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SEB losses jump on lack of reforms, says study

India's state electricity boards have run up cumulative losses of Rs 138.17 billion ($3.09 billion) till 1999-2000 (April-March) mainly due to resistance to economic reforms, an industry body said.

The Associated Chambers of Commerce and Industry said in a statement that its study of the country's 19 state electricity boards showed that their combined losses had increased by more than 200 per cent since 1992-93, despite the government introducing power sector reforms in 1991.

State electricity boards have been slow to adopt reforms, with labour unions resisting privatisation attempts.

Earlier this year, some 87,000 power sector employees in the northern state of Uttar Pradesh struck work to protest moves to privatise the state's electricity board, leaving many parts of the state in darkness for 11 days.

State governments have not helped matters for the electricity boards by subsidising power tariffs. Some states provide free power to the agricultural sector.

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