JERC okays corporatisation move
Source: The Sangai Express
Imphal, February 09 2013 :
SBI Caps' suggestion to corporatise Electricity Department and divide distribution, transmission and generation components into separate sections has been approved by the Joint Electricity Regulatory Commission (JERC) .
JERC has also suggested to pay extra attention on distribution as it is at this section where maximum power is lost.
According to an official source, the State Government hired SBI Caps as consultant for assessing assets of Electricity Department before converting it into corporation.
The assessment report was then sent to Aizawl based JERC for its opinion.
JERC has also made it clear that it has no objection to division of distribution, transmission and generation components into different sections.
Nonetheless, it suggested the State Government to pay extra attention in distribution section in view of the maximum power loss recorded in this section.
It is said that almost 67 per cent power is lost in transmission and distribution.
Officials of SBI Caps would arrive here next week to discuss their assessment report with officials of the State Government, informed the official.
SBI Caps has already estimated that corporatisation of power department would require Rs 1000 crores for payment of retirement benefits to around 4000 employees of the department.
As calculated by SBI caps, the present assets of the department are worth Rs 125 crores in transmission component, Rs 270 crores in distribution component and 20 cr in generation component.
As for the projects currently under progress, the transmission component has assets worth Rs 225 crores while the distribution component has assets worth Rs 280 crores, added the official.