CHANDIGARH | Friday, June 12, 2009
HPSEB to be revamped
PC Lohumi | Shimla

In another move to circumvent the provisions of central Electricity Act providing for trifurcation of functions of State electricity Boards, the Himachal Government on Thursday agreed to issue a notification by June 15 under Section 131(1) of the Act for vesting of functions, priorities, interest, rights, obligations and liabilities of HPSEB in the State Government for re-vesting the same in another Government corporate entity/entities. The decision was taken at meeting of Joint Front of Electricity Board Employees Unions with Chief Secretary Asha Swaroop during which the alternative model for restructuring of Board, prepared by the front was also discussed.

It was further agreed at the meeting that all actions under Section 131(2) of the Act would be completed at the earliest as the final extension granted to the Government for unbundling the Board would expire on June 15 and it would cease to a legal entity after that date. There was consensus at the meeting that the HPSEB should be reorganised in the best possible manner within the provisions of the Electricity Act, 2003. The convener of the Joint Front in his presentation on alternate model said that the HPSEB should be reorganised into one company, which should handle all the three activities — generation, transmission and distribution.

However, the trading cannot, as per the provisions of the Act, be undertaken by it. It was brought to the notice of the Members of the Joint Front that a communication had been received by the Government from the Centre clarifying that the transmission and distribution should be separate and the consent given by the GoI for continuation of HPSEB as STU and a Licensee under the Act would expire on June 15 next.