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Public sector undertakings and utilities

DPDP for the Board director in PSUs and utilities

As a board director, you oversee risk in an organisation that serves the public at scale.

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What is different here

Independent directors in PSUs often chair risk or audit committees; data protection fits naturally there.

The first four things to sort out

  1. Ask which activities rely on State provisions.
  2. Ask for partner data terms coverage.
  3. Ask when the incident plan was rehearsed.
  4. Ask for quarterly reporting.

A worked example: The risk committee asks about State provisions

  1. BeforeLegal circulates a two-page note on which activities rely on State provisions.
  2. MeetingA director asks why consumer marketing is listed; it is removed.
  3. Good answerOnly narrow public functions rely on State provisions; consumer work follows full duties.
  4. AfterThe note is approved.

Evidence kept: Legal note; Minutes.

Write the legal view down and keep it narrow.

What others in the sector usually do. Risk committees in listed PSUs are adding data protection to the quarterly agenda.

Where it usually goes wrong, by organisation type

Organisation typeHotspots
Oil and gas marketingDistributor registers and delivery slips with addresses; Subsidy and Aadhaar data in distributor software; Consumer numbers shared with marketing partners
Power generation and transmissionContract labour gate passes and biometrics; PSU hospital records of employees and families; Township allotment and resident records
Electricity distribution (state discoms)Smart-meter data held by the meter vendor; Billing files shared with collection agencies; Consumer lists exposed on public bill lookup pages
Transport undertakings (rail PSUs, metro, state road transport)Passenger lists and reservation charts; Concession passes with ID copies; CCTV and travel-card data
Steel, mining, defence production and heavy industryMedical surveillance records of workers; Township and school records; Resettlement and compensation records of affected families
State development corporations and boardsLottery and allotment lists published with full details; Ration and supply records; Old paper files in record rooms

What a good answer from management sounds like

Question to askA good answer sounds likeEffort and time
Is our PSU 'the State' under DPDP, and what changes if it is?“We have a board-approved note. Only narrow public functions rely on State provisions; everything else follows full duties.”Light · 3 to 6 weeks
What about distributors, dealers and franchisees?“All partners sign the data clause, see masked data, and a sample is checked each year.”Medium · 3 to 6 months for a large network
What should the board of directors ask management about DPDP?“DPDP is a standing quarterly item. Management brings a short note with names, numbers and evidence.”Light · one agenda item every quarter
Do we need a DPO?“We have named an accountable person with a deputy, published the contact, and that person reports to management every month.”Light · 2 to 4 weeks
Something has gone wrong. What happens in the first 72 hours?“We have one plan that meets every clock. It was rehearsed this year, and the next rehearsal date is fixed.”Medium · 4 to 8 weeks, then a yearly drill
What must a vendor contract say about personal data?“Our top vendors have data terms with a short incident-notice time, and we review them every year.”Medium · 8 to 16 weeks for the top vendors
Could we be a Significant Data Fiduciary?“We have estimated our exposure. If we are notified, we can appoint a DPO and an auditor within weeks, because the groundwork is done.”Medium if you are a likely candidate
How much effort and time will it take to be ready by 13 May 2027?“We have a dated plan with named owners. Each month we see evidence, not just colours, and we expect to finish before March 2027.”Programme · six to nine months

8 guides for the Board director, in full

Is our PSU 'the State' under DPDP, and what changes if it is?

Short answer: Possibly, for some activities; get a written legal view

The DPDP Act uses the Article 12 meaning of 'State'. Many PSUs have been treated as the State by courts, depending on how deeply the government controls them. If you are, Section 7(b) and 7(c) and Section 17(4) may apply to public functions, but not automatically to commercial customer-facing work. Write an activity-wise legal view and keep the State provisions narrow.

