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Home News Power Sector News Power ministry refuses to extend the deadline for HPSEB

Power ministry refuses to extend the deadline for HPSEB

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HPSEB UnbundlingCentral Power ministry on 22-12-2008 had refused to extend the deadline for carrying out unbundling of Himachal state electricity board (HPSEB) and has insisted that the state set up a transmission utility at the earliest, senior official disclosed. A high level delegation led by chief secretary Asha Swaroop and HPSEB chairman RK Jain met up with union power secretary on 22-12-2008 seeking yet another deadline extension till March 2009. But, Union power secretary had intimated the senior officials of the Himachal State Government in the meeting that no extension had been granted to any state board in the country and it would not be possible to make an exception for Himachal.

However, chief secretary Asha Swaroop told the media, “We have put forward our case saying that the state government intends to comply with the Electricity Act 2003 but need time till March 2009 to get our act together.”

“Officials of the central power ministry insisted that the state carry out the mandatory reforms and set up a transmission utility at the earliest so as to avail a transmission licensee that presently stands expired since July, 2008, “said the official.

Chief minister Prem Kumar Dhumal last week had stated that the government was trying to sort out the issue of unbundling of HPSEB to the satisfaction of employees and the governing laws. “Experiences in unbundling show that some state electricity boards have improved, where as some have gone worse,” Dhumal had said on the occasion.

It may be mentioned that HPSEB is in a dilemma after its transmission licensee stands expired, putting to risk all trading being done in the intervening period.

Unbundling of the board is being resisted by employee unions and the government has failed to carry out dismantling of the utility into generation, transmission and distribution companies, despite having secured many extension periods to do so.

Courtesy - My Himachal News

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