13th extension for power board unbundling likely
Bahadurjeet Singh
hindustantimes.com
RUPNAGAR:

The Punjab government is likely to get its 13th and last extension of three months from the Centre to complete the unbundling of Punjab State Electricity Board (PSEB). The 12th extension of two months expires on February 15.
Sources said the government has made up its mind to unbundle PSEB and plans to register new power companies in the coming months.

The Planning Commission, after a review of the power sector, had asked the Government of India to expedite unbundling of state electricity boards to complete the reform process in the power sector.

According to sources, the PSEB may be split into two companies. Generation and distribution may come under one company and transmission may go to the second company.

Various associations and unions who are opposed to unbundling of PSEB are seeking conversion of PSEB into one single company on the Kerala pattern.

The Punjab government has already started the process of withdrawing free power to the agriculture sector and reducing the quantum of free power to SC/ST and BPL families.

This is being seen as the first step towards unbundling of PSEB.

The plan panel had asked the power utilities that free power to farmers should be metered and the state government should provide upfront subsidies for this purpose.