From your seat: Board director. Ask to see the note.
What the law says

Section 2(x) defines State by reference to Article 12. Sections 7(b), 7(c) and 17(4) apply to the State. Section 7 · Section 8(7) · Rule 8

What a good answer from management sounds like: “We have a board-approved note. Only narrow public functions rely on State provisions; everything else follows full duties.”
Effort and time: Light · 3 to 6 weeks.
Steps
  1. List activities: public functions, schemes, commercial sales.
  2. Get a legal view for each.
  3. Apply full duties where unsure.
  4. Record the view and get board approval.
  5. Review if courts or MeitY clarify.
Evidence to keep
  • Legal note
  • Board approval
Common mistakes
  • Claiming State status for marketing
  • No written view
  • Assuming exemption from security
Related questions

What about distributors, dealers and franchisees?

Short answer: Yes, you are responsible for what they do with your consumers' data

When distributors, dealers or franchisees handle consumer data for your service, they act for you, and you are responsible. Give them only what they need, add a data clause to agreements, train them, and check a sample every year. If a partner uses data for its own business, such as selling insurance, that is outside your purpose and must stop.

What the law says

Section 8(1) and 8(2) cover processors. Section 8(1)–(2) · Section 8(5) · Rule 6 · Section 6

What a good answer from management sounds like: “All partners sign the data clause, see masked data, and a sample is checked each year.”
Effort and time: Medium · 3 to 6 months for a large network.
Steps
  1. List partner types and numbers.
  2. Issue a standard data clause.
  3. Give masked views where possible.
  4. Train partners.
  5. Check samples yearly.
Evidence to keep
  • Partner list
  • Signed clauses
  • Training and check records
Common mistakes
  • Full consumer exports to partners
  • No clause
  • No checks
Related questions

What should the board of directors ask management about DPDP?

Short answer: Five plain questions, asked every quarter

Directors do not need technical detail. They need to know who is accountable, how the organisation would handle a breach, which outside parties hold data, and whether the plan to May 2027 is on track with evidence.

From your seat: Board director. Ask the five questions every quarter, and record the answers in the minutes. The answers will improve when management knows the questions are coming.
In PSUs and utilities

Ask about partner coverage and the State-provisions note.

What the law says

The Act places duties on the Data Fiduciary, the organisation itself. Directors oversee whether management has put those duties into practice. Section 8(1)–(2) · Section 8(6) · Rule 7 · Section 10 · Rule 13

What a good answer from management sounds like: “DPDP is a standing quarterly item. Management brings a short note with names, numbers and evidence.”
Effort and time: Light · one agenda item every quarter.
Steps
  1. Ask who is accountable for personal data, by name.
  2. Ask when the breach plan was last rehearsed and what was learnt.
  3. Ask for the list of vendors holding the most personal data.
  4. Ask how many requests and complaints came in, and how fast they were answered.
  5. Ask for the plan to May 2027 with evidence, not colours.
Evidence to keep
  • Quarterly note to the board
  • Minutes showing the questions asked
  • Management responses
Common mistakes
  • Discussing DPDP once and then never again
  • Accepting 'IT is handling it'
  • No date for the breach rehearsal
Related questions

Do we need a DPO?

Short answer: Not required by law unless notified as an SDF, but name one person

Only a Significant Data Fiduciary must appoint a DPO, based in India. Every other organisation must publish the contact of a person who can answer questions about personal data. In practice, most organisations of any size name one accountable person anyway, because someone has to own requests, complaints and breaches.

From your seat: Board director. Ask who the accountable person is, what authority they have, and when they last reported to the board or a committee.
In PSUs and utilities

Name a DPO at senior level across units.

What the law says

Section 8(9) and Rule 9 require a published contact person for every Data Fiduciary. Section 10 requires a DPO in India for Significant Data Fiduciaries. Section 8(9)–(10) · Rules 9, 14 · Section 10 · Rule 13

What a good answer from management sounds like: “We have named an accountable person with a deputy, published the contact, and that person reports to management every month.”
Effort and time: Light · 2 to 4 weeks.
Steps
  1. Name one accountable person, with a deputy.
  2. Publish the contact on your website, app and notices.
  3. Give the role time, a budget line and a route to management.
  4. Set a short monthly report: requests, complaints, incidents, actions.
  5. Review the role if you are notified as an SDF.
Evidence to keep
  • Appointment letter
  • Published contact
  • Monthly report
Common mistakes
  • Giving the job to IT as a side task
  • A contact email nobody reads
  • No authority to make changes
Related questions

Something has gone wrong. What happens in the first 72 hours?

