Tribune editorial

Going without power
Punjab dithers on reforms and suffers

PUNJAB has sought more time for unbundling the Punjab State Electricity Board. The Central Electricity Act 2003 requires every state to separate the functions of power generation, transmission and distribution, currently vested with a single board in several states. While transmission work is to stay with a state-funded entity, other jobs can be entrusted to private companies. The aim is to ensure regular power, competition and a choice to consumers to get power from whichever company they like. Consumers will, of course, have to pay more. Reforms hope to curb political interference in the management and fixing of tariff which has ruined the financial health of power boards.

Power reforms have become necessary as all power boards had suffered heavy losses for years, bleeding an already debilitated state exchequer. Political meddling had wrecked their management and finances. The political leadership, therefore, has as much vested interest in keeping the PSEB unchanged as some of the employees, who fear privatisation. After the expiry of the ninth extension, the Centre has asked for a road map of unbundling the board before agreeing to the state request for another extension of the deadline.

The dithering on reforms has cost the state dear. It has been denied access to Central funds. The World Bank has refused aid to Punjab due to free power to sections of the population. Lack of funds has prevented further power generation to meet the growing needs of the state. The cash-strapped Punjab government has invited private companies to set up new power plants. The response has been lukewarm. Besides, private companies execute projects at their convenience and are notorious for delays. Though politicians keep promising 24-hour power, the fact is Punjabis will have to live with prolonged power cuts during many coming summers. Power shortage has hampered industrial growth. Some units have even moved out of the state. Punjab growth, slowing down in recent years, cannot pick up without sufficient power.