Saving PSEB through Reforms: (Exclusive for Zee News).

It is possible to revive PSEB through following steps:

Technical Reforms: (Short Term): The CFLs and Electronic Chokes with Fluorescent tubes be got installed at the premises of all 60 Lac plus consumers and use of incandescent lamps may be banned through an ordinance by Punjab Govt.. This step shall save 1500 MU worth Rs 600 CR annually and reduce the peak by 800 MW.

The partial HVDS and Low Maintenance project executed on four feeders of Patiala Circle may be extended to all feeders of Punjab. In addition all the distribution transformers may be maintained, joints tightened and the earthing pits of the transformers be treated with thermal plant fly ash (25% ash 75% soil) This step will save 1000 MUs worth Rs 400 CR and reduced the peak by 700 MW.

Thus both of these steps shall save 2500 MUs worth Rs 1000 CR annually. The cuts imposed in Punjab are equally to about 4500 MUs and which can be brought down to less than 50% with the implementation of these two technical reforms by 31-5-2009.

Technical Reforms (Long Term) 9 Lac tubewell pumps and motors need to be replaced with efficient pumps and motors at an investment of Rs 1500 CR spread over a period of 3-5 years. This will save 1300 MUs worth Rs 520 CR annually thereby recovering the cost of project within 3 years.

The HVDS project being under execution in Punjab by installing 1 transformer on each tubewell shall cost Rs 4700 CR and save 2500 MUs worth Rs 1000 CR annually. This project shall be complete by 2011-12 and its cost will be recovered within a period of 5 years.

Thus the above technical reforms (short and long term) shall save 6300 MUs worth Rs 2520 CR annually wiping out the Rs 2000 CR annual loss of PSEB and turn it into a profit making organization.

Transparency Reforms: The IT plan of PSEB pending for the last 13 years should be implemented in a way that it is solution based and improves public convenience on the pattern of Reliance Energy Mumbai and NDPL Delhi by providing online information to the public and online meter reading and bill payment and fault attendance facilities.

The external audit of power on each feeder need to be introduced immediately on the pattern of financial audit of Board. This will fix responsibility on the individuals for the units received and sold.

Managerial Reforms: Each officer should spend minimum 50% time on nonpublic dealing post before becoming eligible for next promotion. The Technical and managerial training laid down in PSEB Training Policy be ensured to be implemented and linked with the grant of promotion / pay scales.

Quality circle- 5S-Six Sigma programme be implemented across PSEB on the pattern of International Organisations and Reliance Energy Mumbai / NDPL Delhi.

There is no need to unbundle PSEB. The results can be better achieved through internal unbundling. The Chairman PSEB should be placed in the Cabinet Rank and the Members heading Generation, Transmission and Distribution be made autonomous in their functioning and this autonomy should flow down to the level of sub divisional officers and junior engineers by delegating more powers and responsibility simultaneously. The unbundling process was introduced in India on the pattern of the western countries and has largely failed except in Andhra Pradesh where size of one Distribution Company as big as that of PSEB. Besides, the over privatization policy of Western Countries has failed miserably and the present economic melt down has emerged out of these policies. The mid way path of public sector and partial privatization is best suited for a large Country like India and the western countries shall not only adopt this policy but also start bundling their power sector organizations in near future. Reliance Energy Mumbai is a bundled power sector organization having Generation, Transmission and Distribution bundled together and is one of the best performing utilities of the World. Similarly, the Electricity Boards in India should be run under the old Electricity Act 1948 while ensuring a professional and autonomous management and repealing the Electricity Act 2003.

Er. Virinder Singh

Ex-Chief Electrical Inspector to Punjab Govt.

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Er.-in- Chief / PSEB (Retd.)