Government Cracks Down on Power Company Directors Over Violations
Hyderabad, January 29 – The state government in Telangana has initiated stringent measures against directors appointed in power companies during the previous administration. In a significant move, 11 directors, including 9 from Southern Discom and Northern Discom, have been dismissed for prolonged violations of regulations. Energy Principal Secretary Rizvi issued orders on Monday to terminate these directors, signaling a firm stance against non-compliance.
Additionally, 10 directors from Transco and Genco, who have been found to persistently flout regulations, have indirectly faced reprimand from the Energy Department. Their removal is imminent, with orders already issued to dismiss 7 directors from TSSPDCL and 4 from NPDCL.
The reshuffle in power company leadership reflects a broader push for reform. Criticism has mounted over the appointment of retired personnel to critical positions, including CMD posts traditionally held by ISS officers. The recent resignations of Transco, Genco, and Discom CMDs before the new government took office underscored the need for change. The government has since appointed IAS officers to these roles, aiming to bring fresh oversight and accountability.
Decades of mismanagement have left power companies burdened with debt, surpassing Rs. 82 thousand crores. The continued presence of retired officers in leadership positions has drawn scrutiny, with allegations of irregular promotions and ill-advised decisions exacerbating financial woes.
Recent actions target directors who have overstayed their terms, some appointed well beyond retirement age. Despite orders for their removal issued as early as 2019, many directors remained in their roles, enjoying salaries exceeding Rs. 3 lakhs along with other perks. The government’s decision to dismiss 11 directors directly reflects its commitment to enforcing accountability in power company governance.
Criticism has also been directed at the previous administration’s appointment practices, with unqualified individuals reportedly entrusted with directorial roles based on factors other than merit. The recent overhaul has been welcomed by many, signaling a shift towards merit-based appointments and enhanced governance in the power sector.
