The Uttar Pradesh government has banned strike by the employees of the UP Power Corporation Limited (UPPCL) and its five wholly owned subsidiaries for the next six months.
The order banning the strike shall apply on employees of all government departments and public sector undertakings. The order has been issued under the provisions of the Essential Services Maintenance Act (ESMA).
The Board of Directors of the UPPCL on Thursday approved the Request for Proposal (RFP) proposal for handing over two subsidiaries of UPPCL in south and east UP on a public-private partnership model to the private sector.
The proposal was also approved by the Energy Task Force headed by states Chief Secretary Manoj Kumar Singh on Thursday. The RFP has been sent to the government for approval by the state cabinet. As soon as the cabinet grants its approval the RFP will be submitted to the UP State Electricity Regulatory Commission for regulatory approval.
The power employees have threatened to go on strike over the privatisation of two subsidiaries of UPPCL of South and East UP —the Dakshinanchal and Purvanchal power distribution corporations.
As per the PPP model, the private companies taking over the discoms will not be given ownership of the land. The ownership of the land will remain with the UPPCL, the wholly owned PSU of the UP government. UPPCL has also clarified that there will be no retrenchment of existing employees and their service condition will also be protected.
Meanwhile, power employees and engineers across the country have been mobilised against the decision of privatisation of electricity in UP.
After several failed attempts over the last two decades, the Uttar Pradesh government is making a renewed push to privatise its “loss-making” power distribution companies.
This time, however, the plan, it is believed, is more likely to succeed — not just due to strategic reform proposals, but also because trade union leaders, a major source of resistance, are constrained by a pending public interest litigation (PIL) petition in the Allahabad High Court.
In March 2023, the Allahabad High Court had directed the state government to withhold one-month salary/pension of 28 office-bearers of Vidyut Karmchari Sanyukt Sangharsh Samiti which had called for a strike in February.
The high court had passed the order in 2023 while hearing a PIL, after power employees went on strike. The court cautioned power employees to remain mindful of any such act (strike) in future that may force the court to take stern action against all those involved.
“Repeat actions will invite consequences in law,” the court had warned. Earlier, on March 17, the same court initiated contempt proceedings against power employees’ union leaders and issued bailable warrants against them for going on strike despite a previous order of the court for not disrupting the power supply.