Unbundling of PDD, JKSPDCL okayed
Jammu, October 25
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 Reorganisation Act, 2019, and repeal of the Jammu and Kashmir Electricity Act, 2010, the Central Electricity Act-2019, will come into effect on October 31, 2019, necessitating the restructuring of the JKPDD in terms of mandate, functions and jurisdiction between UT of J&K and UT of Ladakh.
As per the SAC , all the shares held by the Governor in JKSPDCL 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, JKSPTCL, 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 Union 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.
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 the 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 of 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 will be finalised by the JKPDD after the recommendations of the Board of Directors of these companies.
Following the SAC approval, the functions, mandate, and jurisdiction of the JKPDD will be divided between the UT of J&K and UT of Ladakh.
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.
The SAC further directed that the process be completed by November 30, 2019.
