People's Democracy

  NCCEEE Cautions On Power Privatisation

THROUGH a statement issued from New Delhi, May 30, by its convenor B S Meel, the National Coordination Committee of Electricity Employees & Engineers (NCCEEE) has dubbed as “deplorable” the stress laid on unbundling of the state electricity boards (SEBs) by the prime minister Dr Manmohan Singh. Dr Singh had made a statement to this effect while addressing a conference of the energy secretaries from states in Shimla.

The NCCEEE also opined that the prime minister’s desire to discontinue free power to the needy agriculturists is suicidal and jeopardise the people’s food security. The NCCEEE pointed out that this was part of “hide and seek” policy the power ministry is playing despite the four rounds of discussion it had with the NCCEEE after the latter’s discussion with the prime minister on September 7 last year. The NCCEEE had at that time submitted to the prime minister a detailed memorandum in this regard.

It appears that, at the behest of the prime minister, the union power ministry under its secretary R V Shahi is pressing the reluctant state governments to end their state electricity boards and privatise them. The union has taken the stand that unless the states do so, they would be denied of funds to accelerate their power development programmes. The power ministry is thus ignoring the UPA’s Common Minimum Programme which includes the promise to review the Electricity Act 2003.

The experience of one and a half decades of implementation of neo-liberal policies in the power sector unequivocally show that it badly affects the availability, accessibility and affordability (because of repeated tariff shocks) of electricity to a majority of the Indian people. Under the Electricity Act 2003 that is the legal framework of these policies, power shortages are going to stay except for a few who may resort to luxuries. These policies also deteriorate and weaken the power service and infringe upon the rights of the state governments. Electricity being a basic infrastructure facility, this state of affairs is affecting the overall development of the country in a big way. The act provides for total privatisation of the power sector and subsequent shift to the market driven pricing of power, which again is disastrous for a vast majority of our people.

The NCCEEE statement also pointed that the neo-liberal policy in power sector is directed against the power employees, marginalising their role in the industry and curtailing their rights.

Recently, the Maharashtra government displayed undue haste in taking a decision to unbundle the Maharashtra state electricity board (MSEB), despite the fact that the power ministry had entered an agreement with the NCCEEE on May 17 last. According to that agreement, the unbundling of the SEBs was to be examined in the process of review of the act, on the basis of the our experience of unbundling since 1996. The NCCEEE termed the state government’s action as violative of the spirit behind the aforesaid agreement.

The NCCEEE statement wonders whether one is to presume that the government of India is in a hurry to safeguard the interest of big capitalists like the Ambanis and the Tatas, as is being done now in UP. The statement said the NCCEEE would oppose and fight back the neo-liberal logic in power sector tooth and nail. (INN)