People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


Vol. XXVIII

No. 37

September 12, 2004

Unions Discusses Power Policy With The PM

 

AN eight member delegation comprising of leaders of Akhil Bharatiya Vidyut Mazdoor Sangh, All India Federation of Electricity Employees, All India Federation of Power Diploma Engineers, All India Power Engineers Federation, National Working Group on Power Sector, All India Federation of Electricity  Employees and Electricity Employees Federation of India – representing the National Coordination Committee of Electricity Employees and Engineers (NCCOEEE) held a discussion with the prime minister on the power policy on September 7. The discussion with the prime minister went on for 45 minutes.

 

Since it has already been committed to review the Electricity Act 2003, as mentioned in the Common Minimum Programme of the UPA government, the delegation brought to the notice of the prime minister the experience of the privatisation in electricity industry for the last 15 years. They detailed how this privatisation has only brought disastrous consequences for the nation.  The power tariff which was an average of one rupee per unit has today risen to more than three rupees and the rate for industrial consumers in the country is highest in the world, barring Japan, which is not conducive to industrial development and is forcing the manufacturing sector to close down many units.

 

The employees delegation pointed out to the prime minister the dangerous effect the Electricity Act 2003 has on the rural sector. They have cited the examples of free power supply being given by many state governments and impressed upon the prime minister the necessity of continuing the subsidy on electricity in order to  develop and maintain the agricultural sector and also to ensure the food security of the country.

 

A memorandum submitted to the prime minister on this occasion, requested the government to stop unbundling of the state electricity boards and to keep the power sector firmly in the public sector domain till the Electricity Act 2003 is reviewed by the government. The experiences of entrusting distribution to the private sector in Orissa and Delhi have been highlighted by the delegation to prove how such a course would be a complete failure.

 

The delegation requested Dr Manmohan Singh to appoint a Joint Parliamentary Committee (JPC) to review the Electricity Act 2003. They stressed the JPC should have a short time-frame and till the JPC report is finalised for amending the Act, further unbundling of SEBs and corporatisation be held in abeyance.

 

The prime minister stated that the government has no immediate plans to privatise the power sector. He asked the delegation to meet the union power minister and discuss the issue in details with him. (INN)