Power reforms 8212; Centre backs UP

On Monday, with all generating units across the State except the Aanpara thermal unit shut down due to the striking employees, generation in the state was down to a third of the normal 3,300 MW and the state drew large amounts of power from NTPC, with the Centre agreeing to step this up.

Kumaramangalam, who is scheduled to address a press conference in Lucknow today, is going to focus on how UPSEB employees are trying to protect the benefits they derive from the huge theftof power that takes place in the state 8212; close to 40 per cent of the total power generated in UP is stolen, and that adds to a whopping Rs 3,000 crore.

As a senior official of the Power Ministry pointed out, 8220;Normally workers strikes are related to their service conditions, salaries etc. But in this case, workers are not fighting for this, as the state government has already assured that these will be protected. They are only opposing reforms because they have a vested interest in encouraging power pilferage in the state.8221;

In addition, Kumaramangalam is expected to highlight the fact that the State has a pathetic record of efficiency in the power sector. It owes Rs 3,900 crore for power it has already bought from Central utilities such as NTPC and NHPC 8212; that8217;s around a fifth of the outstandings of all SEBs to these utilities. And when 10 years ago, the UPSEB transferred its Unchahar power plant to NTPC, its efficiency increased from 20 per cent plant load factor to 80 per cent!

Meanwhile, the UttarPradesh government on Monday extended its deadline by 24 hours for the striking powermen to return to their duties by January 19 or face dismissal as the overall power situation remained grim, with many parts of the state facing disruption of power supply amid declining electricity generation.

The powermen are striking against the decision of the government to dismantle the State Electricity Board, splitting it into three organisations 8212; UP Thermal Power Corporation, UP Hydroelectric Power Corporation and UP Power Corporation.

While the first two organisations have the mandate for generation of power, the last will be responsible for transmission and distribution Tamp;D of power in the state. Not only this, UP has transferred its Tanda Thermal plant to National Thermal Power Corporation NTPC. This plant, valued at around Rs 1,100 crore, will be adjusted aganist the UPSEB8217;s outstandings to the Central power utilities, but is also an attempt to improve the efficiency of this plant.

While in the firstphase, the state government has assured that no employee will be laid off as a result of the move to corporatise the UPSEB, the ultimate aim may be to privatise the distribution of power in order to restrict the pilferage of power.