Kerala will not allow SEB restructuring : Minister

New Delhi, Aug 21 (UNI) With the deadline for restructuring of SEBs ending next month, Kerala has asked the centre to amend the Electricity Act to exempt the state electricity board from being separated into three companies to look after generation, transmission and distribution.

Kerala Power minister A K Balan today met Union Power Minister Sushil KUmar Shinde and reportedly discussed the SEB bifurcation issue in the context of the deadline for the exercise expiring on September 30 in keeping with the provisions of the Central Act passed in 2003.

He said the centre had permitted the state to carve out three companies from out of the SEB and retain them in the public sector.

"There is no question of allowing bifurcation of the SEB in the state," the Minister asserted, while pointing out that the bifurcation of the SEB into three companies would be the beginning of the path towards privatisation, even if they were retained in the public sector.

Asked what was the way out in the context of the centre making clear that all the SEBs should be restructured before September 30, Mr Balan said "the only way out is to amend the Central Electricty Act to exempt the state from bifurcation of its SEB.

In this context, he pointed out that bifurcation was not effective in many states which had already restructured their SEBs into three companies.

During his meeting with Mr Shinde, Mr Balan asked him to change certain rules relating to the release of funds for Rajiv Gandhi Grameen Vidyuthikaran Yojana which seeks to provide electricity to the rural poor. Instead of turn key tenders, he requested the centre to allow the SEB to take up the works under the RGGVJ.

Mr Balan later called on Union Forests and Environment Minister A Raja and sought early clearance for the 163 Mw Athirappilly Hydro Electric Project and also 21 MW Barapole Small Hydro Electric Project.

UNI SH SB RK1935