Patna: Bihar State Electricity Board (BSEB) would be divided into five different companies to carry out reforms in the power sector in the state as per the Central Electricity Act, 2003.

The proposal to reconstitute BSEB by dividing it into five different companies had already been sent to the state government and the cabinet was likely to give its nod shortly, principal secretary to the state energy department Ajay Nayak said on Thursday.

He allayed fears of engineers and other BSEB employees assuring them that terms and conditions of their service would not be altered after the restructuring.

The decision of forming five different companies was taken at a board meeting of BSEB.

While two companies would be responsible for distribution in the north and south zones of the state, one company each would be responsible for generation and transmission, while the fifth would be responsible for production.

Nayak said additional 10,000 employees would be required in the event of division of the BSEB.

Chief Minister Nitish Kumar has said that there was an urgent need for strengthening the BSEB board.