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KSEB – Why it should be dismantled and privatised

Kerala State Electricity Board (KSEB) is one of the most inefficient and useless departments. Over years this department has been roting steadily. Instead of improving power situation and improving their service, they are looking for cheap popularity stunts such as million CFL campaign. Instead of increasing power production, they are asking people to switch of fridge in the evening. And remember, the polio vaccine they give to your child is also stored in a fridge.

It is like cutting your leg to fit it in the shoe.

KSEB has been increasing electricity bills under various heads. There is nothing called “customer service” in KSEB’s dictionary. But they are good in assaulting customers.

Recently I got a bill from KSEB and was stunned by the “terms & conditions” at the back of the bill. It says,

  1. If we don’t give you bill or you don’t get a bill, you will be responsible for this incident.
  2.  If you are not at home when we come for billing, we will disconnect your electricity connection. You will have to then beg to us and pay us re-connection fees.
  3. If you use more electricity, we will charge any money we find suitable.
  4. We will keep a huge amount of deposit money and will also charge rent for a meter which you had purchased from us.
  5. You will have to stand in a big queue to pay your bill. We think standing in queue is good exercise.

It is urgent that central government takes serious action to dismantle KSEB. Kerala government has been resisting the move since politicians fear that their ability for corruption will be affected (remember lavalin case?).

Here is an action plan for KSEB.

  1. KSEB should only handle power generation and high voltage transmission. When it comes to retail sales, there should be competition. We should have multiple vendors for selling electricity. If privatisation can improve BSNL, why not KSEB?
  2. It is important to bring the salaries of KSEB employees in line with other government employees. They are the most pampered lot.
  3. Fire all incompetent and corrupt engineers who are responsible for the rotten state of KSEB. The problem is that the engineers who can’t find any jobs in private sector ends up in KSEB. So you can imagine how good these people are.
  4. Since KSEB engineers cannot even maintain hydro electric plants, hire some good engineers from Canada. According to reports, the power plant at Moolamattam is in urgent need of repair and our engineers either don’t know what to do or doesn’t care.
  5. Last but not the least, we need to urgently implement hydro electic projects including “silent valley project”. Militant enviornmentalists are holding the state hostage for over a decade now.

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19 Responses to “KSEB – Why it should be dismantled and privatised”

  1. scorpiogenius Says:

    Hello KT, welcome back..Why silent for a few weeks? :)

    Yes, its about time this rot white elephant is pulled down or blasted out into fragments. This is such a civic negligance that the Kerala State Govt is doing, inspite of the repeated suggestions and deadlines from the Centre to dismantle this parasitic structure.

    Forget houses and domestic bills, its beyond ones imagination the torture metted out to poor haplees small and medium scale industries by this Electricity Board. The top honchos of this institution need some shock treatement, and the sooner the better.

    Well written :)

  2. Kerala Tips Says:

    Hi Scorpio,

    You are correct. Small scale industries are being tortured. However, many of them have mastered the art of stealing power. These days, KSEB even operates night time squads to catch the thieves. The end result being that they get more bribe.

  3. S Says:

    >>You will have to then beg to us and pay us re-connection fees.

    Can you please use the actual words that they use. I know that what they say in effect means this, but paraphrasing it makes your post appear less serious than it is.

  4. Gopal Says:

    Bastard you are. I dunno who is paying you to write this crap. Is it people like Reliance or bigger ones like the bust-up Enron. Look at what privatisation has done to power sector and the poor consumer in maharashtra. The lucrative mumbai sector was sold off to Reliance. What does that implicate. Mumbai consumers get super service now. The power supply never shuts. Which didn’t earlier before Reliance too. The only difference now is that the consumers get their power bill on top quality paper with color printouts graphs and the rest. The problem now is that rest of Maharashtra is now power-blind. Not blind with power but blind without power. Since MSEB has only Bhandup and Pune running profitably, Pune faces six hour official powercut while rest of maharashtra 14 hour official powercut. Why, is it because rural Maharashtra has lower consumption and higher transmission costs. Or is it because MSEB has become weak to sustain rest of maharashtra as the big bull which is mumbai was sold off to Reliance. And then will Reliance take over the profit less rest of Maharashtra. The answer is no. In all this melee one forgets that the constitution of india states that gory accumulation of health in a single hand should be avoided. Hey, Why don’t you check the skyscraper of a house with two helipads on top of that of Mukesh Ambani to check if he has ever violated the constitution. Or his father. Or his brother. Jo ho so ho. Don’t blame K.S.E.B. Thank God for KSEB rural kerala has just a half hour powercut.

