A delegation of PSEB Engineers’ Association met Chief Minister, Punjab and discussed various issues concerning power sector. It was brought to the notice of CM/Punjab that energy shortage during 2006-07 was 10.6% and with growth of energy consumption @ 8% it is necessary to add minimum 700 MW annually to tackle load growth. About 7400 MW capacity addition is required to fully meet the power demand in the next 5 years. However the capacity addition in next five years may not increase 2666 MW. Additional 1200 MW upto year 2012 can be generated if execution of Talwandi Sabo & Nabha Thermal projects are taken up immediately and atleast one plant is taken up departmentally. Association demanded that Shahpur kandi project be put under the overall control of PSEB

Regarding setting up of NUCLEAR POWER plant, Association proposed that one alternative is to enter in to a joint Venture with NPCIL for 2X700 MW RAPS units 7 and 8 being set up in Rajasthan. In addition 2X1000 MW nuclear power plant in Punjab can be set up to augment generation capacity. Linkage of gas for Doraha plant of 1000 MW may be finalized with Govt. of India and project can be completed in 24 months. Various other capacity addition proposals were also given by the Association.
For funding of new projects, Association proposed that Rs 3400 Cr. Electricity Duty which is likely to be collected by government over next 5 years be earmarked for power projects. In addition Development Charges on food grains (5%) to raise 1000 Cr/Yr, for power projects can be levied.
Association expressed deep concern on the deteriorating financial health of the Board with revenue gap increased from Rs. 194 Cr. (2005-06) to Rs.2562 Cr. (2006-07). Association warned that PSEB is fast sinking into accelerated bankruptcy. It was suggested that PSEB should immediately file tariff petition and be allowed to project correct loss/gap in ARR before PSERC for 07-08. Advance cash subsidy be paid by GOP in lieu of free power to agriculture as per Sec 65 of Electricity Act 2003
Association demanded that 3 Technical Members out of which one technical member (Member/Projects) should be incharge of all new generation/ transmission projects and a Member/HRD in place of Administrative Member be appointed.
The FAILURE of the state government and the Board to raise central funds against various schemes was also highlighted. Punjab has so far failed to raise grant available under RGGVY, a centrally sponsored scheme for strengthening distribution network in rural area and free electrification of BPL houses. As against this, Uttar Pradesh has been given Rs.1930 Cr, Bihar Rs. 553 Cr., Uttranchal Rs. 147 Cr. Etc. Punjab also failed to get APDRP incentive grant of Rs. 251.94 Cr. released from central government and Rs.155 Cr. pertaining to year 2003-04 are still pending while all other States received incentives for even years 2004-05 and 2005-06.
On the issue of distribution reforms, Association suggested that curbing theft of energy be the first priority for which special courts be set up as per Electricity Act 2003 and demanded that energy audit at every level be made mandatory. The success of HVDS and installation of Pillar boxes were also highlighted. Introduction of IT Plan in a fixed time frame to bring transparency and efficiency in the working of the Board was also demanded by the Association.
On the issue of unbundling, Association demanded that vertical integration is functional requirement of power utility and in the shortage conditions coordination of generation transmission and distribution can be optimized and economy achieved only with integrated utility. It was demanded that Punjab Govt. should seek further extension from Govt. of India to retain PSEB in present integrated form.

(Er. R. S. Sarao)
General Secretary