Govt to corporatize PDD, registers power companies

In a first step towards corporatisation of the Power Development Department, the government has registered four power companies that will deal separately with transmission, distribution and trading of power in the state.
According to officials, the companies have been registered with the Registrar of Companies (ROC) and the decision is aimed at improving the power supply scenario in the state by overcoming distribution losses and enhancing the revenue realization.
Although the board of directors as well as the managing directors of the companies will be nominated by the government separately, in a first step towards raising these companies the state government has registered them under the Companies Act. The government has registered one transmission company, two distribution companies and one trading company in the state.
The companies have been named as Jammu and Kashmir Power Transmission Company, Jammu and Kashmir Power Trading Company, and two separate companies have also been created for the distribution of power in Jammu and Srinagar. Jammu Power Distribution Company has been designated as the distribution company for Jammu while Kashmir Power Distribution Company Ltd has been designated for Kashmir.
According to officials, the Maintenance and Rural Electrification wings of the Power Development Department will be designated as the distribution companies and they will continue to collect tariff from the consumers after purchasing the power from the trading companies.
These companies will hold quarterly meetings as well as annual general meetings and based on the performance any increase in the salaries of the employees will be affected.
The move has been necessitated as the state continues to foot the deficit on account of power losses here, officials said.
According to a senior government official in PDD, who didn’t wish to be quoted, the necessary formalities in the creation of the power companies have been completed and the staff position and the board of directors will be decided shortly.
Chief Engineer, PDD, Bashir Ahmad Khan, said: “The decision to create companies has been made to improve the functioning of the Power Development Department. He said the PDD has already initiated the process to take action against the employees in whose areas the revenue has fallen.”
Sources said the PDD has failed to meet budgetary estimates of revenue collection due to which the department is facing major losses. “However, the companies will work to reward the performing employees, while those who fail in their duties will be punished.”