Ranchi: The state Cabinet today gave approval to the proposal for the division of the Jharkhand State Electricity Board. Chief Minister Hemant Soren announced the approval during a meeting of the Cabinet held at the state Cabinet Secretariat at Project Building.
The principal secretary of the Department of Energy, Government of Jharkhand, Vimal Kirti Singh, said the proposal for dividing the JSEB into four parts was given approval under the Structure of Reform of the year 2003.
He said each of the four companies will be headed separately by a managing director. This arrangement is expected to bring in profit to the companies and ensure higher performance levels.
Singh further said that the state government will bear the liabilities worth Rs 4400 crore after the division of JSEB. He said a bank guarantee of Rs 22 crore will be given while Bank of India will issue bonds worth Rs 2200 crore. The Central government will provide Rs 1100 crore for the purpose.
The principal secretary further said that the state government will give Rs 2500 crore to the Damodar Valley Corporation (DVC). Besides this, the government will spend Rs 1500 crore on the expansion of Tenughat Vidyut Nigam Limited (TVNL). He said the settlement of liabilities of the holding company and the employees of the distribution companies will be done within a year.
“Power Finance has been appointed advisor. A team of World Bank will come and inspect the work of the companies. Within three or four months, the companies will start working. No employee will be removed. We will require an additional workforce of 10,000 employees,” said Singh.
The principal secretary said the companies will be known as Jharkhand Energy Development Corporation Limited, Jharkhand Energy Supply Corporation, Jharkhand Energy Production Corporation Limited and Jharkhand Energy Distribution Corporation Limited. The registration of the companies has been done previously.
Jharkhand Energy Distribution Corporation Limited will be the holding company. Its managing director will be SN Verma. APS Jha will be the MD of Jharkhand Energy Supply Corporation Limited while Kamal Kumar Sone and Vikram Gaur will be the MDs of Jharkhand Energy Production Corporation Limited and Jharkhand Energy Distribution Corporation Limited respectively.