  5. Kerala Tips Says:

    @Gopal,

    Thanks for the compliment.

    You get it completely wrong. I am not fan of privatisation. However KSEB and KSRTC are two firms which should either be privatized or there should be competition.

    Take the case of SBI or BSNL. I find both of them with acceptable performance and there is no need to privatise them. But the reason why they are good is because there is “COMPETITION”! The same should happen with KSEB, KSRTC etc.

    Are you living in Kerala? I don’t know a single sane person who is living in Kerala who will support what KSEB is doing (apart from KSEB union leaders).

  6. Gopal Sea Says:

    Please don’t try to hit me below the belt by saying whether I live in Kerala or not. And i’m insane and a psychopath, I’ve told that earlier…

  7. DEEPTHI Says:

    KSEB should be privatised

  8. murali Says:

    If KSEB should be maintained in Govt Sector. Electricity ,water & fuel are basic commodities for life apart from Food ,cloth & medicine. If it is privatised people will loose control over it and Electricity will costly thing wich common man can not afford. To mainatin rural electrification also effectively we should maintain it in Govt Sector. KSEB officers are competent to any international employee standards. Many of them work in Gulf region effectively competting any other National Eenginees.

  9. muraliks Says:

    KSEB SHOULD BE PRIVATISED!!!!!!!!!!!

  10. ji Says:

    Privatising KSEB is like selling your house, all belongings and living in lodges or street. Be aware. DONT TELL SIMPLY “SHOULD BE PRIVATISED “. DONT FOOL yoursself.

  11. S Says:

    Hi muraliks ! Are u a doll repeating “KSEB SHOULD BE PRIVATISED!!!!!!!!!!!” Who is winding key in your back! How much money you received for this —— work?

  12. RK Says:

    While the opposition to power sector privatisation in India has focused on the Enron project and to some extent now on the Cogentrix project in Karnataka, the immensity of the Rs. 8,640-crore World Bank-sponsored privatisation exercise under way in Orissa goes virtually unnoticed.

    Due to the secrecy surrounding the operations, and the relative absence of media attention, the World Bank-sponsored overhaul of Orissa’s power sector has been proceeding unobtrusively and with no hindrance.

    In a matter of five years, Orrisa’s power sector would have been comprehensively privatised and will, if the World Bank has its way, serve as a model for other states to follow.

    In a State where only part of population has access to electricity either due to non availability or non-affordability, the immediate and palpable impact of the restructuring exercise, by the Bank’s own admission, is going to be a steep increase in tariff.

    Already power tariff in the State has been hiked thrice in the past three years and will be increased by 15 per cent each year up to 1998. The structural improvements prescribed include elimination of cross-subsidies for agricultural and domestic consumers and raising of rates to lull-cost recovery levels. The World Bank loan is, in fact, contingent upon this increase.

    Why has Orissa been chosen for this ‘experiment’? The reasons have been stated unambiguously in the World Bank’s Stall Appraisal Report (SAP) dated May 4, 1995, still in draft form.

    “It is worth noting that it is states with the weakest SEBs in India that have shown the highest degree of willingness to seriously examine new and, in the Indian context, radical options for their power sectors, “the draft SAR states.

    That the same document laments the reluctance of relatively stronger SEBs like those in Maharashtra and Andhra Pradesh to take up wholesale restructuring of their power sectors, indicates that it has been relatively easier for World Bank to push through its agenda in Orissa precisely because of the weakness of its SEB.

    Successful restructuring of the Orissa power sector is proposed to be followed up with similar operations in Bihar, Haryana, Rajasthan and Uttar Pradesh where the Bank is supporting the development of a new power policy. Preliminary activities relating to evolving private power policy in these States are being financed by two Japan PHRD grants and the Technical Assistance Project for Private Power Development.

