- (1.) By an order made on 13th January, 1998, a high powered committee came to be appointed to carry out investigations into five areas, as indicated in the order. The high powered committee was initially headed by Shri S. Venkatnarayanan (Ias) Retd. , former Cairman, National Power Finance Corporation, who was substituted later on by Shri P. K. Kaul, former cabinet secretary of the government of india. The high powered committee (hereinafter referred to as the "kaul committee") , with the expert advice and assistance of m/s central power research institute, bangalore and Indian Institute of Management, Lucknow, made an indepth investigation into the areas of reference and produced a report in two volumes.
(2.) One of the issues on which the kaul committee had adversely commented is that transfers and postings of officers and staff are not made in the state electricity board in a transparent and accountable manner. Although, guidelines for transfer policy of officers of the state government (see at page 495 volume ia of the paper book) , are supposed to be the transfer policy of such officers of the board also, they have been observed in breach. The state government has power under the Electricity Act to issue directives in the nature of policy directives, but with board's chairman and top executive heads packed by political boses, the state government appears to be exercising unbridled power of interference in the day to day working of the electricity board. This interference in transfers and postings with political patronage has totally destroyed the autonomous nature of the electricity board, which has been identified as a serious malaise affecting the functioning of the electricity board.
(3.) The original electricity board has now been split into u. p. Power corporation limited (for distribution and transmission) , with five subsidiary distribution companies, namely, kanpur electric supply company limited (kesco) , purvanchal vidyut vitaran nigam limited, varanasi, madyanchal vidyut vitaran nigam limited, lucknow, paschimanchal vidyut vitaran nigam limited, meerut and dakshinanchal vidyut vitaran nigam limited, agra. Thermal generation is entrusted to u. p. Rajya vidyut utpadan nigam limited and hydro generation to u. p. Jal vidyut nigam limited. All these companies are government companies, though under the provisions of the electricity act, yet independent bodies subject only to the directives of the state government only on matters of general policy.;