Can Corporatization Save Power Sector?

Asian Development Bank (ADB) consultants suggest Corporatization as the only effective way to save Kerala State Electricity Board (KSEB) and suggested introduction of operating profit centers.
A development program for the sector follows the recent loan assistance from ADB.
The new operating profit centers proposed by the state government are

• Generation and transmission profit centers and
• Regional distribution profit centers at Thiruvananthapuram, Kochi and Kozhikode.

Under the restructuring plan State Government and the employees will own the new entity jointly.

Centralized control will be continued for planning finance and accounting and the Government's role will be as a major consumer and provider of law and order support.

Representatives from business, law, unions sectors will be constituting and consumers and selected by a committee

On the other hand Power Minister Kadavoor Sivadasan said no agreement has been reached between the Board and the Asian Development Bank. He said talks on the issue were in progress and the bank put no demands forward.

The tariff regulation commission was in accordance with the Central law and the LDF government took the decision regarding three profit zones. Power minister says the government has not yet taken a decision in this regard.