UP Power employees have threatened to proceed on indefinite strike if the process of privatization of power distribution divisions in seven districts was not rolled back by the state government.
Angry Power employees under the banner of `Power employee’s joint action committee’ on Wednesday staged a day -long demonstration at Shakti Bhawan -the headquarter of UP Power Corporation limited (UPPCl).
The UPPCl recently floated tenders to hand over work of power bill distribution, meter reading, revenue collection and installation, change of power meters to private companies — technically called Integrated Service Providers (ISPs) — in Etawah, Kannauj, Orai, Rae Bareli, Saharanpur, Mau and Ballia.
As per the tender, the process of award of contract to ISP has to be completed by March 28 and a letter of Intent (lOI) given to the ISP by that date.
Justifying the move, the UPPCl said that hiring of services of the ISP was planned to generate higher revenue in loss-making divisions of various districts. It will be initiated in divisions where power theft was rampant and causes subsequent revenue loss which is as high as 35 percent.
Power regulator UP State electricity Regulatory Commission has also directed the UPPCl to bring down line losses to 15 percent by the end of 2018-19.
Power employees have however adopted a confrontational stance and accused the government of introducing privatisation through back door to benefit select private companies.
Earlier this month, Energy minister Srikant Sharma had said in the Assembly that there was no plan to privatise electricity distribution. He had said that media reports about government planning to privatise power distribution system in certain areas was not correct.
Sharma had said, "What we are doing in certain loss-ridden circles/districts is that we are introducing integrated service provider scheme under which commercial activities like issuing electricity connections, raising bills and collecting dues will be outsourced.”
He clarifies that bill revision activity will not be outsourced and that incorrect bills, if any, would be revised by the executive engineers only. The minister maintained that there was nothing new about the scheme since many of commercial activities were already outsourced to various companies.
Power Corporation engineers, on the other hand, are not convinced by the government’s arguments and they suspect a bigger privatization move.
“We have asked the management to recall the tenders already floated for outsourcing in seven districts within a week. Failing this Power employees will go on strike,’’ said Convener of Power Employees Joint Action Committee, Shailendra Dube.
He said that the UPPCl on Wednesday held a pre-bid conference with prospective bidders for appointing the ISP in seven districts. He said that the tenders will be opened on March 5 and by March 28, power distribution in seven districts will be handed over to private companies.