    It is noteworthy that this restructuring process initiated in Orissa by the Janata Dal Government in 1993, has been fully endorsed by the new Congress (1) Government that came to power in the recent elections. This is in sharp contrast to the tatter’s decision to review the Power Purchase Agreement signed by the Janata Dal Government for the Rs. 2,417-crore, 500-MW Ib Valley units III and IV with AES Transpower of the US.

    It all started in January 1993 when the Orissa Government first informed the World Bank of its willingness to consider power sector reforms. This was followed by a detailed report envisaging separation of the power sector from direct government control in November 1993 outlined in a letter to the World Bank by the then Chief Minister of Orissa.

  13. balakrishnanpotty Says:

    look atUS for the private mess. recently i met an american cuople asked about the situation there .they are going to settle in australia asked why how to live without job is the asnwer see a developed country like US is nationalising junk banks no shelter due to sub prime crisis no food not sure of future people are sleeping in thier cars parked in parks but only from 7pm to 7 am for 1US$how long they tolerate so exodus
    all the privatisation proponents open thier eyes see what is happening
    power is basic ingradient for life never leave to profit mongers
    corruption ineffiency and all the vices to be tackled seperatively
    private sector accumulated mamoth capital since independence
    sans embarked 1.3 trillion by the rich in tax evaders haven swiss banks
    remember the amount eguals japans trade surpluss
    they are welcome to invest in power sector but with srict vigilance and control profit profit profit for whom never for the masses
    profit for one is loss for another and is the worst virus deadlier than HIV

  14. Sunil Says:

    Hi!!
    It’s really sorrowful to note that any private firm will give better service. But at what cost? How much could an ordinary indian be able to pay for electricity? The Electricity Act says that tariff should be fixed for getting the firms 16% profit. If 16% profit could be ensured for EB’s every thing would have been different. Think what facilities we are offering to EB workers. We should have sufficient production of cheap electricity – wind or hydral and then go for better performance. Without having sufficient electricity from where we could expect bettter service. Privatisation will add to the cost the profit the private firms too to get. Will it be good or bad?

  15. Rr Says:

    How much you are spending for petrol & Gas? Privatisation is there too. How much you are spending for Electrcity?Think———-. What is the goal behind ACT 2003 .Is it for privatisation? Think—–. Any body is making people fools?

  16. kovalan Says:

    dear frestrated,
    frestration can be leleased in many ways. Yours is one of the cheapest.I left a job with salary rs.35000/- from a limited company and joined with KSEB for mearly Rs.15000/-. I feel this salary is nothing while considering the risk of the job. First you may try to get a job of a peon in KSEB, then you feel what i said.

  17. sk Says:

    true kovalan.with the kind of regulations on it’s working, the engineers are doing their best.and tell me other guys, wouldn’t you people make a large hue and cry when the tarriffs will be increased, notwithstanding the fact that the tarrif’s in other states are much higher.with the kind of subsidised power that kerala people are enjoying, the service can only be expected t be this much.
    I think, the kseb shouls d be privatised so that people like others will repent how much they hatd KSEB.

  18. ILoveKerala Says:

    Imagine how much loss the KSEB is making to our state. Our —– ministers talk as if they have brought the money from their home. WHY DEBT OF KSEB TO SUBSIDISED!!! IT IS HARD WORKING PEOPLE’s HARD EARNED MONEY. IT IS NOT TO PUMP INTO INEFFICIENT WHITE ELEPHANTS LIKE KSEB.
    Kerala is where electricity can be generated at 15 PAISA!!!!!HOW MUCH YOU ARE PAYING!!!! HOW MUCH LOSS IT GIVES TO STATE….

    COUNT THAT MONEY ALSO… MAY BE IN KERALA YOU ARE PAYING Rs.10 per Unit including the LOSS.. MAY THE HIGHEST IN THE WORLD!!

  19. sunilkumar Says:

    The cheapest electricity charges are paid by Malayalees. Those who support privitisation is in the fools heaven. The cost of the plant, substation transmission lines and and even post will be reflected as mere digits.

    And kerala will have a good profitable market for all privet company. But the electricity, whater and transport system should be maintained in public sector, as it was considered as service sector. Regarding the capability of engineers YOU try to get in KSEB, then you will understand.

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