Power sector employees stage protest against privatisation of discoms

Protest meetings were held in all the states and union territories (Representational photo)

Power sector employees on Thursday held nationwide protests against the government's decision to privatize discoms, the All India Power Engineers Federation (AIPEF) said.

They also demanded withdrawal of Electricity (Amendment) Bill 2020 and scrapping of the standard bidding document (SBD).

"Lakhs of power sector employees including engineers, today held nationwide protests seeking the withdrawal of Electricity (Amendment) Bill 2020, scrapping of SBD and opposed the privatization of power distribution companies (discoms) in states and union territories," AIPEF spokesperson V K Gupta said in a statement.

Gupta said protest meetings were held in all the states and union territories, including Uttar Pradesh, Punjab, Haryana, Jammu & Kashmir, Maharashtra, Telangana, Tamil Nadu, West Bengal, Gujarat, Madhya Pradesh, Assam, among others.

He noted that the power engineers did not join Thursday's strike called by ten central trade unions and just staged a simple protest to highlight their issues.

Gupta claimed that the government is hell-bent on creating private monopolies in the power sector with the sole motive of helping corporate houses.

The SBD document proposes that discoms in all the states and union territories undertake privatization.

The state government will provide subsidised bulk power for the successor entity for making it an independently financially viable entity. The assets of discoms will be leased on a token payment.

The federation opposes the proposed transfer of public assets to the private sector as this will result in a high tariff for the consumers, he said.

The AIPEF also demanded withdrawal of the process of privatization of electricity in states and union territories and cancel all existing privatization and franchises in the power sector.

He claimed that the Centre is grossly misleading the public by saying that the electricity will be cheaper after privatization.

The private discoms are allowed to take a minimum of 16 per cent profit, which would increase the power tariff to almost Rs 10 per unit for consumers.

The central government was looking at abolishing the subsidy and cross-subsidy in the supply of electricity, which would make the commodity more expensive for the general consumer categories and cheaper for industrial consumers, the statement said.

The provisions in the draft Electricity Amendment Bill to allow private franchisees or sub-licensee will only lead to cherry-picking of remunerative areas affecting the financial viability of the discoms, it added.

Gupta noted that the privatization and urban distribution franchisee model have miserably failed in all the places.

Regarding direct benefit transfer of the subsidy to consumers, the state governments must have the freedom to adopt payment of subsidy as per their requirements, AIPEF said.

Privatization of electricity discom in Chandigarh has been opposed by the consumers and resident welfare associations as well as political parties.

Puducherry government has also strongly opposed privatization of electricity, it added.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel