Privatisation of Electricity Distribution: Staff service benefits must be protected, reiterates Guv
Punjab Governor and UT Administrator Gulab Chand Kataria has reiterated that all existing service benefits of employees of the UT Electricity Department must be safeguarded and grievances of the UT Powermen Union addressed comprehensively.
The UT Powermen Union had filed a civil writ petition in the Punjab and Haryana High Court. The court dismissed the plea challenging process initiated by the Chandigarh Administration for privatising the Electricity Department.
Further, the UT Powermen Union filed a special leave petition, which was dismissed by the Supreme Court on December 2. During a meeting held today, the Administrator again gave directions that all existing service benefits of employees must be safeguarded.
As part of the major structural reforms in the power sector under the 'Aatm Nirbhar Bharat Abhiyan' launched by the Government of India, the process for privatisation was initiated in Chandigarh, with M/s Eminent Power Company Limited emerging as the successful bidder. After approval from the Union Cabinet, Chandigarh Power Distribution Limited (CPDL) has been formed. Advancing the privatisation process, the letter of intent (LoI) has also been issued by the Chandigarh Administration to the highest bidder.
In order to protect the interests of employees being transferred to CPDL, the Chandigarh Electricity Employees Master Trust has been created under the Indian Trust Act, 1882. This trust will manage all terminal liabilities of the transferred employees, with an initial fund of Rs 263 crore allocated by the company. The Trust shall be headed by the Secretary, Engineering, and managed by the Board of Trustees comprising officers of Chandigarh Administration with Superintending Engineer Electricity Circle as the member secretary. The Board will manage day-to-day functioning of the Trust.
The Chandigarh Electricity Reforms Transfer Scheme has been formulated and the transfer of functions from Chandigarh Administration to the CPDL shall be done after notification of the Transfer Scheme, wherein specific provisions have been incorporated to safeguard the interests of the employees.
All benefits of service accrued, including their entitled government benefits during their service under the Administration immediately before the transfer date, to the company, shall be fully recognised and protected and taken into account for all purposes. These include the payment of any or all terminal benefits. The Accrual Study shall be carried out every year to assess the terminal liabilities of employers and the company shall deposit the amount accordingly in the Trust.
The transferred employees, without their prior concurrence, shall not be posted outside Chandigarh by the company. Procedures for sanctioning and disbursing terminal benefits from the trust will be determined by the Administration based on recommendations from the Board of Trustees.