Saurabh Mukherjee
Power sector employees and engineers across Uttar Pradesh are set to stage demonstrations at district headquarters on February 27 to oppose the privatisation of the electricity sector.
During the National Convention of Electricity Employees and Engineers, held on February 23 in Nagpur and organised by the Electricity Employees Federation of India (EEFI), the long-standing struggle of power sector employees in the state was discussed.
In a press release, EEFI expressed concerns over the increasing privatisation efforts in the power sector, particularly in Uttar Pradesh.
The organisation pointed out attempts to privatise Purvanchal Vidyut Vitaran Nigam Ltd. (PVVNL) and Dakshinanchal Vidyut Vitaran Nigam Ltd. (DVVNL), which they claim would jeopardize the livelihoods of 27,000 regular employees and engineers, along with 50,000 contract workers.
The Uttar Pradesh Vidyut Karmachari Sanyukt Sangharsh Samiti (VKSSS), a body representing the protesting employees, has announced a series of protests against the proposed privatisation of electricity distribution.
Employee leaders have raised serious concerns over the pre-bidding process for privatising power distribution companies in Purvanchal and Dakshinanchal. They alleged that while the pre-bid meeting was officially scheduled for January 23 at Shakti Bhawan in Lucknow, it was instead held secretly at the SLDC guest house.
According to them, three firms—PricewaterhouseCoopers, Ernst & Young, and Grant Thornton—participated in the pre-bid meeting. This has sparked allegations of conflict of interest, as these firms are already associated with the power corporation, raising doubts about transparency in the privatisation process.
Long-Standing Protests and Financial Losses
Electricity workers in Uttar Pradesh have been actively protesting these moves for the past three months, despite what EEFI described as "instigations and attacks" by the state administration.
The protesters have demanded an immediate cancellation of what they call an "irregular process" of appointing a transaction consultant for privatisation.
A joint meeting of all union central executive bodies has been scheduled for February 1 in the state capital to decide the next phase of agitation.
Union leaders accused the power corporation management of colluding with private firms and misleading the government. They have urged Chief Minister Yogi Adityanath to intervene and scrap the privatisation plan, warning that the move could damage the government's image and triple electricity tariffs for consumers.
The resistance stems partly from past experiences with privatisation. In April 2010, the Agra electricity supply system was handed over to Torrent Power under a privatisation agreement.
As per the deal, the Power Corporation was to supply electricity to the private company at Rs 4.36 per unit, even though the procurement cost stood at Rs 5.55 per unit. Over the last 14 years, this arrangement has reportedly led to a loss of Rs 2,434 crore, according to figures released by the VKSSS.
The state government has cited mounting losses as justification for privatising power distribution in two of the state's five DISCOMs (distribution companies). The total loss of these DISCOMs reportedly stands at Rs 1.1 lakh crore, though agitating employees argue that these figures are manipulated by the Uttar Pradesh Power Corporation Limited (UPPCL).
Concerns Over Private Companies' Performance
Protests have also emerged in Greater Noida, where employees have raised concerns about the Noida Power Company Limited's (NPCL) failure to establish its own power generation facility. Protesters argue that NPCL is unable to provide free electricity to farmers and struggles to meet the demands of new consumers, leading to widespread power supply issues.
While outright privatisation has been a long-standing concern for power employees fearing job losses, they are also opposing 50-50 public-private partnerships proposed by the state government.
According to employees, these partnerships disproportionately favour private entities, citing the example of DVVNL’s privatisation in Agra, which they claim resulted in financial setbacks for the government body.
With tensions escalating, the February 27 protests are expected to be a significant demonstration of opposition to the privatisation push in Uttar Pradesh’s power sector.
During the National Convention of Electricity Employees and Engineers, held on February 23 in Nagpur and organised by the Electricity Employees Federation of India (EEFI), the long-standing struggle of power sector employees in the state was discussed.
In a press release, EEFI expressed concerns over the increasing privatisation efforts in the power sector, particularly in Uttar Pradesh.
The organisation pointed out attempts to privatise Purvanchal Vidyut Vitaran Nigam Ltd. (PVVNL) and Dakshinanchal Vidyut Vitaran Nigam Ltd. (DVVNL), which they claim would jeopardize the livelihoods of 27,000 regular employees and engineers, along with 50,000 contract workers.
The Uttar Pradesh Vidyut Karmachari Sanyukt Sangharsh Samiti (VKSSS), a body representing the protesting employees, has announced a series of protests against the proposed privatisation of electricity distribution.
Employee leaders have raised serious concerns over the pre-bidding process for privatising power distribution companies in Purvanchal and Dakshinanchal. They alleged that while the pre-bid meeting was officially scheduled for January 23 at Shakti Bhawan in Lucknow, it was instead held secretly at the SLDC guest house.
According to them, three firms—PricewaterhouseCoopers, Ernst & Young, and Grant Thornton—participated in the pre-bid meeting. This has sparked allegations of conflict of interest, as these firms are already associated with the power corporation, raising doubts about transparency in the privatisation process.
Long-Standing Protests and Financial Losses
Electricity workers in Uttar Pradesh have been actively protesting these moves for the past three months, despite what EEFI described as "instigations and attacks" by the state administration.
The protesters have demanded an immediate cancellation of what they call an "irregular process" of appointing a transaction consultant for privatisation.
A joint meeting of all union central executive bodies has been scheduled for February 1 in the state capital to decide the next phase of agitation.
Union leaders accused the power corporation management of colluding with private firms and misleading the government. They have urged Chief Minister Yogi Adityanath to intervene and scrap the privatisation plan, warning that the move could damage the government's image and triple electricity tariffs for consumers.
The resistance stems partly from past experiences with privatisation. In April 2010, the Agra electricity supply system was handed over to Torrent Power under a privatisation agreement.
As per the deal, the Power Corporation was to supply electricity to the private company at Rs 4.36 per unit, even though the procurement cost stood at Rs 5.55 per unit. Over the last 14 years, this arrangement has reportedly led to a loss of Rs 2,434 crore, according to figures released by the VKSSS.
The state government has cited mounting losses as justification for privatising power distribution in two of the state's five DISCOMs (distribution companies). The total loss of these DISCOMs reportedly stands at Rs 1.1 lakh crore, though agitating employees argue that these figures are manipulated by the Uttar Pradesh Power Corporation Limited (UPPCL).
Concerns Over Private Companies' Performance
Protests have also emerged in Greater Noida, where employees have raised concerns about the Noida Power Company Limited's (NPCL) failure to establish its own power generation facility. Protesters argue that NPCL is unable to provide free electricity to farmers and struggles to meet the demands of new consumers, leading to widespread power supply issues.
While outright privatisation has been a long-standing concern for power employees fearing job losses, they are also opposing 50-50 public-private partnerships proposed by the state government.
According to employees, these partnerships disproportionately favour private entities, citing the example of DVVNL’s privatisation in Agra, which they claim resulted in financial setbacks for the government body.
With tensions escalating, the February 27 protests are expected to be a significant demonstration of opposition to the privatisation push in Uttar Pradesh’s power sector.
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