Making Maharashtra State Electricity Board Commercially Viable

Most state electricity boards (SEBs) are incurring large losses. Their nationwide total annual loss was estimated at Rs 10,684 crore in 1997-98. This has emerged as a major constraint on the reform of the power sector. A case study of the Maharashtra State Electricity Board (MSEB) leads to the conclusion that tariff increase, capital restructuring and measures to improve technical performance and managerial efficiency can bring about a substantial improvement in the financial position of the MSEB.