A fresh government amendment permitting secretary-level IAS officers to head Punjab's power corporations has ignited a major controversy, with engineers protesting what they call a systematic dilution of recruitment norms for top posts since 2010.
The Genesis: Unbundling and the Tripartite Agreement
The roots of the current dispute trace back to the restructuring of the power sector in Punjab. For over fifty years, the Punjab State Electricity Board (PSEB) managed the state's entire power ecosystem. In line with national reforms under the Electricity Act of 2003, the state government unbundled PSEB on April 16, 2010. This split created two separate entities: Punjab State Power Corporation Limited (PSPCL) for generation and distribution, and Punjab State Power Transmission Corporation Limited (PSTCL) for transmission.
A crucial framework for this transition was the Tripartite Agreement (TPA) signed in 2010 between the Punjab government, the management, and all unions and associations of the erstwhile PSEB, including the Punjab State Electricity Board Engineers’ Association (PSEBEA). Formally notified in May 2011, this agreement clearly outlined that both corporations would be led by experienced power sector technocrats, establishing detailed qualifications and a consultative selection process for appointing Chairmen-cum-Managing Directors (CMDs) and directors.
A Timeline of Changing Rules and Leadership
Following the unbundling, the first CMD of both PSPCL and PSTCL was K D Chaudhari, a senior power engineer from within the organization, appointed in June 2010. His tenure, extended in December 2017, was cut short when he resigned in March 2017, shortly after a new Congress government took charge.
Chaudhari's exit triggered the first significant change. In March 2017, the rules were amended to allow a principal secretary-level IAS officer to be appointed as CMD. The engineers' association notes this initial dilution was at least done after stakeholder consultations. Accordingly, A Venuprasad, an IAS officer of principal secretary rank, served as CMD from March 2017 to December 2018.
The government briefly reverted to the TPA's original intent in December 2018 by appointing Baldev Singh Sra, a PSPCL technocrat, as CMD. He held the position until February 7, 2025. The rules amended in 2017 were then invoked again to appoint Ajoy Sinha, another principal secretary-rank IAS officer, as CMD. He served until October 2025, when Dr. Basant Garg, a secretary-rank IAS officer, took over.
The Latest Flashpoint and Engineer Protests
The controversy has now erupted anew with a recent amendment this month. The new change further widens eligibility, allowing serving or retired secretary-level IAS officers to be appointed as CMD. Crucially, this amendment was made without any consultation with the stakeholders signatory to the original TPA.
The Punjab State Electricity Board Engineers’ Association (PSEBEA) has reacted strongly, labeling the move a direct violation of the Tripartite Agreement. PSEBEA president Jasvir Dhiman argues it represents a further dilution of qualifications and bypasses the mandated consultative process. The association cites Clause 5(g) of the TPA, which states that any change in qualifications for CMDs and directors requires consultation and mutual understanding with all signatories.
PSEBEA general secretary Ajaypal Singh Atwal has stated that the recent amendment violates this clause and undermines the spirit of the restructuring assurances. The engineers' body is demanding the immediate withdrawal of the amended guidelines and the urgent appointment of a regular technocrat as CMD of PSPCL. They emphasize that sustained technical leadership is vital to tackle operational challenges and ensure the long-term health of Punjab's power sector.
Amid this agitation, the management of PSPCL transferred 17 members of the PSEBEA, including active office bearers, in a late-night move, escalating tensions further.
