Saturday, February 25, 2012




KSEB suffers huge losses due to privatisation



By Niby Ann Mohan
Kerala State Electricity Board (KSEB) loses about Rs 30lakh a month due to privatisation of manufacturing of electric poles, according to KSEB employees.
Despite having its own seven-acre facility at Choolisery in Avanoor, KSEB has given the work to private contractors.
The Avanoor facility that has a maximum capacity to make 320 electric poles a day was inaugurated in 1976 by then Electricity Minister R Balakrishna Pillai. KSEB used to provide cement and steel to private contractors, who were using this facility 
to manufacture electric poles.
This facility could substantially meet the demands 
of KSEB in five districts between Kasargod and 
Thrissur. However, KSEB decided to shut down
 it for no reason and about 250 people lost their jobs.
As of now, KSEB buys 3,000 electric poles every
 month and this is incurring huge losses for the
 board, according to sources in KSEB.
It is reported that KSEB provides raw materials
 for the construction apart from rent and the 
manufacturing cost to private contractors.
Meanwhile, the Avanoor facility, which has a
 present market value of about Rs11cr is in a 
dilapidated state.
P Rajan, deputy engineer at KSEB, said though 
the board has been inviting tenders from contractors
 to manufacture electric poles at Avanoor facility, 
no one responded compelling KSEB to hand over 
contracts to private individuals.
Amid increasing concerns about the quality and 
safety of electric poles, it is down to the state 
electricity board to take immediate steps to 
manufacture electric poles at the Avanoor facility.

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