Unions want to be consulted on TNEB unbundling process
17 Jun 2009, TNN

CHENNAI: The move to unbundle the Tamil Nadu Electricity Board (TNEB) may not evoke any vociferous opposition from the employees' unions, as they
understand that it is an inevitable process and a statutory obligation. However, union leaders say that they will be demanding a consultative process involving the employees so that their interests are protected when the board is restructured and new companies are formed for transmission, distribution and generation.

"We have asked for a tripartite settlement of issues involved before implementation of the unbundling plan," K Vijayan, treasurer of the CITU-affiliated Central Organisation of Tamil Nadu Electricity Employees told The Times of India. Even though unions were opposing the restructuring in principle, their focus would now be on settlement of issues concerning 72,000 pensioners and one lakh employees in the TNEB, he said.

The TNEB on Monday took a major step towards splitting up the loss-making behemoth when a new company for transmission was incorporated. Another entity will soon be incorporated for distribution and generation, with TNEB remaining the holding company.

Employee unions felt that the process of creating new entities for different functions now carried out by the board is likely to affect the service conditions of employees. Moreover, when the assets and liabilities were valued, the unions would also need to be consulted.

Vijayan said employees would prefer the Kerala model, where the state government is resisting the need to form different transmission, distribution and generation companies by mooting the idea of converting the Kerala State Electricity Board into a company and vesting the board's functions in a single entity.

Under Sec 131 of the Electricity Act, 2003, the property of the state-owned power utility should be vested in the state government. Thereafter, the assets should be transferred to other newly created entities. This provision could be invoked to form a company on the Kerala model. "If the government moots such a proposal, the Centre should accept it," he said.