The director-general of the newly formed Uttar Pradesh Outsource Service Corporation has denied requests from the state’s power utilities to be exempted from its regulatory framework, ensuring that the energy sector remains under a centralized outsourcing mechanism.
The decision brings the Uttar Pradesh Power Corporation Limited (UPPCL) and its various distribution companies (discoms) under the purview of the new body, a move intended to standardize contract management and service provisions across different government departments. The ruling follows a formal attempt by energy officials to maintain their independent handling of outsourced labor.
In a letter dated March 31, 2026, UPPCL Managing Director Pankaj Kumar requested an exemption under the Companies Act, 2013, arguing that the nature of electricity supply as an essential service required a more flexible, uninterrupted approach to manpower availability than a centralized system might allow.
The argument for operational autonomy
The UPPCL’s bid for autonomy was rooted in the logistical complexity of maintaining the state’s power grid. According to the request, 839 substations across the state are currently operated and maintained by outsourced personnel. Kumar emphasized that the real-time operational requirements and emergency nature of power distribution produce the sector uniquely vulnerable to procedural delays.
Currently, UPPCL manages nearly 78,000 outsourced workers. These employees are engaged through a centralized tendering process utilizing the Government e-Marketplace (GeM) portal, involving 149 distribution companies with contracts awarded at the mandal level. In Lucknow alone, approximately 3,000 outsourced staff members operate across 150 substations.
Energy officials expressed concern that shifting to the Uttar Pradesh Outsource Service Corporation’s framework could disrupt the timing of tender finalizations, which are often completed well in advance to ensure continuity of supply. Any administrative friction, they argued, could directly impact the reliability of electricity distribution and critical maintenance operate.
Centralization over exemption
Amrita Soni, director-general of the Uttar Pradesh Outsource Service Corporation, rejected the request for exemption. Soni stated that any deviation from the established framework of the new corporation would require prior approval from the chief minister.
The rejection signals a firm state policy to eliminate fragmented outsourcing practices. By bringing energy corporations into the fold, the government aims to create a uniform system for contract management, which officials believe will increase transparency and reduce the discrepancies in how different departments engage third-party labor.
Impact on the outsourced workforce
Whereas utility managers feared operational delays, employee representatives have reacted positively to the centralization. The UP Power Corporation Tender/Contract Employees Association described the move as a significant step toward protecting the interests of those working in the power sector.
Union leaders argue that the centralized system will curb inconsistencies in how contracts are handled and provide a more transparent structure for worker rights. Devendra Kumar Pandey, state general secretary of the association, noted that the decision strengthens the confidence of workers who have long struggled with stagnant wages amidst rising inflation.
The current pay scale for these workers highlights the economic pressure cited by the union:
| Staff Category | Monthly Salary |
|---|---|
| Untrained Staff | ₹9,600 |
| Trained Staff | ₹11,600 |
Pandey asserted that these figures are insufficient to meet basic living expenses, suggesting that the centralized corporation may provide better leverage for implementing uniform and fair service provisions.
Potential for industrial unrest
Despite the current welcome from the union, the association has issued a stern warning to the state’s power utilities. The union stated that if utilities attempt to bypass the framework or remain outside the centralized system, it would be viewed as a violation of the new policy direction.
The organization warned that such a scenario would lead to large-scale agitations to ensure the centralized outsourcing system is implemented in full spirit. This creates a precarious balance for UPPCL, which must now align its operational needs with the rigid requirements of the new state body while avoiding labor unrest.
The next phase of implementation will involve the transition of existing GeM-based contracts into the new corporate framework. Further updates on the transition timeline and any potential adjustments to wage structures are expected following the next administrative review by the state government.
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