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May 26th
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Home KSEB KSEB will not be unbundled as directed by centre-Chief Minister

KSEB will not be unbundled as directed by centre-Chief Minister

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The State government has decided to take over the assets and liabilities of the Kerala State Electricity Board (KSEB) as a first step in circumventing the Central dictate to dismantle it and form more than one company in its place. Left Democratic Front  Government in Kerala on 25-09-2008 decided to go ahead with the plan to convert the state electricity board into a company in the public sector as the deadline set by the Centre for unbundling the energy agency expired on 24-09-2008.

The government's stand was put across at a meeting of political parties convened by Chief Minister, Mr V S Achuthanandan at Thiruvananthapuram.

Though the NCP and BJP members turned up at the meeting, the nominees of the saffron party walked out half way through the proceedings alleging that the government was not willing to take other parties into confidence on the matter.

The UDF turned down the invitation for the all-party meet saying it was a farce as the cabinet had already taken the decision on the issue although the fact is that UDF is unable to take a stand this issue as this was happened due to compulsion from Centre Government.
The Government is expected to issue a notification soon setting the process of converting Kerala State Electricity Board into a single company in the public sector. As part of the process, the Board chairman would be re-designated as Special Officer, Government sources said.

The firm stand of the government was that the Centre's mandate to trifurcate the board into three different companies dealing with generation, transmission and distribution was not acceptable.

The Chief Minister told the meeting that such a revamp would pave way for privatisation of the Board ultimately resulting in huge cost increase of electricity as had happened in certain other states.

He said the government would form “one company in place of the KSEB on the basis of the Electricity Act of 2003.” He stressed the word ‘one’ to indicate that the State would not split up its power utility as asked by the Union government.

He said the government would take all measures required to protect the interests of KSEB employees and pensioners.


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