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Shimla, Feb 9,
The ongoing debate over the future of the Himachal Pradesh State Electricity Board Limited (HPSEBL) seems to be intensifying further, as the Joint Action Committee (JAC) of HPSEB Employees, Engineers and Pensioners has strongly objected to reported remarks attributed to the State Finance Secretary suggesting that the 16th Finance Commission had recommended privatisation of the power utility.
Calling the claim “factually incorrect and misleading,” the JAC stated that no recommendation of the Sixteenth Finance Commission of India regarding privatisation has been accepted or approved by the Union Government so far. Therefore, such observations cannot be treated as final, binding or mandatory.
The committee emphasised that Finance Commission recommendations are advisory in nature unless formally accepted by the Centre. Unlike statutory provisions or approved grants such as Revenue Deficit Grants, the JAC said, suggestions contained in the Commission’s report do not automatically become enforceable policy decisions.
“Improper to use unaccepted recommendations”
The JAC cautioned the State government against citing unapproved recommendations as the basis for policy decisions, particularly on a sensitive issue like privatisation of the state power utility. It maintained that presenting such suggestions as a mandate of the Finance Commission was improper and risked creating confusion among employees and electricity consumers.
Issuing a statement on Tuesday, JAC Convenor Hira Lal Verma accused the Finance Department of attempting to mislead the government under the pretext of the 16th Finance Commission’s report. He clarified that when the Commission’s report was presented in November last year, no recommendation to pack up HPSEBL or convert it into a private entity had been accepted by the Union Government.
“Tooth and Nail” opposition
The committee made it clear that any move to privatise HPSEBL would be resisted “tooth and nail.” It argued that such a decision would be detrimental to the interests of the hill state, electricity consumers, employees and pensioners.
According to the JAC, projecting privatisation as an inevitable reform measure could create unnecessary apprehension among staff and the public. The committee reiterated that restructuring or reform in the power sector must be undertaken in a transparent manner and in consultation with stakeholders.
The controversy comes at a time when fiscal and structural reforms in state utilities are being closely debated across the country, particularly in financially stressed states. However, the JAC has firmly maintained that no decision regarding HPSEBL’s privatisation has legal backing at this stage and any such move would face strong opposition from employees and pensioners alike.
HimachalScape will continue to track developments in the evolving debate over the future of HPSEBL and the state’s power sector reforms. Keep tuned with us.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
