Engineer to head one company- PSEBEA supports PSEB unbundling
Friday, 09 April 2010
Suresh Kumar MG

The government proposes to restructure the PSEB into two companies with transmission being separated from distribution and generation, which will form the second company.
Punjab government is in the process of convening a meeting of the Cabinet on April 15 to consider a draft proposal for the unbundling of the PSEB. Meanwhile, PSEB Engineers Association had given its go-ahead for the bifurcation of the board. Sources said in order to placate engineers associations of the PSEB, the Punjab government has decided to appoint or nominate a PSEB engineer as the Managing Director of one of the proposed corporations, while the other may be headed by a senior civil servant.

According to sources, the Cabinet would be presented a proposal calling for the bifurcation of the PSEB into two separate entities to comply with the new Electricity Act, 2003. The government proposes to restructure the PSEB into two companies with transmission being separated from distribution and generation, which will form the second company.

In order to fend off fears of PSEB employees and various farmers organisations, which are apprehending that unbundling was a just a step towards privatisation, the state government has decided to adopt the Gujarat model.

According to this model, the Punjab government would have to seek prior approval of the Vidhan Sabha in case it decid- ed to sell or lease out proper- ty and assets of the two corporations to a third party.
Chief Secretary SC Aggarwal said the Cabinet was most likely to meet on April 15 and that the issue of the unbundling of the PSEB would be taken up at the meeting. Sources said in case the draft proposal was approved by the Cabinet, it would be notified immediately. The state Power Department has also prepared a draft notification so that the government is able to meet the April 15 deadline for the unbundling of the PSEB.

The government is simultaneously trying to take major unions on board. Though CM Parkash Singh Badal will hold formal talks with the unions on April 9, preliminary talks have started and employees have been assured that their service conditions will not change. Employees have also been assured of a common seniority and the government may even go for a tripartite agreement with the employees and the managements to ensure the rights of the employees are protected in the new organisations.