Privatisation Move: Another power cut likely in Chandigarh as dept staff to observe 72-hr strike

V K Gupta spokesperson of All India Power Engineers Federation (AIPEF) said that the privatisation of union territories “is just a preamble of government policy to privatise the state electricity boards”.

“The annual turnover of the department is more than Rs 1,000 crores and the market value of its total assets is Rs 20,000–25,000 crores. The department is being sold for Rs 871 crores despite making a profit of over Rs 1,000 crores in the last 5 years. There is no justification for the privatisation of the electricity department.

Section 133 of the Electricity Act 2003 makes it compulsory that under the favourable transfer scheme, the service conditions of employees and staff must not be less favourable,” VK Gupta stated.

The employees stated, “The National Coordination Committee of Electricity Employees and Engineers (NCCOEEE) vehemently oppose selective privatization with commercially lucrative revenue potential area of distribution utilities and support the strike of Chandigarh power employees.”

The Union Ministry of Home Affairs has approved Eminent Enterprises company from taking over the Chandigarh Power department. The process of transfer facilities has started and the company will take over by March.

Chandigarh power employees have already gone on a one day strike early this February. A joint convention with the city’s political parties, resident welfare committees, trade unions and social organizations and a massive dharna is also scheduled for February 15.

The department’s employees specified that the power supply rate in Chandigarh is lowest in comparison to adjoining states because of “cheap hydro and thermal power from central projects and a three per cent share in the BBMB”. The employees fear is that they might lose their jobs and their service conditions may not be protected.

Eminent Electricity Distribution Limited was finalized after it gave the highest bid on Chandigarh’s power privatization project. The company had quoted Rs 871 crore against the Rs 175 crore reserve price of the project.

A total of seven companies were in the race. These included Adani Transmission Limited, Tata Power, Torrent Power, Sterlite Power, renew Wind Energy, NESCl( NTPc) and Eminent Electricity of which Eminent was finalized being its highest bid.