Punjab state power board to be split into 5 firms

The empowered committee for accelerated power sector development in Punjab today approved the unbundling and corporatisation of the Punjab State Electricity Board (PSEB) as mandated by the Electricity Act, 2003.

The approval was given at a meeting of the committee presided over by Chief Minister Amarinder Singh here. The PSEB would be reorganised into generation, transmission and three distribution companies, said an official spokesman.

It was also decided to have a holding company to coordinate the business of generation and distribution companies in the transition period.

A holding company would be set up as the successor to the PSEB in relation to all assets and liabilities, and functions other than those of transmission, he added.

The generation and distribution companies would be subsidiaries of the holding company, which would have the overall responsibility for coordinating and overseeing generation, procurement of power from central power undertakings and other sources, and distribution, he said.

The empowered committee also finalised the configuration of the three distribution companies. The proposal would be put up to the Cabinet for approval shortly, he said.

Wheat export: The state government has sought the Centre's approval to export wheat and cotton to Pakistan. The chief minister took up the issue with Union Food Minister Sharad Yadav, according to a government release in New Delhi today.

"The Centre's clearance will pave the way for many important trade alliances with Pakistan. It will also boost the state's economy and open more avenues for employment," Singh said. The food ministry had recommended the case to the external affairs ministry for clearance, he added.

Currently, foodgrain is not among the commodities in the official approved list for trade between India and Pakistan. With domestic prices soaring, Pakistan has decided to import wheat to build reserves to stabilise prices.

Markfed officials met a trade delegation from Pakistan and the Pakistan Flour Mills Association. They issued a letter of interest for import of 200,000 metric tonnes of wheat immediately. Pakistan's requirement was about 2 million metric tonnes of wheat, the chief minister said.

"The trade will also ease the pressure on railway rakes for movement of wheat since wheat can be exported to Pakistan by trucks through the Wagah border. It will save time on account of freight to port towns as the present policy of the central government for wheat envisages delivery of wheat at port towns only," Singh said.

India could save about Rs 63 crore on export of 1 million metric tonne of wheat to Pakistan, he said. "A proposal has also been sent to the commerce and external affairs ministries to open the Wagah border for supply of cotton to Pakistan by Punjab," he said.

Singh said Pakistan was importing cotton this year because of lower output. While the expected consumption was 12.1 million bales, only 9.7 million bales were produced this year, leaving a gap of 2.4 million bales. One bale is equal to 170 kg.

After a long time, Punjab has experienced a good cotton crop this year. The production of cotton in Punjab is estimated around 1.29 million bales as against 800,000 bales.