Punjab Newsline
Haryana Engineers demand to scrap move to privatize power distribution
VINOD KUMAR GUPTA
Thursday, 10 December 2009
CHANDIGARH: The decision of Haryana Government to hand over the distribution of electricity in Gurgaon and Panipat to private parties has evoked strong reaction from Haryana Power Engineers Association which has demanded the move should be scrapped immediately.

Sumer Singh Yadav General Secretary of the Association said that the sole aim of Haryana Government is to give only the creamy urban areas to private parties and not to reduce the transmission losses as is being made out.

He further said that whereas the statement of objects and reasons of Electricity Act-2003 envisages the franchise system only in rural areas, practically the creamy high revenue cities mere being given on Distribution Franchise to private parties, which was not in order.

The giving of creamy areas to private companies is privatizing the profits and nationalizing the losses.

The official statement that the step would bring in efficiency in the private sector management without losing the ownership of assets is not based on facts. Franchisees are working with the sole aim of profit maximization that is detrimental to the interest of consumers is not correct. The franchisee will get all the assets of power utility without investing any thing and will garner only profits.

In case of Bhiwandi it was law and order problem and without any government support the revenue collection was not possible. There is no such problem at Panipat and Gurgaon. Indeed these are the areas where the power utility gets the maximum revenue.

The employees of power utility will become employee of the private company who controls the particular area, Yadav said.

HPEA demands that move to give Panipat and Gurgaon cities to private Distribution Franchise must be scrapped. The power engineers and workers of Haryana are holding a joint meeting on Saturday to discuss the issue threadbare.