HC notice to Rana Gurjit, Punjab on ‘conflict of interest’

CHANDIGARH: The Punjab and Haryana high court on Monday put Punjab government, Punjab State Power Corporation Limited (PSPCL) and cabinet minister Rana Gurjit Singh on notice on a plea alleging conflict of interest in dealing with the affairs of the power distribution company.

A division bench comprising justices Ajay Kumar Mittal and Amit Rawal sought response by November 14 on a public interest litigation (PIL) filed by advocate HC Arora stating that the minister should not deal with the matters pertaining to determination of rates for purchase of power from private producers by the PSPCL and in matters pertaining to decision making for shutting down of government thermal plants at Bathinda, Rupnagar and Rajpura.

The petitioner had submitted that Rana Gurjit, who is minister for power, and his wife, Rana Rajbans Kaur, are majority shareholders in Rana Sugar Mills, a company producing power. The company has signed two agreements for sale of power to the PSPCL. One agreement was in December 2012 and second in May 2005 for a period of 12 years, for sale of power to PSPCL. “The Punjab State Electricity Regulatory Commission, which determines power tariff, is bound by the policy decisions of the government. Singh has conflicting interest, as an individual and as a cabinet minister. Such a person should not have been given the portfolio as power minister,” Arora said. The government is in the process of deciding about shutting down the thermal power plants run by state. The power ministry is to take a final decision in this regard, Arora said adding that the benefit of closing the thermal plants under the state sector, would be directly to private companies producing power.