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Home News Power Sector News PSEB will be unbundled into 2 companies - Punjab seeks extension

PSEB will be unbundled into 2 companies - Punjab seeks extension

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PSEBPunjab government is likely to get its thirteenth extension of three months to complete the unbundling of Punjab State Electricity Board. According to sources the state government has finally made up its mind to unbundle the PSEB and plan to register new power companies in coming months. According to sources the PSEB may be split in two companies. Generation and Distribution may come under one company and transmission may go to second company. Various associations and unions who are opposed to unbundling of PSEB are seeking conversion of PSEB into one single company on Kerala pattern.

It may be mentioned that Planning Commission after its review of power sector has asked the Government of India to expedite the unbundling of state electricity board to complete the reform process in power sector. Kerala has retained the KSE board in to a single Government owned company. Tamilnadu has unbundled the board in to three different companies, one each for generation & distribution, Transmission , holding company.
PSEB Engineers Association (PSEBEA) and All India Power Engineers Federation (AIPEF) had already supported the Kerala model power sector reforms, which is people centric and against privatisation policies of centre. It is ironical to note that the pro-congress leadership of KSEB Engineers' Association (KSEBEA) an affiliate of All India Power Engineers' Federation (AIPEF) in Kerala had  decided to move along with INTUC lead solidarity forum to go against Kerala model due to political reasons.

12th extension of two months expires on February 15. It may be mentioned that Punjab government has  already started the process of withdrawing free power to agriculture sector and reduces the quantum of free power to SC/ST and BPL families. This was the  first step towards unbundling of PSEB.

Planning Commission has asked the power utilities that free power to farmers should be metered and the state government should provide upfront subsidies for this purpose.

Source- Mynews

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