NIPEF says Bansi8217;s statement is false

The NIPEF leader said that with regard to power generation, the HSEB had already allowed private parties to set up 35 liquid-fuel-based power projects, each of 25 mw capacity, which were due to be commissioned by the end of 1999. Twenty power purchase agreements had already been signed with companies such as Mangum, DLF Power, Som Dutt, National Steel and Phoenix.

The HSEB would entrust the 500-mw Yamunanagar thermal station to a private party. The bids were to be opened on August 8. This station was earlier separately entrusted to the National Thermal Power Corporation and an Israeli company, both of whom backed out. The HSEB is inviting bids from private parties for the proposed 500 mw thermal station at Hisar, he said.

With massive participation of the private sector in generation and distribution, and guaranteed returns in the range of 16 to 27 per cent added to the financing costs imposed by the World Bank, the power tariff for Haryana would be in the range of Rs 6 per unit, he said.

Singh said that while Bansi Lal may try to mislead the public, it was not possible to fool the World Bank. Privatisation would have to be resorted to, otherwise the loan would not be forthcoming.

He alleged that while interest rates are in the range of four to five per cent in the western countries which are donors to the World Bank, the Bank would charge over three times the interest, at 15 or 16 per cent, to Haryana. This proved that the intent was to make a profit at the cost of Haryana, he said. Added to this is the additional liability of rupee devaluation which would straightaway put an additional burden on interest and loan repayments to be made in rupees.

The NIPEF leader said Bansi Lal8217;s earlier statement on September 23 that there would be no 8220;retrenchment8221; was twisting facts as two senior executive engineers of the HSEB were sacked in August, even before the HSEB was split-up. Now the trade union leaders opposing privatisation are being systematically victimized and even arrested. The package of restructuring and reforms dictated by the Washington head office of the World Bank will necessarily involve mass retrenchments.

He said that Bansi Lal, as Chief Minister of Haryana, had no authority or justification to make policy statements on power sector reforms because after the sellout to the World Bank, the policies would be dictated from Washington and the puppets in Chandigarh and Panchkula would be forced to dance to the World Bank8217;s tune.