Basant Garg IAS

Punjab Government on Tuesday dismissed Punjab State Power Corporation Limited’s (PSPCL) Director (Power Generation) Harjit Singh on charges of financial irregularities linked to inflated fuel costs at state-run thermal power plants.

The move, described as a “major administrative action” within the power sector, comes just two days after the suspension of Ropar and Goindwal Sahib Chief Engineer Harish Sharma for similar lapses. The termination order, issued by the newly appointed Administrative Secretary (Power) and PSPCL chairman-cummanaging director (CMD), Basant Garg, cited findings that government-run thermal plants in Ropar and Goindwal Sahib were purchasing fuel at a significantly higher cost — between Rs 0.75 to Rs 1.25 per unit — compared to private power producers in the state.

No formal showcause notice or departmental inquiry was reportedly initiated before his removal. Sources within PSPCL indicated that the action may have been precipitated by policy disagreements between Harjit Singh and the State Government, particularly over the proposed liquidation of PSPCL’s noncore properties and the signing of new Power Purchase Agreements (PPAs) with private players. Appointed as Director (Generation) in October 2024, Harjit Singh was said to have opposed several government-backed initiatives aimed at financial restructuring of the power utility.

This discrepancy, despite access to coal from Punjab’s own Pachhwara mine, allegedly led to losses amounting to crores for the State Power Corporation. The order, describing Harjit Singh’s conduct as “grave misconduct resulting in financial loss to the state exchequer”, invoked service rules that permit termination without notice in cases of serious wrongdoing.

Notably, no formal showcause notice or departmental inquiry was reportedly initiated before his removal. Sources within PSPCL indicated that the action may have been precipitated by policy disagreements between Harjit Singh and the State Government, particularly over the proposed liquidation of PSPCL’s noncore properties and the signing of new Power Purchase Agreements (PPAs) with private players. Appointed as Director (Generation) in October 2024, Harjit Singh was said to have opposed several government-backed initiatives aimed at financial restructuring of the power utility.

The development underscored a growing churn within Punjab’s power sector bureaucracy, coming close on the heels of a leadership reshuffle the previous week that saw senior IAS officer Basant Garg replacing AK Sinha as the CMD of both power corporations — PSPCL – popularly known as Powercom; and PSTCL (Punjab State Transmission Corporation Limited) – popularly known as Transco.

Sinha’s sudden transfer, that too without a new posting, had already raised eyebrows within administrative circles. Meanwhile, the Government’s decision to suspend the Chief Engineer Sharma has sparked strong reactions from the PSEB Engineers’ Association, which termed the termination “arbitrary and demoralizing”.

Association members met Power Minister Sanjeev Arora on Monday, urging him to reconsider the punitive actions against Harish Sharma. “The higher fuel cost is a technical, not financial, issue. Government plants are older and less efficient than private ones. Their lower Plant Load Factor naturally pushes up generation costs,” said a senior PSPCL engineer.

While the State Government maintained that strict accountability is necessary to check fiscal mismanagement and ensure transparency within PSPCL, the move has also raised questions about the handling of an officer widely regarded as upright and professional. The PSEB Engineers Association strongly defended Harjit Singh’s integrity, asserting that “there was no doubt about his honesty and commitment.” The Association argued that the reasons cited for his termination were “technically not justified”, warning that such actions against honest officers risk demoralizing the engineering cadre.