The Uttar Pradesh government is steadfast in its decision to privatise two power distribution companies (DISCOMs), despite opposition from employee unions. The proposal to hand over the Agra and Varanasi DISCOMs to private players under a 50:49 partnership model is set to receive Cabinet approval soon.
The energy task force (ETF), chaired by chief secretary Manoj Kumar Singh, cleared the proposal last week, paving the way for its next steps.
“The proposal will soon be presented to the Cabinet. Once approved, bidding documents will be submitted to the UP Electricity Regulatory Commission for final clearance, following which a transparent bidding process will be initiated to select private companies,” a senior Uttar Pradesh Power Corporation Limited (UPPCL) official said.
The privatisation plan has triggered widespread protests across the state, with employees staging demonstrations and warning of an intensified agitation if the government does not reverse its decision.
Shailendra Dubey, convenor of the U.P. Sanyukt Sangharsh Samiti, an umbrella body comprising 16 other groups of the state’s power employees and engineers, expressed concerns over potential job insecurity and higher electricity tariffs. “Privatisation could compromise the accountability of power distribution services. Previous experiments with privatisation, in U.P. and elsewhere, have not yielded the desired results,” he argued.
Despite the backlash, the government remains firm, asserting that privatisation is essential to modernise the power distribution network, improve efficiency, and reduce operational losses. Officials believe the move will ultimately benefit consumers by providing better services and a more reliable power supply.
{{/usCountry}}Despite the backlash, the government remains firm, asserting that privatisation is essential to modernise the power distribution network, improve efficiency, and reduce operational losses. Officials believe the move will ultimately benefit consumers by providing better services and a more reliable power supply.
{{/usCountry}}Interestingly, the state government has kept a low profile on the issue. Energy minister AK Sharma and other senior officials have refrained from public comments, leaving UPPCL to take charge of communication. The corporation has been issuing detailed statements, FAQs, and assurances to address employee concerns and clarify the plan’s benefits.