Patna, Oct. 31: The energy department today issued a notification to complete restructuring of Bihar State Electricity Board (BSEB) to bring professionalism in the power sector and ensure better services to consumers.

Outgoing BSEB chairman P.K. Rai confirmed to The Telegraph about the issuance of the notification by the energy department, following which all five new companies — Bihar State Power (Holding) Company Ltd, 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 — would formally start functioning with effect from November 1 (tomorrow) in their respective fields.

The five new companies would have their headquarters in Patna and take charge from the board for generation, transmission and distribution work in the state.

The energy department had in April this year issued a notification appointing managing directors (MDs) and shareholders of all the five companies. This was done to get the five companies registered according to the Companies Act, 1956.

BSEB incumbent chairman P.K. Rai would be the chairman-cum-managing director (CMD) of the holding company, while Tun Tun Jha, Lalan Prasad, Rana Awadhesh and V.C. Gupta would head transmission, generation, south and north Bihar distribution companies, respectively.

“This will not only ensure professional efficiency, but will also make the companies accountable. The companies will be in a position to get easy loans from financial institutions. The ratings of the firms will be very high because the government has absorbed their liabilities. The companies will start from scratch for better,” Rai said.

The state cabinet had last week approved the transfer and distribution of assets, liabilities and human resource of Bihar State Electricity Board to the five companies.

The cabinet had made it clear that the terms and conditions of the board’s employees would not be altered, as the conditions would remain same under these companies like it existed under the board.

The state government would spend around Rs 14,099 crore in the next five years on the financial restructuring plan, principal secretary (cabinet coordination department) Vijoy Prakash had said.

On the benefits of the restructuring scheme, power expert and former Bihar Electricity Regulatory Commission member S.M. Sahay said: “The companies can start afresh because there is no liability at present. Their management is free from the government. The firms can take their own decisions. Besides, the companies will be responsible and accountable for their own actions.”