’s power department before going ahead with the sale. “We are preparing our ground so that the process can be speeded up once we get the clearance,” sources added.

The department is examining the proposals of the Subimal Sen Committee. “We are going through the report. A decision will be taken by the state government shortly,” said a senior power department official. The government has until June 30 to make up its mind.

While sale is one of the key items on the board’s agenda, it is also going ahead with its drive of strengthening the transmission and distribution system. The board has sent proposals worth Rs 250 crore to Power Finance Corporation and Asian Development Bank for projects to be executed in this area. “This is in addition to the loan from Japan Bank of International Co-operation,” said senior officials of WBSEB.

Meanwhile, the board has proposed for a 12.5 per cent tariff hike for 2004-05, including an interim raise of 7 per cent, if the final structure is not approved before April 1. It expects to garner Rs 4,428.22 crore from the increase.

There are also plans to introduce identical tariffs in rural and urban areas for domestic, commercial and industrial customers under low and medium-voltage categories.