Punjab State Electricity Board unbundled, two companies formed

Punjab Newsline Network
Thursday, 15 April 2010
By Satinder Bains
Subsidy to agriculture sector to continue
CHANDIGARH: Punjab cabinet on Thursday approved the unbundling of Punjab State Electricity Board (PSEB) splitting it into two companies as part of reforms in compliance of Central Electricity Act 2003.
Over 65,000 employees of PSEB are on two days strike against "privatisation" of power board. The government is still continuing talks with agitating employees.
The cabinet meeting chaired by Chief Minister Parkash Singh Badal noted that restructuring of PSEB would be in the benefit of both consumers and employees.
S.C.Aggarwal Chief Secretary told media persons that the restructuring of PSEB would now result into two separate companies, Punjab State Power Corporation Ltd. (Powercom) to manage generation and distribution and another Punjab State Transmission Corporation Ltd. (Transco) to manage transmission functions. Both these companies would be fully owned and managed by the State government.
He said that Transco would have the strength of 3500 employees and Powercom having the rest of the employees around 65000. All emolyees would be transferred to Powercom and they would be sent on deputation to the other company. A notification in this regard is expected on April 17.
Chief Secretary said that all subsidies including for the agriculture sector and SC/BC's would continue as such. The Chief Secretary further said that there would be no change in the service conditions of the employees as they would continue to get the existing benefits including; Pension, Gratuity, Leave Encashment, Dearness Allowance and Annual Increment etc., besides there would also be no change in the benefits to the retired employees of the PSEB. He also assured that power tariff would not be increased.
Chief secretary said that the total worth of PSEB has been evaluated at R.30,000 crores and final valuation would be available after six months. All the assets of PSEB would be shifted to Powercom. An external liability of loan of Rs.14,000 crores would also be shifted to the new company.
Aggarwal said that cabinet has decided to appoint Chairman cum Managing Director for each company from among the technocrats. He said that Powercom shall have six directors beside CMD. The Directors are for Generation, Distribution, Finance, Human Rights, Commercial and Administration. The Transcom shall have two full time directors of Technical and Finance and commercial beside CMD. He said that while CMD can be from outside, all directors would be selected from among the PSEB technocrats.
Aggarwal also said that the age limit for CMD and Directors at the time of entry shall be 60 years and maximum limit for all incumbents shall be 62 years. The posts of Directors would be advertised in the newspapers, Chief secretary said.
With this decision, the present Chairman of the Board H.S.Brar GS Sra Member Generation and SC Sabharwal member Transmission who crossed the age of 60 would stand relieved once the notification for new companies is issued.
Chief Secretary said that Chief Minister would constitute a adhoc management committee for the transistion period till the appointment of new directors of companies.

Punjab to promulgate ordinance to punish those damaging public, private property

Punjab Newsline Network
Thursday, 15 April 2010By Satinder Bains
5 to 7 years non-bailable jail term for offenders
CHANDIGARH: The Punjab Council of Ministers has approved the draft of The Punjab Prevention of Damage to Public and Private Property Ordinance-2010 to ensure the safety of Public/Private property and to punish the rowdy elements damaging these properties during agitations besides recovering the loss caused to the property from the culprits.

Punjab govt forms six member management committee to run affairs of PSEB

Punjab Newsline Network
Thursday, 15 April 2010
By Gagandeep Ahuja
Outgoing chairman H.S.Brar did not get any place
PATIALA: Annurag Agarwal, the former member of finance of PSEB ( which was unbundled into two companies) Thursday late evening assumed the charge is among the six others who assumed charge of management committee of the board to oversee board functioning during transition period.
Consequent upon its decision to unbundle PSEB and taking into consideration the need of an interim arrangement for making day-to-day operations of the Transferee companies namely Transco and Powercom constituted vide section 131 of the Electricity Act 2003, a managing committee has been formed with immediate effect.
Other members in the committee who have also assumed the charge were Er.K.D.Chaudhry, former Member Distribution of PSEB, Er.G.S.Chabbra, Chief Engineer/O&M, Guru Hargobind Thermal Plant, Lehra Mohabat, Er.V.K.Gupta, Chief Engineer/SO&C Gurbachan Singh Bachi, former Administrative Member of PSEB and M.R Aggarwal, IAS, former Secretary, PSEB. The tenure of committee shall not be more than 6 weeks unless this period is extended by the State Government.
Punjab Government has not given any place to HS Brar, the former chairman of PSEB and member generation Gurmail Singh Sra.
Earlier in the day Punjab Government has approved the unbundling of PSEB in its Cabinet meeting held today. Two successor companies namely Punjab State Power Corporation Limited and Punjab State Transmission Corporation Limited have been formed with their headquarters at Patiala.
The affairs of both the Companies would initially be looked after by S.C.Agarwal, Chief Secretary, Punjab, Arun Goel, IAS, Principal Secretary, Irrigation & Power and Anurag Agarwal, IAS, MD/PSIDC.
Subscribers to the Memorandum and Articles of Association of the two companies as approved by cabinet would be S.C.Agarwal, IAS, Chief Secretary, Punjab, Arun Goel, IAS, Principal Secretary, Irrigation & Power and Anurag Agarwal, IAS, MD/PSIDC, Anirudh Tiwari, IAS, Secretary Expenditure, V.K.Singh, IAS MD/Milkfed, R.K.Verma, IAS, MD/Pb. Information Communication & Technology Corporation Limited and Sh.G.K.Singh, IAS, Director, Colonization and Addl.Secretary, Higher Education. Anurag Agarwal, IAS, MD/PSIDC have been nominated as the Applicant Director.
Power supply remains normal in Punjab during PSEB strike

Punjab Newsline Network
Thursday, 15 April 2010
CHANDIGARH: The strike by over 65,000 employees of the Punjab State Electricity Board (PSEB) began from Thursday midnight remained peaceful. The state government claimed the power supply remained normal throughout the state.
Apprehending trouble heavy deployment of police and paramilitary personnel was done. In the meantime state cabinet has approved unbundling of PSEB, the main reason behind the strike.
The administration also imposed orders prohibiting people from gathering in groups and carrying weapons in various parts of the state, including in and around PSEB units.
A senior Punjab police official said: "We have made sufficient security arrangements all across the state to avoid any kind of untoward incident. We are keeping an eye on antisocial elements and nobody will be allowed to indulge in sabotage and arson."
Unions had also gone on a sudden strike March 30 to oppose the privatisation move and seek redressal of their demands for workers' welfare.
Many farmer organisations are also supporting the PSEB in the strike. The Bharatiya Kisan Union (Ekta-Ugrahan group) has called for a road blockade in Malwa region Friday.
Although the striking employees assured that they would not disrupt power supply, they also maintained that their services would not be available under any circumstances during the protest.
The new strike call was given after repeated rounds of talks between the state government and the unions failed to work out a solution.
"The PSEB has made arrangements to ensure smooth power supply during these two days (Thursday and Friday). Protesting employees will not be allowed to disrupt the functions of our units," PSEB chairperson H.S. Brar told reporters here Thursday.
Sources in the PSEB said the state government also alerted the Indian army and its help can be sought in case of emergency.
The Punjab police Wednesday brought out flag marches in various towns to instil confidence among the people.
The PSEB asked hospitals, railway authorities and other essential services across the state to make alternate arrangements in view of the strike.
The PSEB is suffering cumulative losses of hundreds of crores of rupees annually and is unable to meet the rising demand for electricity in the state.