Franchisee system in Haryana is being introduced to repay the loan

Posted On: 16-Jan-2010 By: Vinod Kumar Gupta Font Size:

Panipat: Haryana Power Engineers and Workers Joint Action Committee has alleged that the franchisee system in Haryana is being introduced as the power utilities does not have capacity to repay the loans. RS Dahiya President of Haryana Power Engineers Association was addressing a gathering of more than 1600 engineers and workers at Panipat. The protest demonstration was held at Panipat against state governments move to hand over the distribution system of Panipat and Gurgaon to private sector.

Dahiya said in the protest meeting that power utilities are misleading the state government about the factual position prevailing in these utilities. As on today the loan against the power utilities is 7099 crores and this will touch the figure of 10000 crores by June this year. The power utilities have no funds to repaythe loan and so are proposing privatizing of power sector. The money earned by way of franchisee system shall then be used to repay the loan, Dahiya alleged in the protest rally.

The protest rally at Gohana Road was attended by one thousand and six hundred workers and engineers drawn from all of constituent organisations of the Joint Action Committee viz Haryana Power Engineers Association, Thermal engineers ,HSEB Workers’ Union & All Haryana Power Corporation Workers’ Union.

Dahiya further said there is shortage of 52 percent staff in power utilities as only 48 percent staff is available to do the work. In case the work is handed over to a franchisee the private company has the option to bring back his own employees and will harm the interest of present employees. He further alleged that money is being spent on non productive works.

R S Dahiya said that commercial as well as line Losses in Discoms are increasing due to privatising-outsourcing-contracting policies of state govt. They said that despite of 52% shortage of staff,engineers and workers of power utilities have worked for almost 12 to 14 hours per day for reducing the line losses to a considerable extent.

He said if vacant posts are filled, privatising-outsourcing-contracting policies are dumped and suggestions of the committee are implemented, the AT&C losses can be reduced considerably and better services can be provided to the consumers in the state.

Various other speakers said that 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 in the country are working with the sole aim of profit maximization and this is detrimental to the interest of consumers. Thefranchisee will get all the assets of power utility without investing any thing and will garner only profits.

HPEA demands that move to give Panipat and Gurgaon cities to private Distribution Franchise must be discussed with all the stake holders before taking a final decision and Government should not listen to one sided views of the management.