Punjab Newsline
HPSEB ceases to exist – Unbundling of board starts
VINOD KUMAR GUPTA
Wednesday, 17 June 2009
SHIMLA: HPSEB ceases to exist after the issuance of notification by Himachal Government to start the unbundling process to comply with the provisions of Electricity Act 2003.

Himachal Pardesh issued notification on Tuesday transferring the entire assets and liabilities to state government. The Government took this step after it was made clear that no further extension is likely to be issued by Ministry of Power. The last extension to unbundle the state electricity board expired on June 15.

The notification has been issued under Section 131(1) of the Electricity Act 2003 for the purpose of vesting of functions, priorities, interest, rights, obligations and liabilities of the board in the state government for re-vesting in a corporate entity or entities as deemed fit by the government. Till that time, the affairs of the board will be managed on the behalf of the government by a governing committee headed by Chairman of the board and assisted by others members of the board.

THE joint front of employees and engineers wanted the board to be reorganised into one company on the pattern of “ Kerala model ” which should handle all three activities of generation transmission and distribution. The government is likely to decide the number of companies in next few months further after getting the proposals of joint front examined legally. However it was made clear all the companies would be government companies. The transfer scheme for re-vesting under Section 131(2) will be finalised within a period of six months

Meanwhile TNEB has registerd a transmission company to transfer all the transmission lines and grid stations to the company. Government would also register another company to look after generation and distribution works.