No move to carve out power generation utility, says Govt
Umesh Dewan
Tribune News Service

Patiala, May 14
The state government has decided not to carve the third power utility (generation company) from the Power Corporation. Only verbal talks at the government-level were on regarding the proposal for the third power utility, but has been confirmed by authorities that there is no possibility of creating a new generation company.

Aabout two months ago, The Tribune had reported that the state government was contemplating to carve out a third power utility and subsequently, technocrats as well as employees of the Power Corporation raised objections to it. About a month’s back, the PSEB Engineers' Association had held deliberations with the Chief Minister on the matter and apprised him that creation of another power utility would be detrimental for the state power sector.

There had been talks at the government-level regarding the proposed power generation company and officers of the generation department of the Power Corporation had also accepted the same preferring anonymity.

Secretary, Power, Anirudh Tiwari, said, "There was no move to carve out a separate power generation company."

PSEB Engineers' Association president and general secretary HS Bedi and Bhupinder Singh, respectively said, "During our interaction with the CM recently, we discussed the matter at length and made him aware about the adverse repercussions in case a separate generation company is carved out. It is good that the government has officially made it clear that the existing two power utilities will continue as per the present arrangement."

It is pertinent to mention that as per officials of the two power utilities - Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL), "Had there been a separate generation company, it would have to completely depend upon the PSPCL’s distribution wing for getting their power generation bills cleared. Since the distribution wing is already passing through a severe financial crunch, it would have lead to serious financial crisis for the new company."