Kerala sticks to its stand, would not split power board

September 27th, 2008 - 9:47 pm ICT by IANS  

Kozhikode, Sep 27 (IANS) Kerala Electricity Minister A.K. Balan Saturday said the state government will stick to its decision to restructure the Kerala State Electricity Board (KSEB) into a single company in the public sector. The government will not oblige the central government demand to split the board into different companies in the generation, transmission and distribution sectors, the minister said.

“The state’s difference of opinion with the central government on restructuring the KSEB is more likely to get settled in a court of law,” he told reporters here.

“In the Electricity Act 2003, there is an option to restructure the state electricity boards into a company or companies. When there is such an option we are not ready to restructure the board into many companies,” Balan said.

“Either let the centre vouch the state’s decision is wrong or let a court of law say what the state is saying is against the law,” he added.

In its move to restructure the KSEB as required under the act, the Kerala government had issued an order Wednesday vesting the assets and liabilities of the board with the electricity department.

“Now, the government will re-invest the assets with a company in the public sector so that we will have the power generation, distribution and transmission under a single company,” the minister said.

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