Govt to bail out PSPCL, assures CM Badal

Yogindra Mohan
Patiala

The Punjab Government is committed to improve the financial condition of the Punjab State Power Corporation Limited (PSPCL). This was announced by the Punjab Chief Minister, Parkash Singh Badal while addressing a gathering of over 1000 power engineers at the general body meeting of PSEB Engineers Association, here on Saturday.

CM said that Punjab had obtained an additional plan assistance of Rs 500 crore, out of which Rs 300 crore would be earmarked for the power sector. The government had also sanctioned a sum of Rs 200 crore for the PSPCL.

The Punjab Government was also committed to set up 1320 MW Mukerian thermal project in state and will review the decision to give Gidderbaha thermal to the National Thermal Power Corporation (NTPC), said Badal.

He lauded the efforts of the PSEB Engineers Association in making Punjab a power surplus state. He lauded the selfless efforts of the All India Power Engineers Federation Chairman Padamjit Singh to bring about improvements in the power sector in Punjab.

HS Bedi, in his presidential address, welcomed the decision of the State Government to give top priority to capacity addition so that Punjab may become a power surplus state. He suggested that thermal projects should be executed not only through private companies selected through competitive bidding but should be constructed under state sector and through joint ventures.

The financial situation of the PSPCL is alarming with cumulative commercial loss of more than Rs 11,000 Cr. and subsidy burden likely to touch Rs 5,500 crore. The working capital loan which was just Rs 600 crore in 2002-03 crossed Rs 10,000 crore mark ending 2010-11. A bankrupt PSPCL will lead to the destruction of the economy of the state.

For optimum utilization of the generating capacity, integrated operation of distribution and generation functions was a must so that generation wing operates its plants according to the needs of the distribution wing.

Bedi warned that it would be a step backward if generation is separated from distribution. The Association was opposed to the separation of generation from distribution business and he requested the Chief Minister to shelve such proposal in case it is under the consideration of the government.

The pay structure of PSEB engineers has been historically higher than their counter parts in the state and the central government. The reason for better pay scales was working conditions in power sector are much more arduous and stringent.

Bedi demanded the pay scales of newly recruited engineers be made higher than government scales.