North and South: the two companies that distribute Bihar's electricity

Background

Bihar distributes electricity through two State owned companies, and the Rs 11,096.55 crore network upgrade just approved is divided between them. North Bihar Power Distribution Company Limited serves the districts north of the Ganga and takes Rs 6,066 crore of the plan, while South Bihar Power Distribution Company Limited serves the districts to the south and takes Rs 5,030.55 crore. Both are raising the money from banks against a State government guarantee rather than from the budget. The split into separate generation, transmission and distribution companies follows the pattern set by the Electricity Act, 2003, which required State electricity boards to be unbundled. Bihar's peak demand has grown from 1,802 megawatt in 2012 to 9,475 megawatt, which is the reason the low tension network is being rebuilt.