ABSTRACT

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PREAMBLE
MSEB was formed on 20 June 1960 & It was the vertically integrated state-owned electric utility,
which was operating under monopolistic environment and assumed to have a monolithic structure
with the responsibility of generation, transmission and distribution of electricity in the state of
Maharashtra except greater Mumbai. MSEB was the not only largest SEB but also rank one power
distribution utility in India. It has a strong generation capacity base. MSEB has developed expertise in
project management and in commissioning projects in reasonable time and cost estimates. It was one
of the 1st SEB to achieve 100% rural electrification in India in 1989. Economic liberalization in the
early 1990’s has required industry to be competitive by inter-alia reducing costs. Hence by 1990’s
MSEB was found to be surrounded with unsustainable inefficiencies, unviable tariffs, high T&D
losses, mounting subsidies, suboptimal performance, wasteful practices and halfhearted financial
management. The predominance of social objectives has led to lack of commercial orientation in the
power sector of Maharashtra.