The electricity act envisages three companies in place of state electricity boards.. generation, transmission and distribution. The lifecycle of electricity is the basis of this division. What does this achieve? little!
Actually a better division is based on projects, operation and maintenance and administration, and this is the functional division. This division would lead to better management of the Boards. It can also enable better private participation in the power sector.
These three functions -projects, operations and maintenance and administration are of different nature. Usually we rarely see organisations with projects and O&M simultenously. We have many construction organisations. We have machinery production organisations. We have power producers. Due to the difference in the way these three areas carry out their business, a division of this sort will enable better running of the boards if they are retained as such or even if they are split up as companies this division is better.
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