SAC approves restructuring of PDD, JKSPDCL, JKSPTCL for implementation of Power sector reforms between UT of J&K and UT of Ladakh

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SRINAGAR: The State Administrative Council (SAC) which met under the chairmanship of Governor, Satya Pal Malik accorded sanction to the unbundling of the Jammu and Kashmir Power Development Department (JKPDD), J&K State Power Development Corporation limited (JKSPDCL) and J&K State Power Trading Company Limited (JKSPTCL) (to be renamed as J&K State Power Trading Corporation Limited) .

Consequent to the enactment of the Jammu and Kashmir Reorganization Act, 2019 and repeal of the Jammu and Kashmir Electricity Act, 2010, the Central Electricity Act-2019 will come into effect on 31.10.2019, necessitating the restructuring of JKPDD in terms of mandate, functions and jurisdiction between UT of J&K and UT of Ladakh.

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 stamp duty payable, if any, shall be exempted. 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). 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.

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. The interest of serving employees of JKPDD, JKSPDCL and JKSPTCL shall be protected and not varied to their disadvantage in terms of service benefits. 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.

Following the SAC approval, the functions, mandate, and jurisdiction of JKPDD will be divided between UT of J&K and UT of Ladakh. The functions of JKPDD comprising transmission, distribution and implementation of Centrally Sponsored Schemes will be unbundled into one Transco i.e J&K PTCL and two Disco company’s i.e JPDCL and KPDCL. The unbundling will also involve incorporation of a new company in Ladakh for handling generation and distribution functions i.e Ladakh Power Company Limited (LPCL).

All the functions of generation, transmission, distribution and trading will be handled separately to make power sector in Jammu and Kashmir commercially viable and competitive central assistance in the form of Power Reforms Grant can be availed.

SAC further directed that the proposal for regular promotions in the Engineering Cadre of the Power Development Department be processed for consideration of the Competent Authority in the Government, as a onetime exception. SAC further directed that the process be completed by 30.11.2019.

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