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A revaluation of assets has given Maharashtra State Electricity Distribution Co (MSEDCL or Maha Discom) a shot in the arm, placing it at a much better position to raise resources. The revaluation carried out by Srei Capital Markets has put the market value of MSEDCL assets at Rs 43,388.2 crore, a ten-fold rise compared with the net book value of Rs 4,112.9 crore as on June 2005.
“The state government wanted unbundling of the erstwhile Maharashtra State Electricity Board (MSEB) to be effected at market value, and a revaluation exercise was conducted,” director, MSEDCL, P Baghe told ET. “Srei has submitted the report. The valuation will now have to be adopted by the MSEDCL board, following which it will be considered by the state government,” he added.
MSEB was divided into four companies, including MSEDCL, back in June 2005. The objective of the revaluation exercise is not known at this stage. It remains to be seen if MSEDCL offloads equity to raise fresh resources.
Categories that saw valuation increase manifold at MSEDCL include line and distribution, land, building and civil works. The line and distribution segment was previously valued at Rs 2,584.8 crore. Srei has now valued the business at Rs 28,555.9 crore.
The total length of the distribution network is 6,86,062.64 km. MSEDCL’s land assets were previously valued at Rs 44.1 crore. According to Srei’s estimates, the land is worth Rs 11,886 crore, at market price. Srei has put the value of building and civil works at Rs 3,083.4 crore, compared with Rs 222.9 crore earlier.
MSEB was divided into four companies, MSEB Holding Company (MSEBHCL), Maharashtra Power Generation Company (MPGCL), Maharashtra State Transmission Company (MSTCL) and Maharashtra State Electricity Distribution Company (MSEDCL). Maharashtra is the second state after Orissa to go for accelerated power sector reforms. Orissa kicked off power sector reforms in 2002-03. Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka and West Bengal followed soon.
A revaluation of assets has given Maharashtra State Electricity Distribution Co (MSEDCL or Maha Discom) a shot in the arm, placing it at a much better position to raise resources. The revaluation carried out by Srei Capital Markets has put the market value of MSEDCL assets at Rs 43,388.2 crore, a ten-fold rise compared with the net book value of Rs 4,112.9 crore as on June 2005.
“The state government wanted unbundling of the erstwhile Maharashtra State Electricity Board (MSEB) to be effected at market value, and a revaluation exercise was conducted,” director, MSEDCL, P Baghe told ET. “Srei has submitted the report. The valuation will now have to be adopted by the MSEDCL board, following which it will be considered by the state government,” he added.
MSEB was divided into four companies, including MSEDCL, back in June 2005. The objective of the revaluation exercise is not known at this stage. It remains to be seen if MSEDCL offloads equity to raise fresh resources.
Categories that saw valuation increase manifold at MSEDCL include line and distribution, land, building and civil works. The line and distribution segment was previously valued at Rs 2,584.8 crore. Srei has now valued the business at Rs 28,555.9 crore.
The total length of the distribution network is 6,86,062.64 km. MSEDCL’s land assets were previously valued at Rs 44.1 crore. According to Srei’s estimates, the land is worth Rs 11,886 crore, at market price. Srei has put the value of building and civil works at Rs 3,083.4 crore, compared with Rs 222.9 crore earlier.
MSEB was divided into four companies, MSEB Holding Company (MSEBHCL), Maharashtra Power Generation Company (MPGCL), Maharashtra State Transmission Company (MSTCL) and Maharashtra State Electricity Distribution Company (MSEDCL). Maharashtra is the second state after Orissa to go for accelerated power sector reforms. Orissa kicked off power sector reforms in 2002-03. Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka and West Bengal followed soon.
