Archive · 5 Nov 2025
Punjab Govt Sacks PSPCL Director Over Fuel Cost Mismanagement
Imagine the government runs a big electricity company.
The person in charge of making electricity at some of the company's power plants is being fired.
The government says this person didn't manage the money for coal well.
They claim the electricity from the government's plants costs more than electricity from private companies, even though the government has its own coal mine.
This has caused the company to lose a lot of money.
Another engineer was already suspended for similar issues.
Some people who work for the power company and former employees disagree.
They say the government's power plants are older and can't make electricity as cheaply as new private plants.
They also think the government might be trying to scare the workers because the government wants to sell some of the power company's land, and the workers are against it.
Punjab government terminated PSPCL Director (generation) Harjit Singh for alleged serious misconduct in fuel cost management.
The government claims state-run thermal plants are generating electricity at a higher cost per unit than private plants.
Harjit Singh's termination cites losses to the power utility due to higher fuel costs despite PSPCL owning a coal mine.
Chief Engineer Harish Sharma was previously suspended for similar alleged fuel cost irregularities.
The PSEB Engineer Association protested, claiming the actions are political interference and an attempt to intimidate engineers opposing the sale of PSPCL land.
- Who
- Punjab government, PSPCL Director (generation) Harjit Singh, Chief Engineer Harish Sharma, Administrative Secretary Basant Garg, PSEB Engineer Association
- What
- Termination of PSPCL Director (generation) Harjit Singh due to alleged serious misconduct in fuel cost management and higher electricity generation costs at state-run thermal plants.
- When
- Termination order issued on Tuesday; Chief Engineer Harish Sharma suspended effective November 1.
- Where
- Punjab, specifically at Guru Gobind Singh Super Thermal Plant (Ropar) and Guru Amardas Thermal Plant (Goindwal).
- Why
- The government cited significant losses to the power utility due to higher electricity generation costs compared to private plants, despite PSPCL owning a coal mine. Critics suggest it is related to opposition to the government's plan to sell PSPCL land.
Government's Stance
Engineers' Association and Former Official's Stance
Reason for Termination/Suspension
Government's Stance
The Punjab government terminated Director (generation) Harjit Singh due to serious misconduct in fuel cost management. They claim electricity generated from state-run thermal plants, despite having its own coal mine, costs more per unit (Rs 0.75 to Rs 1.25 higher) than private plants, leading to significant losses.
Engineers' Association and Former Official's Stance
The PSEB Engineer Association and a former chief engineer argue that the Ropar thermal plant, being older (40 years) and using sub-critical technology with smaller units (210 MW), cannot compete with newer, larger private plants. They believe the actions against engineers are an attempt to intimidate them due to their opposition to the government's plan to sell PSPCL land.
Appointment of Administrative Head
Government's Stance
The government appointed Basant Garg, an IAS officer, as Administrative Secretary of the Power Department and CMD of PSPCL and PSTCL to address operational and financial issues.
Engineers' Association and Former Official's Stance
The PSEB Association believes an IAS officer is not suitable for the CMD post and that a technocrat should be appointed to ensure professional decisions in power generation. They view the current appointments as political interference.
- Terminated Official
- Harjit Singh (Director, Generation, PSPCL)
- Reason for Termination
- Serious misconduct in fuel cost management leading to higher generation costs
- Affected Plants
- Guru Gobind Singh Super Thermal Plant (Ropar), Guru Amardas Thermal Plant (Goindwal)
- Cost Difference
- Rs 0.75 to Rs 1.25 per unit higher than private thermal plants
- Suspended Chief Engineer
- Harish Sharma
- Date of Termination Order
- Tuesday
- Administrative Secretary
- Basant Garg
- PSPCL Coal Mine Location
- Pachwara, Jharkhand