Consensus yet to emerge on model for unbundling of state electricity board

The most powerful lobby within the board — the PSEB Engineers’ Association — is demanding that the board be restructured by segregating trading from other functions and retaining the functions of generation,distribution and transmission under a single entity. This,they argue,complies with the legal provision of the Electricity Act and would help the state take the first step towards unbundling the PSEB.

However,the power department wants unbundling in the true sense of the term. Both Suresh Kumar,who was Principal Secretary,Power,till December 2009,and Arun Goel,the present Principal Secretary,Power,are learnt to have cautioned the government against any move that defeats the purpose of unbundling — infusing efficiency into the beleaguered board reeling under huge accumulated loss and debt. Segregating the function of trading would be meaningless unless Punjab has surplus power to sell it to other states. Also,no power reform process is complete until gross inefficiencies in the transmission of power are addressed. Keeping the functions intact under a single entity will not achieve what unbundling has been set out to achieve,a power department official said.

But the Punjab Engineers’ Association,which has distanced itself from the violent protests of some employee unions last year,says they would protest against unbundling if it entails forming separate companies for distribution,transmission and generation. “Distribution cannot survive without own generation. All three functions should be under a single entity. It is the poor management of the PSEB which is to blame for nearly 70 per cent of its woes. The board should be converted into a company and the management should pass on to professionals with specialisation in technical,human resources and other functions. Segregating all three functions would involve huge financial cost to clean the balance-sheet of the board,” says HS Bedi,president,Punjab Engineers Association.

“When the government is not paying even the Rs 1,200 crore power subsidy to the board,where is the money for committing to a huge restructuring. The financial crunch of the board has been created by denying it payments and not allowing it to function without interference,” he adds.

The government held discussions with employee unions last week and a meeting was also held by CM Parkash Singh Badal.