Residents fear a tariff hike, unions retrenchment of staff. But MSEB chairperson Asoke Basak, speaking to Sandeep K M, held that consumers could actually look forward to improved services and a slashed tariff if the company were to be set up.

Why did MSEB choose Navi Mumbai for this project?

Navi Mumbai is the fastest growing urban area in the state, and it is only natural that residents who move here will demand the facilities they enjoyed in Mumbai.

Secondly, Navi Mumbai needs the kind of infrastructure that is different from that in our hinterland. But this is difficult in an organisation like MSEB because we cater to the entire state. How can we single out Navi Mumbai though it is essential for its development?

Studies have also shown that we need aninvestment of nearly Rs 1,000 crore to improve networking facilities in Navi Mumbai. This would be possible only after setting up of the company. Moreover, the company will look into bettering revenue realisation and ensuring that bills are paid on time. Most importantly, the move is meant to initiate a culture of professionalism in the service.

Please clarify.

We have reached a point where we believe that we are doing our consumers a favour through our service, when actually, it's the other way around. It's also a question of attitude. If I have a problem with my electric supply, I expect it to be repaired with 15 minutes of my complaint. That does not happen. If services are improved, we can make profits even if we charge a tariff lower than what is charged at present.

How will the tariff be lowered?

I know this will surprise many, but it can be accomplished. As of now, MSEB makes a loss of 33 per cent on transmission and distribution of power. This needs to be cut down to around 12per cent. Once that happens, profits will start pouring in.

For instance, if we distribute 1,000 MU (million units) power in Navi Mumbai presently at the rate of Rs 3 per unit. As of now, only 700 of these 1,000 MUs are billed, the rest is written off as bad debts. Here, I must admit that our own people have a hand in most power theft cases.

But the proposed Company will bring with it accountability and will be able to reduce transmission losses to bearable limits. Even if 850 MUs are billed instead of the 700, we will make a profit, which will be passed on to the consumer through a reduction in tariff.

Moreover, it will be the Tariff Regulatory Commission (TRC) which will be the final authority on the tariff.

But the TRC has not yet been set up by the state...

It is my personal opinion that the project should not be taken up until the TRC is set up. It is essential for the project's credibility.

What about the staff?

The staff will be given an opportunity to either get transferredto the Company or be transferred out of the area. Their jobs will not be in danger, neither will their service records be renewed. In fact, the report recommends that this point be made a clause in the Memorandum of Understanding that is finally signed. Honestly, I don't know what the problem with the unions is. And I don't think any employee will resist transfer to the Company.

But the report itself says that the Company will not be legally bound to take in all the employees presently working in Vashi Circle.

Let me make one thing clear: no employee will be forced to go home as a result of the Company's formation. If the Company does not take them, MSEB will. This is a growing organisation, absorbing a few hundred employees is no big deal.

You spoke of better revenue realisation as a need for improving the financial position of MSEB.

This is because it is very difficult to fix accountability in this huge organisation. As I said earlier, our LT losses are nearly 33 per cent. In BSES, itis around 12 per cent. This means that there is rampant theft of power in areas where we supply - and this is not just in Navi Mumbai. Either my people are involved or they are careless. The Company will have to curb this.

Moreover, though the number of consumers in Navi Mumbai has increased, the billing has remained the same for the last three years. How can that be? The Company will be in a position to cut off power supply if the consumer does not pay up. That has not been happening in MSEB.

Does this mean that MSEB is not able to adapt itself to different situations?

No, I will put it this way. There was a time when people used to say ``Give us electricity.'' Since no private party came forward to put in money for the purpose, the government set up the state electricity boards. But now, the consumers are not satisfied with quantity alone but demand cheap and good quality power. We need to change to meet the changed expectations of the public, this is part of the change.