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May 23, 1997

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Haryana decides not to restructure power sector

Orissa may have handed state electricity to three separate companies, for generation, distribution and transmission. Haryana, which considered the option, finally decided it won't.

Former Haryana chief minister Bhajan Lal, along with Haryana State Electricity Board Chairman B S Ojha, was among the first to go for the Orissa model. Uttar Pradesh, Andhra Pradesh and Rajasthan followed.

But Bhajan Lal's replacement, Bansi Lal, has not been able to get different political groups to come to a consensus on handing over power to corporate units. The state electricity board is also resisting the move since it will lose its monopoly.

With World Bank backing, the HSEB had conducted a feasibility study on the matter. Once the state cabinet headed by Bhajan Lal approved the plan, it was submitted to the Union power ministry which promised all support.

Uttar Pradesh too has taken time on the matter since the state was under the President's rule. It is now left up to Chief Minister Mayawati to act on the matter. A decision is expected soon, sources said. Other states are still considering the matter.

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