Short answer: Six hours for CERT-In; without delay for people and the Board; 72 hours for the detailed report

Contain it, then tell people. A reportable cyber incident goes to CERT-In within six hours of being noticed. Under DPDP, each affected person and the Data Protection Board must be told without delay, and the Board needs a detailed report within 72 hours. Sector regulators may have their own clock too.

From your seat: Board director. Ask when the plan was last rehearsed, who took part, and what went wrong in the drill. A drill with no findings was probably too easy.
In PSUs and utilities

A leaked consumer list from a distributor is your breach to report.

What the law says

Section 8(6) and Rule 7 set the DPDP steps. The CERT-In Directions of 28 April 2022 set the six-hour report. A breach includes accidental disclosure and loss of access, not only hacking. Section 8(6) · Rule 7 · Section 8(5) · Rule 6

What a good answer from management sounds like: “We have one plan that meets every clock. It was rehearsed this year, and the next rehearsal date is fixed.”
Effort and time: Medium · 4 to 8 weeks, then a yearly drill.
Steps
  1. Name one incident lead and a back-up, with phone numbers that work at night.
  2. Write the first-hour steps: isolate, preserve logs, tell the DPO and the incident lead.
  3. Keep ready-made drafts for CERT-In, the regulator, the Board and affected people.
  4. Decide in advance who signs off each message.
  5. Rehearse once a year with the people who would actually be called.
Evidence to keep
  • Incident plan with clocks
  • Rehearsal record
  • Incident log with times of each step
Common mistakes
  • Waiting to finish the investigation before telling anyone
  • Treating a wrong email or a lost laptop as 'not a breach'
  • Only IT knowing the plan
Related questions

What must a vendor contract say about personal data?

Short answer: Yes, every vendor that touches personal data

You stay responsible for what your vendors do with personal data. The contract should say what data they get, for what purpose, the security they must keep, how fast they must tell you about an incident, that sub-contractors need your approval, and how data is returned or deleted at the end.

From your seat: Board director. Ask which three vendors hold the most personal data, and when their contracts were last reviewed.
In PSUs and utilities

Distributors, franchisees, meter vendors, ticketing vendors and labour contractors.

What the law says

Section 8(1) keeps responsibility with you. Section 8(2) allows a processor only under a valid contract. Rule 6 asks for security terms in that contract. Section 8(1)–(2) · Section 8(5) · Rule 6 · Section 8(6) · Rule 7 · Section 8(7) · Rule 8

What a good answer from management sounds like: “Our top vendors have data terms with a short incident-notice time, and we review them every year.”
Effort and time: Medium · 8 to 16 weeks for the top vendors.
Steps
  1. List vendors who receive or can see personal data.
  2. Rank them by how much and how sensitive.
  3. Add a data-protection schedule to each contract, starting with the top ten.
  4. Ask for evidence: certificates, test results, deletion confirmations.
  5. Review the top vendors every year.
Evidence to keep
  • Vendor register
  • Signed data-protection schedules
  • Annual review notes
Common mistakes
  • Relying on the vendor's standard terms
  • No incident-notice time
  • No exit and deletion clause
Related questions

Could we be a Significant Data Fiduciary?

Short answer: Only by notification; none notified yet

Only the government can notify an organisation or a class of organisations as a Significant Data Fiduciary, based on the volume and sensitivity of data and the risk to people or the State. None had been notified when this page was last reviewed. Large holders of sensitive data should plan as if it could happen.

From your seat: Board director. Ask whether management has assessed the chance of notification. Large or sensitive data holders should have a view.
In PSUs and utilities

Large consumer-facing PSUs are natural candidates.

