Break-Up and Privatisation of SEB in Andhra Pradesh-An Upcoming Scam

Break-Up and Privatisation of SEB in Andhra Pradesh An Upcoming Scam Arun Ghosh THERE is a new proposal, mooted by the highest political authority in Andhra Pradesh, to break up the Andhra Pradesh State Electricity Board (APSEB) with a view to privatising generation, transmission and distribution. This follows the wholly incorrect and motivated advice of the World Bank to 'unbundle' infrastructure facilities with a view to their privatisation, and the ostensible excuse for this move is the report (submitted in April 1995)of the Hiten Bhaya Committee, two members of which are known to have been making good money as World Bank consultants for the power sector. Since no private party would touch distribution (except in and around the industrial belt of Hyderabad), effectively only generation and transmission of power will get privatised. The process would be wholly to the detriment of the people of Andhra Pradesh and in fact would offer enormous opportunities for private 'rent seeking' (and money making by those in authority, in a position to decide on whom to bestow favours) in regard to the sale of different generating stations in Andhra Pradesh and the existing transmission network. Apart from impeding all future development of the power sector, it would raise the cost of power to consumers and be a major set-back to the development of the state.