Punjab govt given extension for unbundling PSEB
Punjab govt has been given seventh extension up to February 29, for restructuring the Punjab State Electricity Board.
By PTI |
CHANDIGARH: The Punjab Government has been given seventh extension up to February 29, for restructuring of Punjab State Electricity Board (PSEB).
The controversy of restructuring of PSEB in three or several companies has been going on since the last 5-6 years.
Recently, the PSEB Engineers Association said it was possible to retain the board without disturbing the present set up of the PSEB to meet the legal requirements of Electricity Act 2003, by creating a new firm to "trade" power.
The Punjab Government has reappointed consultants to submit report on the restructuring of the PSEB. Earlier, the consultants had suggested separate companies for generation, transmission and three distribution, besides a holding company.
The restructuring of PSEB is a high risk, low return and irreversible process and all the stake holders must be involved in the process.
An expert committee headed by Gajendra Haldia in 2003, had suggested an investment of Rs 16,000 crore in the next five years, besides privatisation of generation and distribution sector.
The present financial burden for restructuring of PSEB would be huge keeping in view present annual subsidy of Rs 2700 crore and accumulated loss of Rs 8000 crore.
The projects expected to be commissioned during 11th plan circulated by the Planning Commission, Punjab is expected to add maximum of 1675 MW, out of which 1275 MWs has been identified through private sector.
However, experts feel that over dependence on private sector for setting up the new projects would not be in the interest of state.
The controversy of restructuring of PSEB in three or several companies has been going on since the last 5-6 years.
Recently, the PSEB Engineers Association said it was possible to retain the board without disturbing the present set up of the PSEB to meet the legal requirements of Electricity Act 2003, by creating a new firm to "trade" power.
The Punjab Government has reappointed consultants to submit report on the restructuring of the PSEB. Earlier, the consultants had suggested separate companies for generation, transmission and three distribution, besides a holding company.
The restructuring of PSEB is a high risk, low return and irreversible process and all the stake holders must be involved in the process.
An expert committee headed by Gajendra Haldia in 2003, had suggested an investment of Rs 16,000 crore in the next five years, besides privatisation of generation and distribution sector.
ADVERTISEMENT
The committee had also suggested conversion of state Government loans in to equity and taking over the liabilities related to employee's retirement benefits. The present financial burden for restructuring of PSEB would be huge keeping in view present annual subsidy of Rs 2700 crore and accumulated loss of Rs 8000 crore.
The projects expected to be commissioned during 11th plan circulated by the Planning Commission, Punjab is expected to add maximum of 1675 MW, out of which 1275 MWs has been identified through private sector.
However, experts feel that over dependence on private sector for setting up the new projects would not be in the interest of state.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
