Discussed VRS with PMO on July 18; no connection with transfer: S C Garg

NEW DELHI: Subhash Chandra Garg sought to refute speculation that he put in for early retirement because he’d been removed as finance secretary and reassigned as power secretary. Garg said he had discussed his retirement from the Indian Administrative Service (IAS) with the Prime Minister’s Office (PMO) on July 18 and submitted a formal application on July 24, the day the transfer order was issued.

He declined to say why he wanted to retire a year ahead of superannuation. “Let us rest that matter at that,” he said, declaring his thankfulness at being posted as power secretary and adding that he is “perfectly happy” to take up the role. He had not mentioned the July 18 discussion when he tweeted on Thursday that he had sought voluntary retirement and that he would retire by October 31.

“I must tell you that the proposal I would take VRS (voluntary retirement scheme) was discussed on July 18, much before the orders came. It has no connection with that (transfer),” he said on Friday evening. “I am in fact grateful to the prime minister and the system for posting me here in the power ministry, which is an extremely important infrastructure ministry. The dream of $10 trillion economy by 2030 expressed in the last budget speech and $5 trillion economy by 2024-25, which was expressed in this budget, will not be achieved unless power sector performs.”


The VRS process involves a three-month notice period with the final call taken by the state to which the officer is attached. Garg belongs to the Rajasthan cadre.

Plan for Power Sector
He took charge as power secretary in the morning after handing over charge of the finance ministry to Atanu Chakraborty on Thursday. Garg said living standards can’t improve unless power is available to everyone.

“This ministry not only is the policy making ministry for this extremely important sector but it is also overseeing several initiatives to expand the distribution network as well as make power reach every family in the country,” he said. “I am very grateful and perfectly happy to be here and do my best in the time I am here to strengthen the power sector.”

Gard told reporters that the posting of bureaucrats is the government’s prerogative and all secretary positions are equal.

On his priorities for the power ministry, Garg said some reforms recommended by the committee on stressed assets led by the cabinet secretary are yet to be implemented.

Private sector participation in power distribution needs to be encouraged, he said, adding that the July 5 budget had announced proposals to allow greater inflow of foreign direct investment (FDI), including foreign bonds in infrastructure.

Other issues such as improving the finances of the power sector, getting generation going and power purchase agreements (PPAs) being questioned in several states have to be addressed to bring stability to the sector, he said.

Garg’s departure from the finance ministry followed criticism of the July 5 budget over the enhanced surcharge on the super-rich and a proposal for overseas sovereign borrowings.