Module 3: Institutional Structure & Unbundling of BSEB (2012)

The Bihar State Electricity Board (BSEB) was originally constituted on April 1, 1958, under Section 5 of the Electricity Supply Act, 1948, as an integrated utility handling generation, transmission, and distribution.

Unbundling into Five Functional Companies (November 2012):

To improve functional autonomy, managerial efficiency, and financial health, BSEB was unbundled in November 2012 under the Bihar State Electricity Reforms Transfer Scheme 2012 into five corporate entities:

1. Bihar State Power (Holding) Company Limited (BSPHCL): The apex holding and investment company that owns the equity shares of the other four operating subsidiaries and inherited the legacy assets, rights, and liabilities of BSEB. It handles overall policy coordination, strategic investments, and dispute resolution.
2. Bihar State Power Generation Company Limited (BSPGCL): Responsible for coordinating, operating, and expanding power generation stations inside the state, as well as procuring fuel and managing logistics.
3. Bihar State Power Transmission Company Limited (BSPTCL): Entrusted with building, expanding, and operating intra-state Extra High Voltage (EHV) transmission networks connecting grid sub-stations to generation nodes.
4. South Bihar Power Distribution Company Limited (SBPDCL): Responsible for retail supply, billing, metering, and rural/urban electrification in southern districts.
5. North Bihar Power Distribution Company Limited (NBPDCL): Responsible for retail supply, metering, billing, and distribution infrastructure in northern districts.

Both distribution companies execute Power Purchase Agreements (PPAs) and implement central schemes like DDUGJY, SAUBHAGYA, and BRGF.