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Delhi govt to merge its power generation firms

Delhi govt to merge its power generation firms

Delhi government has decided to merge two of its power generation companies into a single unit to streamline operations. Delhi Chief Minister Sheila Dikshit said that to ensure better functioning of the generating unit, the Cabinet has decided to merge the Pragati Power Corporation (PPCL) into the Indraprastha Power Generation Company (IPGCL), thereby retaining the latterÂ’s name.

All the employees of PPCL will become employees of IPGCL and will be governed by the rules and policies of IPGCL, she said. The new company will also take up renewable energy activities and will facilitate setting up of 220 kv GIS sub-station at Rajghat. This will happen after de-commissioning of the Rajghat plant.

Dikshit said the merger of the two companies will bring about a reduction in administrative, statutory and legal compliances. There was no need to have two separate companies, when both were doing the same work, had the same employees and the same top management.

Hence the government decided to merge the companies as it would streamline the process of running operations and save the additional work like filing the income tax and audits for two companies, said an official concerned.

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