CHANDIGARH: The unbundling of Punjab State Electricity Board (PSEB) now seems inevitable following Government of India's proposal to complete the unbundling of remaining seven State Electricity Boards by June 9, 2008.

Punjab government has been seeking repeated extension in the dead line to disband the electricity Board on frivolous grounds. The Punjab Government was given eighth extension up to May 31 on February this year.

According to highly placed sources the center government is determined not to give further extension to those seven states where the unbundling of state electricity boards has not been completed so for as per Electricity Act 2003.

There are seven states in the country where the State Electricity Boards still exist due to pressure build by board employees.  The present extension to continue as state electricity boards for Tamilnadu and Kerala is June 9 this year.

The remaining five state electricity boards of Punjab, Himachal, Bihar, Jharkhand and Chhatisgarh have been given extensions up to May 31 this year to complete the restructuring formalities.

The controversy of unbundling PSEB in three or more companies has been going in for the last five to six years. HS Bedi President of  PSEB Engineers Association told The Pioneer that the association has suggested that it is possible to retain the board without disturbing the present set up of the PSEB to meet the legal requirements of Electricity Act 2003 .

This can be done by creating a new company to trade power as per provisions of the Act 2003.

Punjab Government has reappointed a company, Earnest and Young, last year as consultant to submit report on the restructuring of the PSEB.  PSEB Engineers had a number of official meetings with the consultants.

According to engineers the restructuring of PSEB is a high risk, low return and irreversible process and all the stake holders must be involved in the process. Government would have to take the responsibility of conversion of state Government loans in to equity and taking over the liabilities related to employee's retirement benefits. Failure of reform process in different states is attributed mainly  to political interferences in day to day working of the state power utilities.

Delhi and Orissa are the living examples of failures of reform process. The performance of power sector and achievements depends a lot on Government support and policies.

However, Gujarat is an example where the reforms have yielded results. 24 hour power supply without any cut during last one year is no mean achievement. Government is ensuring full and timely payment of subsidy besides states determination to check theft of power.

If the reforms in power sector of Punjab are to succeed after the restructuring of PSEB, the Government would have to stop interference in day to day working of power utilities and should heed to the advice of professionals. Padamjit Singh a retired Chief Engineer of Board said that power is a vital sector for the success of economy of state this can not be left to bureaucrats.