Kindly refer to All India Power Engineers Federation (AIPEF) letter No. 32 - 2019, letter No.26 - 2019 dt 11-09-2019 and letter No 28-2019 dt 23-09-2019 sent to you to kindly defer any proposal of unbundling of J&K Power Sector.
2. AIPEF had requested you to kindly shelve the proposal of unbundling of Power Development Department of J&K in view of the provision that Unbundling of Distribution , Transmission and Generation is not mandatory as per Electricity Act 2003. Kerala and Himachal Pradesh are states who continue as integrated utility in the name of KSEB Ltd and HPSEB Ltd respectively. Both the states have shown remarkable improvement under integrated system .But it is learnt through news papers that State Administrative Council under your Chairmanship has unfortunately decided to unbundle the Power Development Department in four corporations.
3. As per the SAC decision, all the shares held by Governor in JKSPDCL, JKSPTCL and Jammu and Kashmir State Power Transmission Company Limited (JKSPTCL) (to be renamed as Jammu and Kashmir State Power Transmission Corporation Limited) shall be transferred to the Administrative Secretary, JKPDD. The JKSPDCL shall control the composition of the Board of Directors of the Companies including JKSPDCL, JKPTCL, Jammu Power Distribution Company Limited (JPDCL) (to be renamed as Jammu Power Distribution Corporation Limited) and Kashmir Power Distribution Company Limited (KPDCL) to be renamed as Kashmir Power Distribution Corporation Limited). As per reports in this regard suitable provisions shall be made in the Articles of Association (AoA) of four companies and MoA of JKSPDCL. The Corporations shall be headed by the Administrative Secretary, JKPDD, Union Territory (UT) of Jammu and Kashmir as Chairman and Director having representatives from other Departments and from Government of India, Ministry of Power. The Administrative Secretary, JKPDD will approve necessary changes in the MoA and AOA of these companies which shall be placed before the Board of Directors/shareholders of these Companies for approval.
4. According to reports the staff of different wings of the JKPDD shall be deputed to the respective corporations and assets and liabilities of the Department shall also be handed over to the respective Corporations. All the staff of JKPDD and JKSPDCL proposed for transfer to these successor companies and JKPDD, UT Ladakh shall be transferred on existing terms and conditions protecting their lien and their existing emoluments.
The Management of all these companies shall frame their Recruitment rules and Delegation of Financial Powers and will be finalized by the JKPDD after the recommendations of the Board of Directors of these Companies. Till these successor corporations frame and adopt their own rules, the extant Government rules and regulations shall be applicable.
5. AIPEF is of firm view that decision of unbundling of Power Development Department is not at all in the larger interest of State and Power Sector. As per the experience of other States of the country mere unbundling is not going to yield any positive result rather it will further deteriorate the dim power situation of state and complicate the issues. Therefore it is requested not to take any decision in haste to unnecessarily unbundle the power department to create mesh. Kindly review the decision taken by State Administrative Council.
Thanking you with regards.
Sincerely Yours
Shailendra Dubey
Chairman
CC.
1. Hon'ble Prime Minister, Govt Of India, New Delhi.
2. Hon'ble Power Minister, Govt Of India, New Delhi.
3. Chief Secretary, J&K Govt., Srinagar.