JKEEGA denounces power sector reform draft as ‘anti-employee’

Srinagar, Apr 4: J&K Electrical Engineers Association (JKEEGA) has sharply criticized a draft Memorandum of Understanding (MoU) submitted by the Finance Department regarding power sector reforms, calling it “anti-employee.” The document, submitted via OM No: 7562334 FD-RESOLoan/24/2023-03 /647 dated March 19, 2025, outlines proposed reforms in the power sector and payment of subsidies.

In a press release, JKEEGA President Er. Pirzada Hidayatulla emphasized that according to SO 109 of 2020 (dated March 20, 2020), employees of the former JKPDD remain government employees following the department’s unbundling into various corporations. Clause 15 of the SO guarantees salaries through the annual budget rather than grants or subsidies.

The organisation warned that linking salaries to revenue realization in any corporation could significantly impact salary disbursement and settlement of terminal benefits, which “in no case shall be acceptable to engineers of PDD.” They also noted that salary costs for DISCOMs cannot be reduced given that assets have increased by approximately 1,000 percent over the last three decades while the corporations remain understaffed.

Regarding proposed power sector reforms, JKEEGA stated that major loss reduction schemes and smart meter installations are already underway to improve billing and collection efficiency.

The organization maintains that “setting any target beyond the approved scheme targets shall not be achievable and thus not acceptable,” arguing that the draft MoU should align with existing approved targets from centrally sponsored schemes.

JKEEGA noted that billing efficiency of 100% and collection efficiency of 70% will be achieved according to timelines fixed in approved schemes, as significant portions of Rural Distribution Scheme (RDSS) works are implemented by Central Public Sector Undertakings (CPSUs), which are currently behind schedule.

JKEEGA strongly opposed proposed outsourcing of operations in various corporations, calling it “anti-employee” while pointing out that many contractual employees and temporary workers are still awaiting regularization as outlined in SO 109 of 2020. JKEEGA compared the situation to the proposed PGCIL takeover of JKPTCL in 2022, which was ultimately abandoned after being deemed “anti-people and anti-employee.”

JKEEGA indicated it is “watching the situation very closely and exploring all legal options” to counter what it views as an anti-employee move by the government. President Hidayatulla appealed to Chief Minister Omar Abdullah’s NC Government to reject any “anti-employee MoU” and ensure that the rights of engineers and employees of the former JKPDD are honoured like other government employees. He called for the Finance Department’s proposed MoU to be reviewed with stakeholder input.