Unbundling causes crisis in board
Rakesh Lohumi
Tribune News Service

Shimla, January 10
Dithering over unbundling of the state electricity board is leading to a crisis situation where a number of upcoming hydroelectric projects will be commissioned without the required transmission system for evacuation of power.

The Central Electricity Authority has taken a serious notice of the matter and asked the state to start work on the transmission network immediately for the 100 MW Sorang,70 MW Tedong-I, 111 MW Sawra Kuddu, 65 MW Kashang -I and other projects slated for completion from 2010 and 2012.

However, the board is in no position to carry out the job as it neither has funds nor the manpower required to execute the Rs 4500 crore transmission master plan.

The union ministry of power has made it clear to the sate that it will not forward any proposal for external funding by agencies like the World Bank and the Asian Development Bank unless the board was unbundled in accordance with the Elelctrcity Act 2003.

The ministry has not taken kindly to the creation of a subsidiary of the board to look after the transmission in place of an independent state transmission utility as mandated by the Act.

The Asian Development Bank, which is providing Rs 3800 crore to the state for execution of four major hydroelectric project, has been keen to fund the transmission master plan and the state transmission corporation had sent a proposal to the Centre for clearance.

However, it was turned down as the state had not complied with the requirements of the Act as a result of which the board had ceased to be legal entity.

Further, the state transmission corporation has not been provided the required staff. Even, the staff which had to be shifted from the board had not been released. The corporation virtually exists on papers only.

The state has identified potential of 20,386 MW out of which 6314 MW have been harnesses so far.

The projects with an aggregate capacity of 5359 MW, which are scheduled to be commissioned by 2012 will not be able to evacuate power as the board has not taken up work for construction transmission line for any of the projects.

In fact, the company executing the 192 MW Allain Duhungan project which is nearing completion has been forced to construct its own transmission line because of the indifferent attitude of the board.

Other projects will face problems even if work is started immediately as it will take three to four years to construct transmission line for any project. Acquisition of land, forest clearance and other codal formalities require much time.