The issue of the proposed privatisation of power distribution in Uttar Pradesh was raised vociferously in the Vidhan Parishad here on Wednesday with the Samajwadi Party (SP) members opposing it while energy minister AK Sharma recounted the benefits of privatisation.
Amid allegations by the Samajwadi Party members, the minister said that the SP’s real worry was organised power theft that was unlikely to continue under the private companies. He said there were certain areas in most cities where conducting raids was a tough task. The minister cited a recent example of Sambhal where half-a-dozen mosques were found collectively involved in power theft to the extent of 130 KW.
The SP members staged a walkout from the House, saying they were not satisfied with the minister’s reply. The chairman rejected the adjournment notice and referred the matter to the government for necessary action.
Earlier, Samajwadi Party members, including Lal Bihari Yadav, Ashutosh Sinha, Mukul Yadav and Shah Alam, raised concerns about anger among employees and the public over the proposed privatisation of the power sector. They alleged that the objective of privatisation was to benefit capitalists by selling the distribution companies’ valuable assets to them for a song.
They said the privatisation of the two discoms would lead to layoffs and the end of reservation system in both the companies after they are taken over by private firms. They said electricity would get costlier under private dispensation.
{{/usCountry}}They said the privatisation of the two discoms would lead to layoffs and the end of reservation system in both the companies after they are taken over by private firms. They said electricity would get costlier under private dispensation.
{{/usCountry}}Energy minister AK Sharma, in his reply, said that many details of the proposal were still to be out worked and a decision was to be taken by a competent authority. He, however, said that all the efforts in the past had failed to effect the desired results in the power sector. He said some out-of-the-box thinking needed to be done.
He emphasised that the idea was not privatisation but to enter into a partnership with private players under the PPP model.
The minister argued that the PPP model was introduced by the Manmohan Singh-led central government and had been functioning successfully to date. He stated, “If privatisation can ensure 24-hour electricity for consumers, what’s wrong with it?” He cited the successful implementation of this model in Agra and Noida. He further explained that this step was being taken to make the state a trillion-dollar economy and for the welfare of all.
He noted that electricity rates in Noida, managed by a private company, were 10% lower than the rest of the state, even without government subsidies. He also mentioned the positive outcomes of similar experiments on highways and bus terminals, asking why further efforts should not be made to improve things. He assured that the interests of government, contractual, and outsourced employees would be safeguarded, and the process was being carried out under the Chief Minister’s instructions.