Under the new 'Bihar State Electricity Reforms Transfer Scheme 2012', the BSEB has been unbundled into five companies: Bihar State Power Company Limited (the holding company), Bihar State Power Transmission Company, Bihar State Power Generation Company, South Bihar Power Distribution Company and North Bihar Power Distribution Company. Bihar State Power Company Limited will own the shares of the newly-incorporated four other companies.
In exercise of the powers conferred by Section 131, 133 and other applicable provisions of the Electricity Act, 2003, Bihar government has made the scheme for providing and giving effect to the transfer of properties, interests, rights, assets, liabilities, obligations, proceedings and personnel of Bihar State Electricity Board (BSEB) to the transferees and for matters incidental and ancillary thereto. The scheme shall extend to the whole of Bihar and also to those outside the state.
The government notification, issued by energy secretary Sandeep Poundrik, categorically said the officers and employees of BSEB shall have continuity of service. Their service conditions would not be inferior to the present service conditions and in case the transferee companies did not fulfil any service condition, the state government guaranteed and shall ensure through the holding company continuance of those benefits.
The documents available with TOI show that these provisions would not be applicable to new employees appointed in the transferee companies after the effective date of restructuring.
The Bihar cabinet had approved the unbundling proposal at its meeting on Friday last. The state government will spend an estimated Rs 14,099 crore in the next five years on the financial restructuring plan. The state government's contribution will be paid to the five companies in advance in two instalments every year, i.e. by May 31 and November 30. The successor companies will be contributing on monthly basis by 7th of the following month.
"At any time within a period of one year from the effective date, the state government may, by order to be notified, amend, vary, modify, add, reduce, delete or otherwise change terms and conditions of the transfer terms," the notification said.
The four area offices of BSEB - Pesu, Patna central, Magadh and Bhagalpur - have been regrouped to form one company, i.e. South Bihar Power Distribution Company Limited. Consequently, Pesu (east), Pesu (west), Ara, Nalanda, Gaya, Rohtas, Bhagalpur and Munger circles will constitute the South Bihar Power Distribution Company Limited. Three area offices - Tirhut, Mithila and Kosi - have been combined to form another company, i.e. North Bihar Power Distribution Company Limited. Consequently, Muzaffarpur, Chhapra, Motihari, Darbhanga, Samastipur, Saharsa and Purnia circles will come under the North Bihar Power Distribution Company Limited.
The BSEB currently has nearly 1,700 officers and 14,850 employees. Its installed generation capacity is 559.2MW. On August 2, 2011, the state cabinet had given its in-principle nod to unbundling of the BSEB.