PSEB Engineers’ Association challenge the statement of SAD general secretary S. Prem S. Chandumajra appearing in a section of the press that T&D losses in PSEB are more than 30% and unbundling of the Board was inevitable because PSEB is in red.

PSEB is in the red not due to its structure but due to populist and wrong policies of the successive state governments. PSEB earned a profit of Rs. 175 Cr. in 2003-04 and subsidy paid by the state govt. to PSEB for giving subsidized power to some sections of the consumers was just Rs. 837 Cr. Even after the announcement of free power to agriculture sector, PSEB earned a nominal profit of Rs. 13 Cr. in 2005-06 but slipped in to a loss of Rs. 1624 Cr. in 2006-07 as no tariff hike was allowed to PSEB in view of assembly elections in Feb. 2007. PSEB was not allowed to approach State Regulatory Commission for tariff revision which was to be filed by Nov. 2006. Even the present govt. did not allow PSEB to file tariff petition for 2007-08 due to local bodies elections compelling the State Regulator to take suo-motto action and allowing a nominal tariff hike of 4.9%.
The state government has now rolled back this tariff hike with the promise to pay an annual subsidy of more than Rs. 2800 Cr. to PSEB i.e Rs. 236 Cr. per month. However till date Punjab Govt. has made a payment for just three months and more than Rs. 1180 Cr. subsidy payment is pending.
PSEB has to make advance/cash payments against purchase of coal, oil, power purchase, salary etc for which the monthly bill is more than Rs. 650 Cr. The state government is neither allowing PSEB to recover additional tariff from the consumers nor paying the required subsidy compelling the Board to raise loans from the market at very high interest rates thus pushing the PSEB in to red.
Instead of addressing these real issues, the unbundling of the Board is being advocated without realizing that it will further put enormous financial burden on the state government. In case of unbundling, state government has to take over all unfunded liabilities of the Board and also support the ‘Financial Restructuring Plan’ so as to allow the new entities to start with a clean slate. PSEB has already utilized more than Rs. 1200 Cr. Provident fund of the employees for its capital works and the accumulated losses are more than Rs. 8000 Cr.
Gujarat Govt. during restructuring of its SEB has committed a total of Rs. 15352 Crore for next five years i.e. an average of Rs. 3070.4 Cr per year. Similarly U.P. assumed the past liability of more then Rs. 31300 Crore by writing off state govt. loans, interest liabilities, CPSU liabilities plus owing employees terminal benefits & GPF liabilities amounting to over Rs. 8000 Crore.
The assertion that T&D losses of PSEB are more than 30% is not only incorrect but disgusting also. Instead of appreciating the performance of a state utility, Board is being condemned to justify unbundling . The T&D loss level has been approved by the State Regulatory Commission after getting the quantum of agriculture consumption verified from Punjab Agriculture University and after the scrutiny of the data furnished by PSEB. However if the state government still has any doubt regarding loss level, they are free to get it verified from any independent agency.
The T&D losses in Haryana which was unbundled seven years back are still more than 40% whereas most of the other unbundled states have losses more than 35%. A private Reliance company (BSES Yamuna) in Delhi controlling a tiny pocket of densely populated area is having AT&C loss of over 50% and other company of the same group in Orissa i.e Southern Orissa Distribution Company even after 9 years has loss level of 45.5%. One company of Karnataka i.e GESCOM is having AT&C loss of 52.73%.
During last summers, PSEB assured almost round the clock supply to public including minimum 8 hours supply to tubewells. All the political leaders of the ruling party were taking credit for the achievement but now to justify the unbundling of the Board it is being discredited with wrong facts. PSEB Engineers’ Association invites such leaders for an open public debate on this issue.

(Er. R.S. Sarao) (Er.H.S.Bedi)
General Secretary President