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SEBs deadline extended again

The Power Ministry has again extended the deadline for five states that failed to restructure and unbundle their electricity boards by Decem...

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The Power Ministry has again extended the deadline for five states that failed to restructure and unbundle their electricity boards by December 09 2005. Sources said that 11 states, including some bigger ones such as Kerala and West Bengal, where unbundling of SEBs8212;mandatory requirement under the Electricity Act8212;is a politically sensitive subject were given additional six months.

Some other states are Punjab, Tamil Nadu, Bihar, Jharkhand, Meghalaya, Madhya Pradesh and Assam. Incidentally, deadline for states like Bihar is March 2006. Sources said further that the decision to extend the was based on letters written by individual states and plans they had put in to move towards restructuring.

For instance, West Bengal informed the ministry that they had appointed consultants to work out ae strategy to restructure the board, added sources. It needs to be mentioned that though the Act requires state governments to restructure their SEBs since 2003, the Centre has extended the deadline twice already.

Only Maharashtra, which faced stiff opposition from unions, along with Gujarat were able to restructure the boards after the six month breather given in July this year.

States like TN and MP wrote to the ministry in November seeking extension of the deadline.

Though the Act makes it mandatory to restructure SEBs, it also provides clauses that allow a state government to keep extend deadlinea with mutual consent of the state and the Centre.

The Act says: 8220;State Government may by notification authorise the State Electricity Board to continue to function as the State Transmission Utility or a licencee for such further period beyond the said period of one year as may be mutually decided by the Central Government and the State Government8221;.

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