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This is an archive article published on May 26, 2010

HPSEB: Unbundling,but no trifurcation

After nearly seven years of delays,the Himachal Pradesh government has ordered unbundling of the Himachal Pradesh State Electricity Board.

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After nearly seven years of delays,the Himachal Pradesh government has ordered unbundling of the Himachal Pradesh State Electricity Board HPSEB ahead of the June 15,2010 deadline set by the Centre to implement power sector reforms.

However,the HPSEB will remain a fully state government corporation,known as HPSEB Ltd,and there will not be any further restructuring and privatisation as most state governments have done with their power boards.

In a unique model,the government has directed that the Himachal Pradesh Power Transmission Corporation and Himachal Pradesh Power Corporation Limited the two existing corporations will work in close cooperation with the HPSEB Ltd.

While the HPSEB Ltd will deal with generation and distribution of power,the Himachal Pradesh Power Transmission Corporation will handle transmission of electricity. The Himachal Pradesh Power Corporation Limited already handles many power generation projects.

Principal Secretary Power Deepak Sanan confirmed the decision on unbundling. The state Cabinet will meet here on Wednesday to put its seal on the decision.

Under the Electricity Act,2003,the state governments are required to scrap and trifurcate power boards.

 

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