HPSEB unbundled,now officially

Himachal Pradesh,perhaps,will be the first state that has chosen to adopt the model proposed by the board’s employees and engineers,and even retain HPSEB as a single entity to be named as HPSEB Corporation Limited,instead of leaving space for further restructuring or privatisation,as has been done by most governments.

The functions of transmission will be handled by the Himachal Pradesh Power Transmission Corporation (HPPTC),which has also been declared as a state transmission utility — a requirement of the Electricity Act 2003. The generation work will be handled by the Himachal Pradesh Power Corporation,which has been already allotted nearly a dozen power projects.

Principal Secretary (Power) Deepak Sanan said: “The Cabinet was fully satisfied with the proposals submitted. Some of the apprehensions raised about feasibility of the unbundling process were fully addressed. Interests of the domestic consumers in terms of power tariffs have been fully protected under the model adopted by Himachal Pradesh.”

Minutes after the decision,the Joint Front of the HPSEB Employees and Engineers endorsed similar views and described the Cabinet decision as “path-breaking”.

“This is a historic decision,through which the consumers will get electricity cheaper and employees’ rights will get full protection. By next fortnight,we will come out with a strategy paper so that the reforms process can finally begin,” said Sunil Grover,convener of the front.

During the Cabinet meeting,sources said,Chief Minister Prem Kumar Dhumal impressed upon the ministers that non-transfer of the HPSEB’s assets,including transmission lines and sub-stations,would not in any manner derail the reforms process. “The overall base of high-capacity lines and substations in Himachal is quite small as compared to fresh investment of Rs 4,500 crore proposed in the transmission sector. Even if a small portion of the assets is transferred,it will equalise in the transmission charges,and consumers will not be made to bear heavy burden of high transmission charges,” he said.

On the other apprehensions about “open access” to private sector power producers and a weak transmission utility,the CM refused to agree that the situation would pose problems in raising foreign fundings to implement the transmission plans.

On the staff deployment under a common cadre,the Cabinet claimed that the proposal was not much different than the one adopted by Punjab. For a year,the Himachal Power Transmission Corporation will not make any direct recruitment.

“This,in fact,will result in proper coherence and coordination between the two utilities for evacuation of power in the state transmission system for its further distribution to consumers at affordable rates,” said an HPSEB official.

Key decisions

* Separate police post for Sawra Kuddu hydel project

* Committees for private negotiations at district level for land acquisition by irrigation and public health department. DCs to head the committees

* Nod to fill 71 posts of pharmacists in the health department and 64 posts of teachers in the newly upgraded government middle schools on contract basis

* Nod to fill two posts of commandant,four posts of company commander and 10 posts of havildars in the home guards department

* Approval to revised organisational structure and staffing pattern of newly created Directorate of Energy

* Amendment in HP Social Security Pension Act 1997 to adopt New Himachal Pradesh Social Security (Pension/Allowances) Act 2010 and raise the annual income limit from Rs 6,000 to Rs 9,000 and from Rs 11,000 to Rs 15,000 for individuals and families,respectively

* Issuance of senior citizen and handicap certificates through Lok Mitra Kendras under Social Security (Facilities to Senior Citizens) Act 2002. Amendment in Himachal Pradesh Maintenance of Parents and Dependents  Act 2001

* Nod to clubbing of Homte (10.5 MW) and Wanger (24.1 MW) hydel projects in Kinnaur with an upfront premium payment at the rate of Rs 20 lakh per MW

* New guidelines for change of location/elevation of hydel projects

* Uniform extension fee at the rate of Rs 10,000 per MW from all independent power producers (IPPs)

* Partial modification in the new admission policy for post-graduate degree or diploma courses in the government medical colleges