Federation of Indian Chambers of Commerce and Industry (Ficci) has expressed concern over dropping of the provision for mandatory privatisation of State Electricity Boards (SEBs) in the draft electricity Bill, saying it may create doubts in the minds of investors.

"The fourth draft of the Electricity Bill 2000 has dropped the mandatory privatisation of SEBs. This may create doubts in the minds of investors about the real intention of the government in reforming the SEBs," said Ficci.

The Bill is expected to bring about transparency, efficiency and accountability into the system. The main thrust of the Bill was towards reforming the ailing SEBs which had become a drain on theexchequer due to over-staffing and provision of subsidised power to the agriculture sector, it said.

Stating that the Bill has approached the reform process in a proactive manner, it said transparency, efficiency and accountability had to be brought into the system. While the Bill seeks to strengthen the hands of the regulator and gives more power to set tariffs and arbitrate on disputes between players in the power sector, it should break the existing monopolistic structure in the transmission sector by creating a power poll, Ficci said.