SHIMLA: The recent disappearance of Chief Engineer Vimal Negi has exposed the rot within Himachal Pradesh Power Corporation Limited (HPPCL).
This incident highlights a deeper crisis—bureaucratic dominance over technocrats in state-run Public Sector Undertakings (PSUs).
This imbalance has led to harassment of professionals, financial mismanagement, and a severe economic drain.
Bureaucrats at the Helm: Why Are Technocrats Being Sidelined?
A disturbing trend has emerged in Himachal Pradesh. Indian Administrative Service (IAS) officers are being appointed to lead PSUs, sidelining qualified technocrats. Organizations such as the Himachal Pradesh Tourism Development Corporation (HPTDC), Himachal Pradesh Horticultural Produce Marketing and Processing Corporation (HPMC), State Industrial Development Corporations, Agriculture Marketing Board, Himachal Pradesh State Electricity Board Limited (HPSEBL), and Himachal Road Transport Corporation (HRTC) are all controlled by bureaucrats.
These organizations require technical and sector-specific expertise to function effectively.
Instead, political favoritism ensures that IAS officers, who often lack domain knowledge, call the shots. The result? Mounting losses and declining efficiency.
But this is not infer that the all IAS are incompetent or cannot deliver the goods. There IAS officers who have charted the new success stories in many states and are pillar of governance.
But in Himachal if one goes by the plight of the state-run corporations, bureaucracy has failed the corporations.
IAS are trained more as "generalists' not as "Specialists" and as such are more articulate to run administration, looking after law and order and issues of governance.
CAG Report: Himachal’s PSUs Are Bleeding Money
According to the Comptroller and Auditor General (CAG) report, 14 out of 23 Himachal Pradesh PSUs are in the red, with cumulative losses reaching ₹5,143.4 crore. The worst-hit entities include:
HPSEBL: ₹1,809.61 crore in losses
HRTC: ₹1,707.12 crore in losses
HPPCL: ₹395.91 crore in losses
Himachal Pradesh Power Transmission Corporation: ₹552 crore in losses
Himachal Pradesh Financial Corporation: ₹180.97 crore in losses
Himachal Pradesh State Forest Corporation: ₹113.04 crore in losses
Himachal Pradesh Horticulture Produce Marketing Corporation (HPMC): ₹83.87 crore in losses
Himachal Pradesh Tourism Development Corporation (HPTDC): ₹27.27 crore in losses
These losses are not accidental. The CAG attributes them to mismanagement, political interference, and avoidable expenditures.
Controllable losses stood at ₹425.41 crore, with infructuous investments amounting to ₹44.54 crore over the last three years.
Why HPPCL is in Crisis
HPPCL, once envisioned as a powerhouse for hydropower development in the state, has now become a bureaucratic playground.
The current Managing Director (MD) and Director have been more focused on pleasing their political masters than on ensuring effective teamwork.
Instead of empowering technocrats, decision-making has been monopolized by IAS officers, leading to poor planning, execution delays, and financial setbacks.
The harassment of technocrats like Chief Engineer Vimal Negi is a clear indicator of the toxic environment within HPPCL.
Unrealistic targets, political pressure, and lack of professional autonomy have pushed technical experts to the edge.
The question remains—why are technocrats in key technical organizations being forced into submission while bureaucrats with little sectoral expertise make critical decisions?8
The Bureaucrat-Politician Nexus: A Recipe for Disaster
The bureaucrat-politician nexus is bleeding the state exchequer dry.
Instead of appointing professionals with sectoral knowledge, IAS officers—often unfamiliar with the complexities of power generation, transmission, and tourism—are at the helm.
This trend is not unique to HPPCL but extends to almost every PSU in the state.
The economic mess in Himachal Pradesh's PSUs is a direct result of this mismanagement.
Political patronage ensures that bureaucrats remain unaccountable, even as losses continue to mount.
The state government has even proposed merging loss-making PSUs, but without structural reforms, this move may do little to resolve the crisis.
Why Are NTPC, NHPC, SJVN, and ONGC Thriving?
A stark contrast can be seen in central PSUs like NTPC, NHPC, SJVN, ONGC, BHEL, and HAL, which are all headed by technocrats and management experts.
These companies have consistently delivered profits and technological advancements because they are run by professionals who understand the industry inside out.
SJVN – A Technocrat-Led Success Story
SJVN, headquartered in Shimla, is a perfect example. The company is led by engineers and power sector experts, allowing it to achieve remarkable efficiency and expansion in hydro and solar power.
Unlike HPPCL, where bureaucrats dictate decisions, SJVN has consistently increased profits and successfully diversified into new energy sectors.
NTPC & NHPC – Powering India with Experts at the Helm
NTPC and NHPC, both managed by technocrats, have been instrumental in ensuring India’s energy security.
Their leaders understand the complexities of power generation, regulatory compliance, and large-scale infrastructure development—areas where bureaucratic leadership often fails.
ONGC & BHEL – Global Competitiveness Through Expertise
ONGC, one of India’s leading oil and gas exploration companies, has consistently performed well under the leadership of industry experts.
Similarly, BHEL, which manufactures power equipment, is run by technocrats who ensure operational excellence and technological advancements.
The takeaway? When technocrats lead, PSUs thrive. When bureaucrats control them, they bleed losses.
A Call for Reform: Restore Power to the Experts
To reverse this decline, the government must:
1. Appoint Technocrats and Management Experts: Leadership roles in specialized sectors must go to those with the expertise to handle them.
2. Minimize Political Interference: PSUs must function based on economic viability, not political agendas.
3. Enforce Accountability and Transparency: Strict audits and disclosures are necessary to prevent corruption and inefficiency.
4. Reform PSU Structures: Instead of patchwork solutions like mergers, the focus should be on operational efficiency and fiscal discipline.
Himachal Pradesh is at a crossroads. Will the government continue to let bureaucrats run PSUs into the ground, or will it take bold steps to bring in professional leadership?
The fate of HPPCL and other public sector enterprises hangs in the balance.
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