The director-general of the newly formed Uttar Pradesh Outsource Service Corporation has declined to grant exemptions to the state’s power utilities from its provisions.
Uttar Pradesh Power Corporation Limited (UPPCL) and other state distribution companies (discoms) had sought permission to continue managing outsourcing contracts independently under existing arrangements.
The managing director of UPPCL had written to the director-general of the Uttar Pradesh Outsource Service Corporation requesting that power utilities be exempted from the newly introduced outsourcing framework on March 31, 2026. The exemption was sought under Section 8 of the Companies Act-213.
In his letter, UPPCL managing director Pankaj Kumar had pointed out that under its various subsidiaries, including power distribution and generation units, 839 substations are being operated and maintained through outsourced personnel. He argued that electricity supply falls under essential services and requires uninterrupted manpower availability to meet emergency and real-time operational requirements.
The UPPCL has nearly 78,000 outsourced workers currently engaged across its operations in the state. These workers are deployed through a centralised tendering process conducted via the GeM portal, involving 149 distribution companies, with contracts awarded at the mandal level.
In Lucknow, around 3,000 outsourced employees are working across 150 substations.
The letter said that to ensure continuity and reliability of power supply, tenders often need to be finalised well in advance. Any disruption or procedural delay due to implementation of new outsourcing provisions could adversely impact electricity distribution and maintenance work.
In response, Amrita Soni, director-general, Uttar Pradesh Outsource Service Corporation, rejected the request, stating that any deviation from the framework of the newly created corporation would require prior approval from the chief minister.
The decision effectively brings the state’s energy corporations under the purview of the centralised outsourcing mechanism, ensuring uniformity in contract management and service provisions across departments.
Employee body welcomes move
The UP Power Corporation Tender/Contract Employees Association has welcomed the decision, describing it as a “significant step” in protecting the interests of outsourced employees working in the power sector.
Union leaders said the move would ensure greater transparency and consistency in outsourcing practices across UPPCL and other energy distribution companies.
Devendra Kumar Pandey, state general secretary of the association, said the decision strengthens confidence among outsourced workers and ensures uniform implementation of service provisions. The untrained staff is getting just ₹9,600 per month and trained staff is getting just ₹11,600 which is not enough to meet expenses in times of inflation.
However, the union cautioned that if power utilities are still kept outside the framework of the Uttar Pradesh Outsource Service Corporation, it would be treated as a violation of the new policy direction.
It warned that in such a scenario, the organisation would launch a large-scale agitation to press for implementation of the centralised outsourcing system in full spirit.
