People's Democracy

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


Vol. XXIX

No. 02

January 09, 2005

ASSAM

Growing Protest Against Unbundling Of SEB

 Isfaqur Rahman

 

IGNORING increasing protests and resistance from the power sector workers and employees, the Assam state government has notified the unbundling of the Assam State Electricity Board (ASEB), in its bid to “reform” the power sector. The Board employees and various political parties and organisations, including the CPI(M), opposed the present approach towards “reforms” and threatened to intensify protest actions.

 

As part of the reform process, initiated under the Electricity Act, 2003, the state government is setting up five independent public sector companies for generation, transmission-transformation and distribution. From now on, a generation company – Assam Power Generation Company Ltd; a transmission and transformation company – Assam Electricity Grid Corporation Ltd; and three distribution companies – Lower Assam, Central Assam and Upper Assam Distribution Companies with well demarcated jurisdiction – will perform the activities of the erstwhile ASEB.

 

The decision for undertaking these so-called reforms and break-up of the ASEB was taken in 2001 and the Assam government had inked an agreement with the central government on this count when the BJP-led NDA was in power. In the MoU signed in 2001, the Congress government in Assam committed itself to reforms in the power sector. The Tarun Gogoi government subsequently pushed through the Assam Electricity Bill, 2003 in the state assembly but failed to convince the employees' unions about the necessity of the move.

 

The Assam branch of the National Co-ordination Committee of Electricity Employees and Engineers has registered its strong protest against the restructuring plan that has split the ASEB into five independent companies. The co-ordination committee has organised a series of protest actions including “pen-down-tools-down strike”, and “24-hour general strike” since the proposal was made public in the first week of December. The agitation of the huge majority of the ASEB employees numbering around 15,000 is being intensified against the government move.

 

The co-ordination committee has presented alternative proposals for genuine reforms and the efficient functioning of the ASEB and made it clear that they would not budge from their three-point charter of demands. The employees' unions fear that the ASEB will lose the status of a public sector unit if it is unbundled. It also charged the state government of dismantling the Board as a prelude to privatisation and in order to grab loans from the Asian Development Bank (ADB). It is also reported that the UPA government at the centre, too, had been insisting on introduction of these “reforms” by December 9. It needs mention that there are 18 unions and associations in the erstwhile ASEB with total membership strength of around 16,000.

 

CPI(M) DEMANDS

 

The Assam state committee of the CPI(M) has strongly protested the unbundling of the ASEB. In a statement issued to the press, Party state secretary, Hemen Das said “The Common Minimum Programme (CMP) has clearly stated that the Electricity Bill, 2003 would be reviewed. However, the Congress-led UPA government at the centre and the state Congress government have hastily implemented the draconian Act in Assam and violated the CMP.”

 

The CPI(M) termed the government action as anti-employee, anti-people and anti-development. It felt this will only pave the way for privatisation of the power sector in the state. While condemning the decision, the CPI(M) demanded the government to immediately retrace from its steps.  The Party also demanded to make public the conditionalties of the Rs 1200 crore ADB loan. It further warned that such violation of the CMP proposals would not be tolerated.