The Cabinet on Wednesday gave in-principle approval for ‘re-vesting’ the assets and liabilities of the Kerala State Electricity Board (KSEB) into the new company - Kerala State Electricity Board Ltd - which will function under government control.
A notification will soon be issued and an MoU will be signed by the Power Secretary, for the government, and the KSEB chairman in this regard.
The assets and liabilities were vested with the State Government in 2008 as part of the restructuring process. The company was formally registered a few years later. So far, it has existed as a shell company. The KSEB had submitted a proposal for the re-vesting process which the Cabinet, in principle, has approved.
As per the proposal, the transfer scheme is to be completed by the end of November this year. The Cabinet also approved norms suggested by a committee led by the Chief Secretary which will help the KSEB meet its pension liabilities of `7,584 crore. Under this, the KSEB will form a fund from which the pension liabilities will be met every year. Pension liabilities up to March 31, 2009, will require `4520 crore. For this, the government will contribute `1,600 crore. KSEB will provide remaining `2,920 crore.