From PSEB to PSPCL and PSTCL: How CMD rules in Punjab power utilities have changed since 2010

In the same year, a comprehensive tripartite agreement (TPA) was signed between the Punjab government, the management, and all unions and associations of PSEB, including the Punjab State Electricity Board Engineers’ Association (PSEBEA). The agreement was formally notified in May 2011.

As part of the restructuring framework, detailed qualifications, eligibility criteria and a selection procedure for the appointment of CMDs and directors of the two corporations were laid down, clearly envisaging that both entities would be headed by experienced power sector technocrats.

Following the unbundling, K D Chaudhari, a senior power engineer in the organisation, was appointed as the first CMD of PSPCL and PSTCL in June 2010. Although his tenure was extended in December 2017 up to February 2019, Chaudhari resigned in March 2017, days after the Congress government came to power in Punjab.

It was after his resignation that the first amendment to the CMD appointment rules was made in March 2017, allowing a principal secretary-level IAS officer to be appointed as CMD. The engineers’ association pointed out that this dilution of norms was carried out after consultations with all stakeholders. Subsequently, A Venuprasad, a principal secretary-rank IAS officer, was appointed CMD of PSPCL and PSTCL and served from March 2017 to December 2018.

In December 2018, the government reverted to the original spirit of the TPA by appointing Baldev Singh Sra, a technocrat from PSPCL, as CMD. He remained in the position until February 7, 2025.

Thereafter, as per the amended provisions introduced in 2017, Ajoy Sinha, a principal secretary-rank IAS officer, was appointed CMD of both PSPCL and PSTCL. He served until October-end this year, when Dr Basant Garg, a secretary-rank IAS officer, was given charge of CMD of both corporations.

The controversy has now resurfaced following a fresh amendment made this month, which further widens the eligibility criteria by allowing secretary-level IAS officers—serving or retired—to be appointed as CMD, without any consultation with stakeholders.

Reacting strongly to the move, the PSEBEA has termed the amendment a violation of the TPA. PSEBEA president Jasvir Dhiman said the latest change represents a further dilution of qualifications and bypasses the consultative process mandated under the TPA.

Referring to Clause 5(g) of the TPA, the association said any change in the qualifications or experience prescribed for CMDs and directors can only be made after consultation and mutual understanding with the signatories to the agreement. PSEBEA general secretary Ajaypal Singh Atwal said the recent amendment violates this clause and undermines the spirit and assurances given at the time of restructuring.

Demanding immediate withdrawal of the amended guidelines, the engineers’ body has urged the Punjab government to appoint a regular technocrat as CMD of PSPCL at the earliest. According to the association, sustained technical leadership is crucial to address mounting operational challenges and safeguard the long-term health of Punjab’s power sector. However, amid the ongoing agitation by PSEBEA, PSPCL transferred 17 members of the association late Tuesday night, including active office bearers.