In a significant move amidst an ongoing controversy, the Punjab government has revised the eligibility criteria for the top post at the state's power utility. The decision, notified on Monday, December 23, 2025, now permits the appointment of a Secretary-rank Indian Administrative Service (IAS) officer as the Chairman-cum-Managing Director (CMD) of the Punjab State Power Corporation Limited (PSPCL).
Notification Amends Long-Standing Agreement
The government issued an official notification stating it can now "appoint an IAS officer, who has served or is serving in the rank of secretary or above, whether in service or retired, to the post of chairman-cum-managing director, PSPCL." This amendment effectively broadens the pool of eligible candidates to include officers of both Principal Secretary and Secretary rank.
This change marks a departure from a long-standing understanding. When the erstwhile Punjab State Electricity Board (PSEB) was unbundled, a tripartite agreement was reached between the government and the board's engineers. This pact stipulated that the CMD of the successor corporation, Powercom (now PSPCL), would be either a technocrat or an IAS officer of at least Principal Secretary or Additional Chief Secretary rank. The state had adhered to this agreement until recently.
Controversial Appointment Triggers Legal Challenge
The sequence of events leading to the rule change began with the retirement of the previous PSPCL CMD, Baldev Singh Sran, in February 2025. The government initially assigned the charge to AK Sinha, the Principal Secretary of the Power Department. However, in a shift two months ago, Sinha was relieved of both his departmental and CMD roles.
The charge was then handed over to Basant Garg, a Secretary-rank IAS officer. This appointment was immediately challenged by power engineers, who moved the court arguing it violated the established norms and the tripartite agreement. On November 20, the court directed the state's Chief Secretary to file an affidavit clarifying if the CMD post was reserved for IAS officers and, if not, the rationale behind such an appointment in an autonomous body.
Government's Move and Mounting Opposition
Sources indicate that just before formulating its response to the court, the Punjab government issued the amendment notification on Monday. This pre-emptive move legally paves the way for Garg's continuation or similar future appointments.
The decision has sparked strong criticism from employee associations and retired officials. A retired senior officer condemned the move, stating, "It is a violation of the tripartite agreement as no consultations were held with signatory employee associations and unions as per Clause 5(g). They have degraded the post of CMD. This is a serious onslaught and engineers and employees cannot be mute spectators."
The PSEB Engineers' Association had already expressed its resentment to Chief Minister Bhagwant Singh Mann and Power Minister Sanjeev Arora. In a representation, they argued that assigning the CMD charge to a Secretary-level officer was inconsistent with existing qualifications and would "disrupt the informed decision-making process" and "create a sense of uncertainty and instability in the power sector."
The amendment sets the stage for a continued confrontation between the state government and power sector professionals, with potential implications for administrative stability and technical governance within PSPCL.
