West Bengal State Electricity Distribution Co (WBSEDC) and West Bengal State Electricity Transmission Co (WBSETC) — the two entities created after bifurcation of WBSEB — have appointed PricewaterhouseCoopers (PwC) to work out new accounting standards which will enable them to raise funds from the market shortly.
Talking to ET, MK De, chairman of WBSEDC, said: “We have just appointed PwC to work out fresh accounting standards for both entities. We want to embrace accounting standards which are at par with global accounting norms. This will help strengthen our balance sheet and make it easier to raise funds from the market in future.” Incidentally, Mr De is also the managing director of WBSETC.
PwC will complete the exercise within three months. “As PwC was closely involved in restructuring the erstwhile WBSEB, the task will be easier for them. It has already kicked off the exercise,” he added.
In fact, both WBSEDC and WBSETC have decided to invest Rs 1,000 crore in 2007-08 to improve distribution, transmission and customer services. They will approach banks and multi-lateral funding agencies like Japan Bank for International Cooperation (JBIC) for this.
Once accounting standards are worked out, both WBSETC and WBSEDC will kick off an asset verification programme. “This does not mean we will go for revaluation of assets since that would impact the tariff. While calculating our tariff, we take into consideration a number of things which also include depreciation of assets. So if the assets are revalued, it is obvious that depreciation will go up, resulting in tariff increase,” Mr De said.
For this exercise, both entities will appoint a consultant. “We will float a tender inviting expressions of interest (EoIs) and then shortlist the party soon,” he added. Incidentally, the distribution company has targeted a turnover of Rs 6,500 crore for 2007-08 while the transmission company is looking at a Rs 300-350 crore turnover in the same year.
“At WBSEDC, we have decided to invest about Rs 500 crore in setting up three new sub-stations, new meters, and feeder rationalisation projects. A Rs 100 crore fund will be created for setting up a capacitor bank — a project that will help reduce technical losses in the system. Another Rs 500 crore will be invested for improving transmission network,” said Mr De.
Talking to ET, MK De, chairman of WBSEDC, said: “We have just appointed PwC to work out fresh accounting standards for both entities. We want to embrace accounting standards which are at par with global accounting norms. This will help strengthen our balance sheet and make it easier to raise funds from the market in future.” Incidentally, Mr De is also the managing director of WBSETC.
PwC will complete the exercise within three months. “As PwC was closely involved in restructuring the erstwhile WBSEB, the task will be easier for them. It has already kicked off the exercise,” he added.
In fact, both WBSEDC and WBSETC have decided to invest Rs 1,000 crore in 2007-08 to improve distribution, transmission and customer services. They will approach banks and multi-lateral funding agencies like Japan Bank for International Cooperation (JBIC) for this.
Once accounting standards are worked out, both WBSETC and WBSEDC will kick off an asset verification programme. “This does not mean we will go for revaluation of assets since that would impact the tariff. While calculating our tariff, we take into consideration a number of things which also include depreciation of assets. So if the assets are revalued, it is obvious that depreciation will go up, resulting in tariff increase,” Mr De said.
For this exercise, both entities will appoint a consultant. “We will float a tender inviting expressions of interest (EoIs) and then shortlist the party soon,” he added. Incidentally, the distribution company has targeted a turnover of Rs 6,500 crore for 2007-08 while the transmission company is looking at a Rs 300-350 crore turnover in the same year.
“At WBSEDC, we have decided to invest about Rs 500 crore in setting up three new sub-stations, new meters, and feeder rationalisation projects. A Rs 100 crore fund will be created for setting up a capacitor bank — a project that will help reduce technical losses in the system. Another Rs 500 crore will be invested for improving transmission network,” said Mr De.
