Lucknow A delegation from the All India Power Engineers Federation (AIPEF) met Union power minister Manohar Lal Khattar in Delhi on Thursday to present a memorandum outlining their concerns and demands. The Federation emphasized that in the larger interest of the power sector and its consumers, the proposed Electricity (Amendment) Bill should be shelved and the unsuccessful privatization initiatives should be rolled back.
The delegation, led by Federation chairman Shailendra Dubey highlighted the Federation’s stance against the Electricity (Amendment) Bill, which aims to grant licenses to private entities for electricity distribution, allowing them to utilize the infrastructure of public sector distribution companies.
Citing failed privatization experiments in states like Maharashtra, Madhya Pradesh, Uttar Pradesh, Bihar and Orissa, the Federation stressed the need to withdraw such initiatives. It pointed out that the urban distribution franchise model had been largely unsuccessful, with most agreements being annulled. The complete privatization of Orissa’s electricity distribution sector by Reliance Power, which failed and led to the cancellation of licenses in 2015, was highlighted as a significant example. Despite this, the sector was handed over to Tata Power in 2020 without notable improvement.
The Federation argued that private companies would selectively supply electricity to profitable industrial and commercial customers, neglecting residential and agricultural consumers, thereby exacerbating the financial instability of government-run distribution companies. This, the Federation asserted, would not benefit the power sector or the economically disadvantaged consumers.
{{/usCountry}}The Federation argued that private companies would selectively supply electricity to profitable industrial and commercial customers, neglecting residential and agricultural consumers, thereby exacerbating the financial instability of government-run distribution companies. This, the Federation asserted, would not benefit the power sector or the economically disadvantaged consumers.
{{/usCountry}}Additionally, the Federation addressed the issue of mandatory coal imports. Despite Coal India Limited’s claims of increasing coal production and sufficient domestic coal availability, the power ministry directive to import 4% coal till October 2024 was questioned. The Federation demanded the withdrawal of this order, advocating self-reliance in coal supply for thermal power plants.
To ensure cost-effective power supply to consumers, the Federation called for strengthening state generation companies and re-evaluating expensive long-term power purchase agreements with private entities.
The Federation urged the Union power minister to appoint qualified power engineers to top management positions in power corporations to enhance efficiency and self-reliance in the power sector.