Powercom set to replace PSEB

The expert committee report clearly states that 8216;8216;the nature and extent of privatisation may be reviewed after an year based on performance of these companies and the prospects of their privatisation in the context of government8217;s policy on disinvestment8217;8217;. In the meantime, efforts should be initiated for privatisation of one of the distribution companies on a pilot basis, the report says.

It specifically states that the transmission entity must be necessarily independent of generating and distribution entities. This can be reviewed later when the industry is sufficiently mature to undertake full unbundling of the supply and wires businesses at the retail level.

Regarding the transmission company, the group has recommended that an independent transmission company should be set up for managing the transmission network. 8216;8216;It should not buy or sell power, it should only wheel power on payment of wheeling charges8217;8217;, the report says. For distribution, the Haldea Committee says that as markets develop, the proposed law should enable the separation of distribution and supply functions also.