A day after Punjab’s farmers, backed by employees’ unions of the Punjab State Power Board (PSEB), went on a rampage in Chandigarh, Punjab received Union Power Ministry’s letter (dated September 4) granting it another three-month extension for unbundling its monolith power board into separate legal entities for generation, distribution and transmission functions.

“Punjab has been granted three-month extension till December 15 for unbundling the Punjab State Power Board (PSEB),” Chief Minister’s Media Advisor Harcharan Bains informed mediapersons on Wednesday. The letter again comes with the warning that this is the last time that the state is being granted an extension.

Seven years after it was mandated by the National Electricity Act, 2003, Punjab still remains one of the seven states resisting unbundling. While many of the non-complying states have taken the initial steps towards unbundling, Punjab has not taken even an in-principle decision.

After breaching 10 deadlines, Punjab was given what was to be a final deadline of September 15 by the Union Power Ministry. However, after weighing political pros and cons arising out of antagonising the 60,000-employee strong unions and farmers, CM Parkash Singh Badal seemed to be in no mood to unbundle the PSEB. He had twice written to Union Power Minister asking for another extension.

Despite running out of reasons to demand an extension — the paddy season will be over by September 15 and there are no polls in the state — Punjab has been able to get its 11th extension. Besides opposition from employees and farmers, the state has been citing inability to bear the burden from transfer of assets and liabilities of the PSEB, which is reeling under huge accumulated losses and debt.

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