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In the annual general meeting of PSEB Engineers' Association(PSEBEA) held at Patiala on 30-09-2008, Er. Shailendra Dubey, Secretary General, All India Power Engineers' Federation (AIPEF) hailed the decision of keeping Kerala State Electricity Board as one public sector company and suggested that same Model can be followed in Punjab. "The unbundling of State Electricity shall lead to bankruptcy of the country and thus review of Electricity Act 2003 is in national interest", he concluded.He informed the gathering that 'only recently Kerala Govt. has issued a notification to convert Kerala Electricity Board into one public sector Company' and exhorted to implement 'a similar structure for PSEB'.
Padamjit Singh Chairman All India Power Engineers' Federation stressed that generation, transmission and distribution be held together in Punjab for optimum and efficient operation of power system. He warned that major reliance on private sector generation can lead to a bankrupt Punjab.
It is ironical to note that the pro-congress leadership of KSEB Engineers' Association (KSEBEA) an affiliate of All India Power Engineers' Federation (AIPEF) in Kerala had decided to move along with INTUC lead solidarity forum to go against Kerala model due to political reasons.
Courtsey: Press Release of PSEB Engineers' Association Dated 30-09-2008
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There is a legal snag in the matter of concurrent list ,viz:-any state law made in contravention to a central legislation should get presidential assent and become law to circumvent the central legislation article 254(2) states:Where a law made by the Legislature of a State with respect to one of the matters enumerated in the Concurrent List contains any provision is repugnant to the provisions of an earlier law made by Parliament or an existing law with respect to that matter, then, the law so made by the Legislature of such State shall, if it has been reserved for the consideration of the President and has received his assent, prevail in the State:
Provided that nothing in this clause shall prevent Parliament from enacting at any time any law with respect to the same matter, including a law adding to, amending, varying or repealing the law so made by the Legislature of the State.”
This I hope will explain the reason why the matter has not been taken to the court,as Mr.R.Muraleedharan asks However,it is morally incumbent upon the central govt. to honour the legitimate concerns of a state govt. on a subject which is in the concurrent list and discreetly avoid a clash.Political sagacity and respect for federal structure of the constitution call for it.
Further,because the subject of electricity falls under the concurrent list of the Constitution of India as commented by Mr Satyanathan,central govt has no authority to dictate terms to state on this subject as per constitutional provisions.Thus all that is going on from the side of central govt are clearly illegal and gross violation of constitution.Then I wonder why AIPEF or any of its constituent state level organisations are not approaching court of law ehellenging the moves of central govt in this issue!!!
It is really unfortunate that the Ministry of Power is obstinately demanding bifurcation of KSEB,in spite of the government of Kerala conceded to abide by the electricity Act 2003.
The very nature of power industry gives it the status of natural monopoly.That is to say that to minimise the cost of production and optimize the out put the different stages of industry ,per force have to be vertically integrated , to bifurcate or unbundle it will only entail cost escalation and wastage of resources.The experience of power sector unbundling so far has offered empirical evidence to this fact.
The obduracy of the Govt. of India the matter of bifurcation is not only ill advised but morally hazardous as given that, the subject of electricity falls under the concurrent list of the Constitution of India
By simply transforming the management style of SEBs no magical effect can happen.The basic issues of failure of SEBs are not addressed.The SEBs are mismanaged deliberately to help private sector to enter ,because electricity is a commodity, can be sold out like hot cakes.I n the case of electricity, the seller need not go to the purchaser,in fact purchasers are rushing to sellers ,a peculiar phenomenon no where we can see.So the existing SEBs if tuned up can very well meet the chellenges.Privatisation/corporitisation not at all necessary.
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