Maharashtra Power Firms Will Not Be Privatized, Says Fadnavis
Maharashtra's three government-owned electricity firms -- Mahatransco, MSEDCL or Mahavitaran, and Mahagenco -- will not be privatized under any conditions, asserts Chief Minister Devendra Fadnavis.
The primary goal of the government was to ensure that the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) becomes debt-free, enhances its efficiency, and offers improved services to customers, he states.
MSEDCL currently carries a debt load of approximately Rs 80,000 crore, leading to a significant interest burden for the company. The CM states that the government has approved the restructuring of MSEDCL, and significant actions are underway to bring about the company's initial public offering (IPO).
“The three state power companies (Mahatransco, MSEDCL and Mahagenco) would not be privatised under any circumstances,” Fadnavis said at a meeting with representatives of the Maharashtra State Electricity Employees, Engineers and Officers Action Committee at Sahyadri Guest House here.
He stated that a committee would be set up to study the “Haryana pattern” for ensuring social and economic security of contractual workers.
“The government’s objective was to make MSEDCL debt-free. Reducing the debt burden will strengthen the company financially and help it use its resources more effectively to provide better services to consumers,” he says.
Also Read: Food Ministry and FCI Sign MoU to Improve Operational Efficiency
Fadnavis asserted that the state had resisted parallel licensing in the power distribution sector and emphasized the importance of reinforcing government-owned energy firms to enable them to compete with private sector rivals.
The CM observed that the government was exploring several alternatives to enhance distribution systems and the efficiency of state-run power companies. Regarding franchise models, Fadnavis emphasized that franchising should not be synonymous with privatization and mentioned that the model had demonstrated favorable outcomes in regions like Bhiwandi, Mumbra (Thane district), and Malegaon (Nashik district).
Also Read: PM Modi to Host 11-Nation Summit at the BRICS Business Forum
Power distribution losses in Malegaon, previously over 50 percent, have decreased to 36 percent, he informed the meeting. The government might explore the franchise model in a restricted way in certain regions to tackle persistent issues, Fadnavis states.
Maharashtra needs about 20,000 MW of extra power generation capacity in the next five years, and measures are being implemented to fulfill the expected demand, he stated. He stated that the IPO contributes to MSEDCL’s efforts to enhance its financial status, noting that the restructuring would improve its balance sheet and assist in raising funds to handle liabilities of approximately Rs 33,000 crore.
Also Read: Tonino Lamborghini, GTB Developers Partner for ECR Luxury Homes
According to Fadnavis, the IPO is anticipated to enhance transparency, foster financial discipline and efficiency within the company, while also generating fresh investment opportunities in the power distribution industry.
A board of directors meeting for MSEB Holding Company, led by Fadnavis, covered topics such as MSEDCL’s restructuring, financial fortification, IPO readiness, appointments, and upcoming reforms. The meeting also addressed the appointments for the roles of director (finance) and regional directors in MSEDCL, as well as positions in MSEB Solar Agro Power Ltd.