10-fold increase in value of MSEDC assets

Kolkata: The market value of the assets of Maharashtra State Electricity Distribution Company (MSEDC), as per a revaluation exercise carried out recently by Srei Capital Markets Ltd, has registered a 10-fold increase to over Rs 4,300 crore.

The sharp increase in value is attributed to the land under the jurisdiction of the company. In terms of the present day market prices, the value has climbed to Rs 120 crore, up from Rs 44 crore. Valuation of the existing building and civil works is also said to have increased by nearly 11 times to over Rs 300 crore.

Srei Capital was mandated to carry out the exercise by the Maharashtra Government in the aftermath of the latter's decision to unbundle the erstwhile Maharashtra State Electricity Board (MSEB) and unlock its market value. MSEB, on June 5, 2005, was split into four separate entities, namely MSEB Holding Co Ltd, Maharashtra Power Generation , Maharashtra State Transmission Co Ltd, and Maharashtra State Electricity Distribution Co Ltd (MSEDCL).

The full valuation report, expected to be made public shortly, is likely to form the basis of the subsequent plans of the State Government to overhaul the operations of the new entities.

MSEDCL now engaged in line and distribution including low transmission network, land, building and civil works, is said to have witnessed a manifold increase in valuation. The entire assets of the company, s valued by Srei Capital, has been put at Rs 2,860 crore, some 10 times the value in the books.

MSDC's distribution network is placed at 6.86 lakh Km.