Bihar Government has approved a proposal for the division of Bihar State Electricity Board (BSEB) into five separate companies. Bihar State Electricity Company ( BSEC) will be the holding company and other four companies will be known as Bihar State Electricity Production Company, Bihar State Electric Transmission Company, South Bihar Electricity Supply Company and North Bihar Electricity Supply Company. Earlier, there was plan to divide the board into eight companies.
However; the state government will work as a guarantor and ensure that the services of BSEB employees are not affected. Service conditions of the employees will remain unchanged, said cabinet secretary Ravikant while briefing newsmen after the cabinet meeting.
In accordance with the recommendations of D R Mehta report, the state cabinet decided to give 7.5% of total tax collection of the state government to the Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). While 70% of the earmarked share will go to the PRIs, 30% will go to ULBs. This formula of sharing tax collection will remain effective up to 2014-15.