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Home News Power Sector News HPSEB trifurcation to be completed before June 15, 2010

HPSEB trifurcation to be completed before June 15, 2010

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Himachal CM DhumalForced by the Centre to meet the deadline for unbundling of the Himachal Pradesh State Electricity Board (HPSEB), Chief Minister Prem Kumar Dhumal has given green signal for reorganisation of the board and re-vesting its assets and liabilities into newly-formed companies. Dhumal had been holding back his decision on trifurcation of the board because of the intense pressures mounted by the employees’ body, which gave its own alternative model to stall the process. They had also formed a joint action committee.

The HPSEB unions, however, claims the government will have to adopt its own model for the reorganisation of the board, instead of blindly following any other states. Employee unions also pointed out that Kerala Government had reconstituted the Board into a single public sector company handling generation, Distribution and Transmission. Himachal has a power potential of 21,000 MW and is highly-efficient in distribution network, unlike any other state, the employees said.

The previous Congress government had constituted the Himachal Pradesh Power Corporation, an independent power generating company and Himachal Pradesh Power Transmission Corporation, to separate functions of power generation and Transmission.

Under the Electricity Act 2003, the state governments are required to reorganise the state electricity boards. Though last year, the government issued the notification vesting the assets and liabilities of the HPSEB to the state government, it could not take further steps to re-vest these assets into proposed companies.

Last week, Dhumal while attending a conference of the state power ministers called in Delhi by Union power minister Sushil Kumar Shinde was question for not complying with the Centre’s directions.

“I have given assurance to meet the June 15 deadline. The process is already underway to reorganise the HPSEB so that its working becomes transparent and brings in efficiency after separate entities are formed to discharge functions of generation, distribution and transmission,” he said.

Sources in the HPSEB said the failure of the board to take a decision on unbundling will deprive the agency from availing Central funds of Rs 800 crore. Dhumal admitted that after Punjab’s abrupt move of unbundling, all eyes were on Himachal. Haryana had gone through the process long ago.

Under the provisions, the state government plans to create a separate state transmission utility (STU) for handling power distribution job, which will not be part of the main functions of the erstwhile board.

Source- Indian Express

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