The restructuring model, however, is yet to be finalised, Basak said. The board will like to engage Power Finance Corporation (PFC) for a detailed study on the issue.

MSEB has a few models for consideration. These include the one proposed by the Rajadhyakshya Committee, the Orissa model and the models chosen by other electricity boards. "Besides, there is also a proposal to convert MSEB into a holding company and set up saperate joint ventures for various activities," said Basak.

The issue had already been discussed in the organisation and there was an opinion that the option of restructuring could be explored, said Basak. "However, before engaging PFC or any other consultant for a detailed study we would like to have the government's views on the proposal," he said.

PFC has recently made a presentation to the board and has also offered financial assistance if the board proposes to undertate study on restructuring, Basak said.

This apart, PFC has also agreed to fund entire restructuring plan for which the finance company will give loan at a concessional rate, he added. PFC has a long association with MSEB and it recently increased its exposure to the MSEB while providing lease finance for one of the projects.

On the MSEB's performance, Basak said the board has been taking initiatives to improve performance in all areas, including generation, transmission, distribution and recovery of dues.

In power generation, the state's total capacity has already been augmented with the commissioning of the 740-mw Dabhol Power Plant. The board has also taken up its own capacity addition programme which includes extension of the existing power plants and renovation of undertilised plants.

In transmission sector, the board has drafted a detailed plan to upgread the power transmission system in phases.

As for distribution, MSEB has suggested privatisation of disribution network in the state. The board had decided to initiate the process by privatising the distribution system in New Mumbai. It had earlier appointed the Infrsatructure Leasing and Finance Services (IL&FS) to prepare a detailed feasibility report. However, because of the opposition form a section of employees the plans could not be implemented, said Basak. The board is still working out a solution.

MSEB has taken special initiatives to improve its bills recovery system. With the inter-department support the board had set up separate groups to work in different areas. Apart form strengthening the vigilance network MSEB also took strong actions against defaulters.

All these efforts have been acknowledged by PFC which is ready to take up the restructuring study, said Basak. With Maharashtra State Electricity Regulatory Commission in place, the board may get a favourable response from the government on the restructuring issue, he said.