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Mahavitaran Share Market Listing: A historic change is going to take place in the field of electricity distribution in Maharashtra. The state cabinet has approved the proposal for economic and administrative restructuring of Mahavitaran (MSEDCL). After this decision, now Mahavitaran is preparing to enter the stock market.

Independent company will be formed for agricultural customers

Under this masterplan of Maharashtra Government, the agricultural distribution business of Mahavitaran will be demerged. This means that a completely independent company will be set up to serve agricultural customers. The main objective of this step is to separate the burden of agricultural and industrial sectors and improve management.

Valuation of properties started on war footing

To get listed in the stock market, it is mandatory to follow the strict rules of SEBI. Under this, the company has to give account of every penny of its movable and immovable assets. Mahavitaran has started the valuation of its properties spread across the state on a war footing.

Teams have been formed under the leadership of executive engineers who are doing physical verification of everything from transformers, conductors to office tables, chairs and ACs. Cross-checking is being done to maintain transparency in the data. For example, officials of one department are investigating the property of another department.

What will change with IPO?

Availability of huge funds: The investment received from the stock market will be used to build new sub-stations and modernize the infrastructure.

Freedom from debt: At present, there will be less dependence on banks for development works, which will reduce the interest burden.

Accountability and Transparency: After listing, the company will have to make its financial position public every three months, which will curb corruption.

Better Service: Due to pressure from investors, emphasis will be laid on preventing line loss and increasing efficiency, which will directly benefit consumers in the form of better voltage and less outages.

Challenges and concerns of the general public

While on one hand there is talk of modernization, on the other hand there are some risks also.

Increase in electricity rates: Stock market investors expect profits. In such a situation, the possibility of increase in electricity prices in future cannot be ruled out.

Crisis on subsidy: At present, the burden of electricity subsidy given to farmers falls on industrial customers. Private investors may oppose this cross-subsidy model.

Fear of privatization: Employee organizations have started opposing this move. He believes that this is the first step towards complete privatization.