AIPEF concerned over monopoly of private players in power sector
Punjab Newsline Network
Monday, 04 July 2011
LUKHNOW:The All India Power Engineers' Federation (AIPEF) has expressed its concern over state governments move to hand over most of the new power projects to private players leading to monopoly of private sector at the cost of state.Shaliender Dubey Secretary General AIPEF said in a statement that Uttar Pardesh and Punjab Governments have handed over most of the new projects to private players ignoring their states interests.
In Uttar Pardesh the state government has given 15677 MW capacity addition power projects to private players through MOU route and another 4600 MW projects through competitive bidding. The generosity has been shown to private players by state government whereas public sector has only been given 2000MW capacity projects. The public sector units announced includes two 500 MW units at Parichha, Harduaganj and one 1000 MW unit at Annapara –D.

Dubey further said in case of Punjab at the present power utility (PSPCL) is meeting 52% of the demand of its consumers from own generation and rest from central sector allocation and power purchase from private players. With the commissioning of new plants under private sector without any addition in generation under state sector, the share of own generation will go down to less than 19% .Engineers are demanding allocation of upcoming Mukerian thermal project in state sector to maintain some balance.
In case of Uttar Pardesh only 10 percent new capacity addition has been planned rest being bagged by private players.
The states will have to bear the consequences of this folly when the new private projects through MOU route will supply power to state at exorbitant rates. Dubey said that the state of affairs is alarming and may only lead to monopoly of the private concerns in the power sector. In this connection, the federation cited the order of the central electricity regulatory commission (CERC) asking the state government to allocate power projects through a competitive bidding procedure.