As part of the review of the Electricity Act, 2003, the Centre has allowed state transmission utilities to trade in power for another year and has extended the deadline for unbundling of 13 state electricity boards by two-12 months.

State transmission utilities were to stop trading in power by June 9, but following representations from Orissa and Karnataka, the power ministry has decided to extend the deadline till June next year.

The decision to extend the unbundling deadline for the 13 SEBs follows demands from the states and the Left parties.

While Assam has been given the shortest extension of two months from June 10, Himachal Pradesh, Kerala, Meghalaya, West Bengal and Tamil Nadu have time till June 10, 2005 to unbundle their SEBs into separate companies handling transmission, distribution and generation activities.

Chhattisgarh, Bihar, Maharashtra, Punjab and Gujarat have been given an extended deadline of six months for unbundling their respective SEBs, while Madhya Pradesh has time till December 31, 2004 to set up separate companies. Jharkhand has to unbundle its SEB by March 31, 2005, as per the power ministry's decision.

While releasing the Common Minimum Programme of the UPA government, Prime Minister Manmohan Singh had committed to the extension.

Officials said that the new deadlines have been communicated to the state governments though no milestones have been put in place for the SEBs. The CMP had also proposed a review of the Electricity Act 2003.