<\/p>\n
2.7 Million Power Employees and Engineers Will Be Forced to Launch a Nationwide Protest if backdoor privatisation through Parallel Distribution Licence Imposed: AIPEF<\/p>\n
New Delhi, July 25<\/p>\n
The All India Power Engineers Federation (AIPEF) has strongly opposed the proposal discussed by the Consultative Committee of the Ministry of Power regarding the grant of Parallel Distribution Licences, terming it backdoor privatisation of electricity distribution. AIPEF has warned that permitting private companies to use the distribution network created and maintained by public sector DISCOMs would amount to a betrayal of public utilities and would ultimately weaken and financially cripple State-owned electricity distribution companies.<\/p>\n
AIPEF Chairman\u00a0 Shailendra Dubey said that the statements issued by the Ministry of Power after the Consultative Committee meeting are misleading and are intended to justify a policy that primarily benefits private companies at the cost of public sector utilities and electricity consumers.<\/p>\n
The Ministry has claimed that the proposed framework will provide consumers with greater choice and improve the quality of electricity supply. However, the Ministry itself has clarified that the existing Government DISCOM will continue to own, operate, maintain and strengthen the entire distribution network.<\/p>\n
“If the ownership, operation, maintenance and upgradation of the network remain entirely with the Government DISCOM, how can the mere entry of a private billing company improve the quality of electricity supply? Service quality depends on the strength and reliability of the distribution network\u2014not on who issues the electricity bill. The claim of improved service is therefore misleading. The real objective is to allow private companies to earn profits by using public infrastructure built with public investment,”\u00a0 Dubey said.<\/p>\n
AIPEF also rejected the Ministry of Power’s reference to Mumbai as an example of successful parallel distribution licensing, describing it as factually incorrect and misleading.<\/p>\n
Dubey clarified that Mumbai is not a genuine example of parallel distribution licensing. Tata Power has been permitted to operate only in a limited and specifically notified area under judicial and regulatory arrangements where another private utility also operates. Adani Power cannot operate throughout Tata Power’s licensed area, nor can Maharashtra State Electricity Distribution Company Limited (MSEDCL\/Mahavitaran) operate in those areas. Likewise, Tata Power cannot freely operate across the entire areas served by the other licensees.<\/p>\n
“Therefore, Mumbai cannot be cited as an example where multiple licensees are freely competing over the same Government-owned distribution network as now proposed by the Ministry. The Ministry’s attempt to project Mumbai as a precedent for nationwide implementation of Parallel Distribution Licences is legally and factually incorrect,” he said.<\/p>\n
Dubey further pointed out that several crucial issues have been completely ignored by the Ministry.<\/p>\n
If any interruption in electricity supply occurs because of faults in the distribution network, the responsibility will continue to rest with the Government DISCOM that owns and operates the network. Will the private parallel licensee share this responsibility and the liabilities arising from such failures? The Ministry has offered no explanation.<\/p>\n
Similarly, existing DISCOMs have entered into long-term Power Purchase Agreements (PPAs), many extending up to 25 years, based on the demand of their consumers. If profitable consumers migrate to private licensees, who will bear the financial burden of these binding contractual commitments? The proposal is completely silent on this critical issue.<\/p>\n
Every year, public sector DISCOMs spend thousands of crores of rupees on operation and maintenance of the distribution system, network expansion, installation of transformers, switchgear, conductors and other infrastructure to meet increasing consumer demand. The proposal does not clarify whether private licensees using the same network will share these enormous costs.<\/p>\n
AIPEF has categorically rejected the proposal discussed by the Consultative Committee and demanded that the Ministry of Power should not proceed any further without holding comprehensive consultations with all stakeholders.<\/p>\n
“The biggest stakeholders in the electricity sector are consumers and power employees. Before taking any decision, the Ministry must hold meaningful consultations with employee and engineer federations, consumer organisations, State utilities and other stakeholders. No policy that fundamentally alters the structure of electricity distribution should be imposed without national consultation,”\u00a0 Dubey said.<\/p>\n
AIPEF warned that if the Government issues any order permitting private companies to use Government-owned distribution networks for commercial gain through Parallel Distribution Licences, the country’s 2.7 million power employees and engineers will have no alternative but to launch a nationwide protest movement. The Federation made it clear that the entire responsibility for any industrial unrest resulting from such unilateral decisions would rest with the Ministry of Power.<\/p>\n","protected":false},"excerpt":{"rendered":"
2.7 Million Power Employees and Engineers Will Be Forced to Launch a Nationwide Protest if backdoor privatisation through Parallel Distribution Licence Imposed: AIPEF New Delhi, July 25 The All India Power Engineers Federation (AIPEF) has strongly opposed the proposal discussed by the Consultative Committee of the Ministry of Power regarding the grant of Parallel …<\/p>\n","protected":false},"author":4,"featured_media":9167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30,92,3199,3201,33,1284,3200,91,3198,3202,59],"tags":[4187,4124],"class_list":["post-9166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-featured","category-haryana","category-himachal-pradesh","category-international","category-international-political-national","category-jammu-kashmir","category-national","category-punjab","category-uttar-pradesh","category-uttarakhand","tag-ravinder-singh-ghanghas-general-secretary-haryana-power-engineers-association-hpea","tag-shailendra-dubey-chairman-of-the-all-india-power-engineers-federation-aipef-vidyut-karmachari-sanyukt-sangharsh-samiti-up"],"yoast_head":"\n