Patna, Oct. 26: The state cabinet today gave its nod to the scheme for distribution of assets, liabilities and human resource of Bihar State Electricity Board among five new companies.

The new companies would start functioning once the transfer scheme is notified and board ceases to exist. These companies are Bihar State Power Company Ltd (the holding company), Bihar State Power Transmission Company Ltd, Bihar State Power Generation Company Ltd, South Bihar Power Distribution Company Ltd and North Bihar Power Distribution Company Ltd. The headquarters of all these companies would be in Patna.

According to the Central Electricity Act, 2003, state governments are supposed to carry out power sector reforms. The electricity boards would have to be broken up and restructured into companies under the Companies Act, 1956.

“The cabinet today approved the energy department’s transfer scheme under which assets, liabilities and employees have been distributed among the five companies. The restructuring is being carried out to introduce competition in generation, transmission and distribution of power in order to enhance efficiency and provide better service,” said Vijoy Prakash, the principal secretary of the planning and development department who also holds the additional charge of the cabinet co-ordination department.

Prakash clarified that the terms and conditions of board’s employees would not be altered. “The terms and conditions of employees and officers would remain the same. Restructuring would not adversely affect their interests,” he said.

Employees, however, are sceptical. Bihar Jharkhand Rajya Vidyut Parishad Field Kamgar Union general secretary Amarendra Mishra, said: “We shall be satisfied only after seeing a copy of the transfer scheme.”

The energy department on April 2 this year issued a notification appointing managing directors and shareholders of the five new companies.

The cabinet also approved the five-day winter session of state legislature beginning on November 29. Prakash said there would be five sittings of the House during the seventh session of the Assembly and 172nd session of Council.

The cabinet also gave its nod to make EBC students in classes I to X have at least 75 per cent attendance to avail of scholarships. A sum of Rs 580 crore would be spent on the scheme and would benefit about 1.17 crore students, said Prakash adding that 75 per cent attendance, which has been made mandatory for getting scholarship, would help in checking dropouts and would increase literacy.

The cabinet also sanctioned Rs 3.29 crore for Sainik School, Nalanda, and Rs 3.22 crore for Sainik School, Gopalganj, to meet the expenses on scholarships, uniform (school dress) and establishment cost.