…gets three months to complete process

With the Punjab government announcing its decision to unbundle the Punjab State Electricity Board into two companies...

With the Punjab government announcing its decision to unbundle the Punjab State Electricity Board into two companies,the Centre has acceded to the states request for another three-month extension for completing the process of unbundling as per the provisions of the Central Electricity Act. This is the 14th extension granted to Punjab by the Centre.

According to sources,the Centre has now granted Punjab time up to July 15,2010,for caring out the process of unbundling of PSEB after its earlier deadline expired on Thursday. The Centres extension came after the meeting of Chief Minister Parkash Singh Badal with Union Power Minister Sushil Kumar Shinde on Tuesday,in New Delhi.

Confirming this,Director,Union Ministry of Power,Pranay Kapoor has written to Punjabs Power Secretary. In the letter,received by the Punjab officials on Thursday,it was mentioned: As per the provisions of Section 172-A of the Central Electricity Act,2003,the Centre has decided to grant another extension of three months to Punjab for unbundling its state electricity board. The Centre has also decided to agree for continuation of PSEB as a state transmission utility and a licencee till July 15,2010,to enable the state government to complete the process of unbundling. PSEB Member Transmission S C Sabharwal told The Indian Express that the extension will enable the Board to be restructured as per the provisions of the Electricity Act,into two separate entities.

Punjab had been dilly-dallying on the unbundling of PSEB,fearing backlash of its 60,000 strong workforce.

Unbundling had also proved to be unsuccessful in many other states.

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