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NEWSNOTES
Privatisation in Electricity sector opposed

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usm-red.gif (836 bytes)Privatisation in Electricity Sector Opposed
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he Electricity employees will oppose the Privatisation move by Govt. of India through country wide campaign and agitation.

From India News Network (INN)

 

The Electricity employees will oppose the Privatisation move by Govt. of India through country wide campaign and agitation. Even they will go for All India strike to resist the conspiracies. The Working Committee of EEFI met at Chennai 25-26 of December 1999 and took stock of the situation and considered the announcement of GOI for implementing the second stage of liberalisation policy. As part of it the government of India had decided to privatise the whole public sector at top speed. Besides they have decided to appoint the second labour commission to liberalise the labour laws and take away the hard-earned legal rights of working class. The terms of reference suggested is to change the labour laws taking into consideration the changes that have come world over liberalizing legal rights of the employees which tantamount to give full freedom to employers. In the matter of hire and fire without any legal constraint, i.e. to take away the security of job which is the fundamental right of the working class. Therefore the committee decided to co-ordinate our activities with CPSTU, Sponsoring Committee of Trade Unions and National Platform of Mass Organisation against the policy of privatisation. The working committee also took stock of the situations prevailing in the power sector in all the states. After detailed discussion the committee came to the following conclusions:

The new power policy implemented by GOI in opening up power sector to Indian and foreign IPPs could not raise the installed capacity as envisaged in the 8th and 9th plan. The private investors are delaying the project execution in order to pressurise the government demanding escrow agreements, counter guarantee etc. The decision taken by GOI not to make investment in the power sector also resulted in increasing power shortage. However in totality all the states are facing power shortage except a few.

Of late GOI has decided to privatise NPTC, PGCIL and NPC besides the privatisation of SEBs. NTPC is an entity which really make huge profit and its performance hither to was best. PGCIL, has been established with a view to transmit bulk power to different parts of the country from the generating zone. This corporation also was making profit and the formation of this corporation was an important step in the power sector. The availability of Energy resources like coal, Iignite and hydel potential are concentrated in few centres. The power generated at this centres could be transmitted in bulk through the transmission lines of power grid. Privatisation of Nuclear power generation is a ruinous step. We do not find any rational in privatising NPTC, PGCIL & NPC.

The experience of IPPs are that they are charging higher rates for the power produced which put the SEBs in financial difficulties. For example power is being sold to Maharashtra State Electricity Board by Enron at the rate Rs.4.98 per unit. In Tamilnadu CMR Vasavi is going to sell power at the rate of Rs.4.10 per unit. In Orissa the average selling power rate is coming to Rs.3.90 per unit. While the power rate before the restructuring was Rs.0.97 per unit. There it is found that the privatisation effort has not only deepened the crisis but also the rates of power have raised to unbearable level. This situation will adversely affect our industry, agriculture and total development.

Therefore EEFI Demand:

That GOI should retrace and withdraw the steps from privatisation of power sector.

GOI and the state governments should give increased allocation of funds for power development

Do not privatise NTPC, PGCIL & NPC

Give preference to National resources for power generation to the maximum possible extent.

GOI should step up hydel generation at least to a minimum of 40:60 which now only 24:76. Hydel generation should be taken up on war footing.

Every state should give preference for power generation with the available local resources and other cheaper fuel like LNG etc.

The Working Committee calls upon the electricity workers, engineers and other officers irrespective of their organisational affiliations to come together to fight back the offensive of privatisation, and to achieve the demands listed above. The working committee also decided go for a National Convention of all Electricity Employees and Engineers and Officers at Lucknow by early February after consulting all the organisations and chalk out a plan of agitation including All India Strike.





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