Saturday, May 21 2005 10:05 Hrs (IST) - World Time -

Mumbai: Maharashtra Cabinet yesterday (May 20, 2005) approved the division of the Maharashtra State Electricity Board (MSEB) as per the provisions of the Electricity Act 2003.

The division will take place before June 10, which the Government had set while principally agreeing to MSEB's division, Maharashtra Energy Minister Dilip Valse-Patil told reporters after a special Cabinet meeting at the Chief Minister's residence in Mumbai late last night.

"MSEB will cease to exist from the day the division comes into effect and thereafter, four new companies, namely holding company and three companies for generation, transmission and distribution, will come into existence," the Minister said.

All four companies will be fully Government owned and therefore, employees should not fear about their future, he said.

"The Cabinet in its meeting today has approved to enter into a tripartite agreement with the employees' to allay fears about their future following the division," he added.

Valse-Patil said that the Electricity Act 2003 has ensured that the employees' rights are protected and they get a better deal. "The issue of division of employees among the four new companies will be decided in due course of time taking employees' unions in confidence," he said.

Commenting on the asset division of MSEB, Valse-Patil said to begin with it will be done on the book value, but the business value evaluation will be done in six months to decide exact equity of the Government in these companies.