PSEB Engineers Association opposes formation of new company

The Punjab government's nod to the Punjab State Power Corporation Ltd (PSPCL) to set up a separate power trading company has been strongly objected to by the PSEB Engineers Association.

The body pointed out that during discussions on unbundling of the electricity board in 2010, Chief Minister Parkash Singh Badal had given verbal assurances there would be no further unbundling and privatisation of power companies.

The association highlighted that in line with the transfer scheme notified by the state, PSPCL has to engage in the business of distribution, generation and trading. Further, a tripartite agreement was signed between state, successor companies of PSEB and PSEB Engineers' Association, along with other trade unions, after the unbundling of PSEB (Punjab State Electricity Board) in April 2010 which has been notified.

Sanjeev Sood General Secretary PSEB Engineers' Association said, "Clause 5 (g) states that any modification of transfer scheme, memorandum of articles of association will be made after consultation and understanding with the signatories of this agreement. However, now in violation of the tripartite agreement and verbal assurances, the state government has decided to form a new company for power trading."

He added further that the officials of PSPCL are currently procuring power from various sources and making banking arrangement for sale & purchase of power and there is full fledge power regulation organisation in PSPCL. Therefore, Association opposes the move to create another company for performing the job.

It may be recalled here that earlier, state government, gave nod to the Punjab State Power Corporation Ltd. to set up a separate power trading company to sell the surplus power likely to be generated from the upcoming thermal plants in the state to other states.

Also, the Chief Minister directed the Chairman of the PSPCL KD Chaudhri in the meeting to work out the modalities for establishing the power trading company so that it could be in place positively by September end this. Chaudhri apprised the Chief Minister that he had already done the desired homework in consultation with Principal Secretary Power Anirudh Tiwari and assured the Chief Minister to meet the deadline for setting up of power trading company as it was a highly professionalized and technical task to be undertaken with due care and deliberation by hiring the services of financial experts and technocrats.