Punjab State Electricity Board unbundled, 2 companies formed
Thursday, 15 April 2010
Subsidy to agriculture sector to continue
Punjab cabinet on Thursday approved the unbundling of Punjab State Electricity Board (PSEB) splitting it into two companies as part of reforms in compliance of Central Electricity Act 2003.
Over 65,000 employees of PSEB are on two days strike against "privatisation" of power board. The government is still continuing talks with agitating employees.
The cabinet meeting chaired by Chief Minister Parkash Singh Badal noted that restructuring of PSEB would be in the benefit of both consumers and employees.
S.C.Aggarwal Chief Secretary told media persons that the restructuring of PSEB would now result into two separate companies, Punjab State Power Corporation Ltd. (Powercom) to manage generation and distribution and another Punjab State Transmission Corporation Ltd. (Transco) to manage transmission functions. Both these companies would be fully owned and managed by the State government.
He said that Transco would have the strength of 3500 employees and Powercom having the rest of the employees around 65000. All emolyees would be transferred to Powercom and they would be sent on deputation to the other company. A notification in this regard is expected on April 17.
Chief Secretary said that all subsidies including for the agriculture sector and SC/BC's would continue as such. The Chief Secretary further said that there would be no change in the service conditions of the employees as they would continue to get the existing benefits including; Pension, Gratuity, Leave Encashment, Dearness Allowance and Annual Increment etc., besides there would also be no change in the benefits to the retired employees of the PSEB. He also assured that power tariff would not be increased.
Chief secretary said that the total worth of PSEB has been evaluated at R.30,000 crores and final valuation would be available after six months. All the assets of PSEB would be shifted to Powercom. An external liability of loan of Rs.14,000 crores would also be shifted to the new company.
Aggarwal said that cabinet has decided to appoint Chairman cum Managing Director for each company from among the technocrats. He said that Powercom shall have six directors beside CMD. The Directors are for Generation, Distribution, Finance, Human Rights, Commercial and Administration. The Transcom shall have two full time directors of Technical and Finance and commercial beside CMD. He said that while CMD can be from outside, all directors would be selected from among the PSEB technocrats.
Aggarwal also said that the age limit for CMD and Directors at the time of entry shall be 60 years and maximum limit for all incumbents shall be 62 years. The posts of Directors would be advertised in the newspapers, Chief secretary said.
With this decision, the present Chairman of the Board H.S.Brar GS Sra Member Generation and SC Sabharwal member Transmission who crossed the age of 60 would stand relieved once the notification for new companies is issued.
Chief Secretary said that Chief Minister would constitute a adhoc management committee for the transistion period till the appointment of new directors of companies.