Another 2 month extension likely for PSEB unbundling
VINOD KUMAR GUPTA
Tuesday, 09 February 2010

CHANDIGARH: Punjab government is likely to get its thirteenth extension of two months to complete the unbundling of Punjab State Electricity Board.According to sources the state government has finally made up its mind to unbundle the PSEB and plan to register new power companies in coming months. Punjab Government has sought four months extension to complete the process of unbundling.

It may be mentioned that Planning Commission after its review of power sector has asked the Government of India to expedite the unbundling of state electricity board to complete the reform process in power sector.

Kerala has converted the board in to a single Government company. Tamilnadu has converted the board in to three different companies, one each for generation, transmission and distribution.

According to sources the PSEB may be split in two companies. Generation and Distribution may come under one company and transmission may go to second company. Various associations and unions who are opposed to unbundling of PSEB are seeking conversion of PSEB into one single company on Kerala pattern.

12th extension of two months expires on February 15. It may be mentioned that Punjab government has already started the process of withdrawing free power to agriculture sector and reduces the quantum of free power to SC/ST and BPL families. This was the first step towards unbundling of PSEB.

Planning Commission has asked the power utilities that free power to farmers should be metered and the state government should provide upfront subsidies for this purpose.

Meanwhile talks between various unions and the PSEB management has failed on this issue. The employees will be going on one day strike tomorrow