FOCUS: MAHARASHTRA

A pioneer in the power sector

A CORRESPONDENT

THE Maharashtra State Electricity Board (MSEB), which has powered the all-round growth of Maharashtra, is legally responsible for generation, transmission and distribution of electricity in the State.

The MSEB has many firsts to its credit. It was the first State electricity board in the country to commission a 10 MW power station (at Khaparkheda in 1950); to commission a 60 MW gas turbine unit (at Uran in 1982); to introduce bag filter technology in thermal plants to reduce pollution; to set up a pilot project to extract alumina from flyash (at the Koradi Thermal Power Station, with the assistance of the Central Power Research Institute (CPRI), Bangalore); and to introduce the operating cost centre concept, a step towards share market power sale.

The MSEB's future plans reflect its pioneering efforts in ensuring steady and efficient power supply. The projects include the 250 MW Parli TPS extension Stage I (this proposal got the techno-economic clearance of the Central Electricity Agency (CEA) in July 1999, but is awaiting the Planning Commission's approval); the 1,000 MW Bhusawal TPS expansion; the 60 MW fluidised bed boiler based unit at Chandrapur; the 400 MW Uran Gas Turbine expansion project; and the 250 MW Paras TPS expansion project (this project has been planned as a joint venture).

The MSEB is noted for its pioneering innovations in the power sector. It was the first electricity board to conduct successful online mock trials for Y2K (year 2000) compliance with all agencies in the State power sector - the Tata Electricity Company, the Brihanmumbai Electric Supply and Transport (BEST) company and the Brihanmumbai Suburban Electric Supply (BSES). It is the first SEB to set up a 752 km, 500 kV high voltage direct current (HVDC) system (from Chandrapur to Padghe); the only board to have a 400 kV Ring Main System linking 400 kV substations for bulk power transmission; and the first to have fully computerised load despatch centres (at Kalwa and Ambazari) with RTVs (rural transport vehicles) for data collection all over the State for supervisory control and data acquisition (SCADA).

The board has made Maharashtra a leading State in power development with the highest installed capacity - 15,144 MW - in the country. It has the biggest transmission and distribution (T&D) network, including 400 kV lines. Maharashtra has the highest per capita power consumption - 667 KWH (the national average is 335 KWH).

However, in the last few years, the MSEB, mired in financial problems, has been unable to provide its consumers electricity at reasonable rates. Although there is a lot of scope to improve the functioning of the board, it has some weaknesses to correct, the greatest being the distribution system and customer services. Large-scale T&D losses and the resultant revenue loss running into crores of rupees have placed the board in a difficult position.

In order to find a way out of the current situation, representatives of the management and the various employee unions in the MSEB have finalised an internal reforms programme. The reforms include making necessary improvement in the MSEB's functioning, fixing responsibility, and devolving powers where required. In cases where responsibilities are not carried out, penalties are suggested. There are also rewards for good performance.

The main objectives of the reform measures are: reducing T&D losses from 39 per cent to 27 per cent in three years and again to 16 per cent after three years; increasing revenue in a time-bound manner; assigning responsibility for energy accounting at various levels; computerising the operations; recovering arrears and putting in place a system to collate figures and information accurately; reducing expenditure, especially by redeploying manpower, in order to improve the financial position; and providing better services.

Ashok Basak, Chairperson of the board, is hopeful that the proposed reforms will optimise customer service and streamline the functioning of the organisation. It will also make the transmission and distribution of power more efficient, the benefits of which can be passed on to the consumers, he says.

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