Resentment over move to bifurcate Assam SEB

By Barun Das Gupta

GUWAHATI, JAN. 24 After Uttar Pradesh, Assam seems to be heading for a confrontation with its 20,000 power workers over the proposed bifurcation of the Assam State Electricity Board (ASEB).

The State Power Minister, Mr. Hiten Goswami, told reporters here today that there was no alternative to ``massive restructuring'' of the ASEB. Without this, no funds would be available in the power sector, he said.

Mr. Goswami said the Administrative Staff of College of India (ASCI) had undertaken a study for restructuring and revamping of ASEB. Its report, submitted to the State Government last July, had suggested bifurcation of generation-and- transmission and distribution of power. It has also recommended privatisation of the distribution network and corporatisation of generation.

The ASEB has sought the opinion of power experts and leaders of the 22 unions on the report. While the experts agreed with the report, union leaders opposed it fearing retrenchment.

The opinions obtained by the ASEB were placed before the Government a few days ago. The issue is expected to be referred to the State Assembly during the Budget session for a debate.

While reiterating that restructuring was inevitable and the Government's approval was awaited, the Power Minister, however, sought to assure the workers their interests would be ``protected''. However, he did not spell out how. At the same time, he admitted that surplus employees have become a big burden.

Mr. Goswami said ASEB's own power generation was 70 million units per day, while it imported another 170 million units from other agencies. Its dues, outstanding to NEEPCO alone was Rs. 350 crores, while MSEB, NHPC and NTPC together accounted for another Rs. 150 crores. To make matters worse, ASEB's revenue collection very poor. Power pilferage was another problem, the Minister added.

Referring to the controversy about leasing out the Bongaigaon Thermal Power Station (BTPS) of the ASEB to a US company, he said the matter has been referred to a high-power committee set up by the Chief Minister and its report was expected by the month-end.

According to Mr. Goswami, the ASEB initially wanted to revamp the BTPS at a cost of Rs. 170 crores, but could not mobilise the funds. So it went in search of private investors, bringing the US firm, OGDEN, into the scene.

OGDEN's initial offer for revamp was for $50 million (Rs. 175 crores). Later, the company said it would require Rs. 386 crores. The State Government has sought the break up of the amount.

The ASEB is now purchasing power from other agencies at Rs. 1.90 per unit, while OGDEN has demanded a power sale price of Rs. 2.20 per unit which the Government regards as ``very high''.

Mr. Goswami said ASEB's agreement with OGDEN stipulates that the Government would compensate the company for losses suffered by it for law and order problems and for fuel supply shortage. He wanted this clause deleted.

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