What the law says

Section 10 and Rule 13 set the extra duties: a DPO in India, an independent data auditor, a yearly Data Protection Impact Assessment and audit, and checks on algorithms. Rule 13(4) allows the government to restrict some data from leaving India. Section 10 · Rule 13 · Section 16 · Rule 15

What a good answer from management sounds like: “We have estimated our exposure. If we are notified, we can appoint a DPO and an auditor within weeks, because the groundwork is done.”
Effort and time: Medium if you are a likely candidate.
Steps
  1. Estimate how many people's data you hold and how sensitive it is.
  2. Note any public or security role your data plays.
  3. If you are a likely candidate, run a trial impact assessment this year.
  4. Identify an auditor you could appoint.
  5. Watch MeitY notifications.
Evidence to keep
  • Volume and sensitivity note
  • Trial impact assessment
  • Board note
Common mistakes
  • Assuming 'not notified' means 'never'
  • Waiting for notification to start
  • Thinking only tech companies will be notified
Related questions

How much effort and time will it take to be ready by 13 May 2027?

Short answer: Six to nine months of steady work for most

For most organisations it is a programme of six to nine months, not a single project. The heavy parts are the data inventory, vendor contracts, access control and the request process. Notices, the contact person and training are lighter. Starting now leaves time to fix what you find.

From your seat: Board director. Ask for evidence against the plan, such as signed contracts, rehearsal reports and request logs, not just status colours.
In PSUs and utilities

The partner network takes the longest.

What the law says

Most duties under the DPDP Rules start on 13 May 2027. Section 8(5) · Rule 6 · Section 8(1)–(2) · Sections 11–14 · Rule 14

What a good answer from management sounds like: “We have a dated plan with named owners. Each month we see evidence, not just colours, and we expect to finish before March 2027.”
Effort and time: Programme · six to nine months.
Steps
  1. Month 1: name the owner, set a budget line, start the inventory.
  2. Months 2 to 3: notices, consent records, contact person, request register.
  3. Months 3 to 6: vendor contracts, access control, logs, retention schedule.
  4. Months 6 to 8: breach rehearsal, training, internal review.
  5. Month 9: management review with evidence.
Evidence to keep
  • Programme plan with owners
  • Monthly status with evidence
  • Management minutes
Common mistakes
  • Leaving it to the last quarter
  • Buying a tool before knowing the gaps
  • Status colours with no evidence behind them
Related questions

Practical examples

Notice wording, request log, retention schedule, vendor clause and breach notice for public sector undertakings and utilities.

The sections you will use most

Other rules that sit alongside DPDP

RuleWhat it saysWhat it means alongside DPDPSource
DPDP Act, Section 2(x) and Article 12 of the ConstitutionThe Act defines 'State' with the meaning in Article 12. Many PSUs have been treated as 'the State' by courts, depending on government control.Get a legal view on which activities can rely on Section 7(b), 7(c) and 17(4). Customer-facing commercial work usually follows full duties.MeitY
CERT-In Directions, 2022Report specified cyber incidents within six hours; keep ICT logs 180 days in India.Applies to every PSU.CERT-In
IT Act, Section 70 and NCIIPCSystems notified as protected systems come under NCIIPC's critical information infrastructure framework.Plant control, grid and pipeline systems may be notified; personal data in them follows DPDP too.NCIIPC
CEA (Cyber Security in Power Sector) Guidelines, 2021Cyber security requirements for power sector utilities, including incident reporting and supply chain controls.Power PSUs and discoms can use this evidence for DPDP Rule 6.Central Electricity Authority
Aadhaar Act, 2016Aadhaar-linked subsidies such as LPG must store Aadhaar numbers securely and limit sharing.Distributor systems and counters must not keep Aadhaar copies.UIDAI
Labour Codes (in force from 21 November 2025)Registers for workers and contract labour, health and safety records for hazardous work.Set retention for worker and contract labour records against the codes and state rules.Ministry of Labour
SEBI LODR Regulations (listed PSUs)Listed PSUs follow disclosure and governance rules.Board-level reporting on data protection fits into existing risk committee work.SEBI
RTI Act, Section 8(1)(j) as amendedPersonal information is exempt from RTI disclosure since 13 November 2025.PSU CPIOs should apply the new wording with reasoned orders.SFLC.in summary
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