Resolutions adopted by the Federal Executive Meeting of the All India Poer Engineers Federation (AIPEF) held at Bengaluru on 12 June 2026
AIPEF Federal Executive Meeting adopted eleven resolutions. As the resolutions deal with various attacks and attempts at privatization going on presently in the country and are of keen interest to power workers and consumers, we are reproducing the resolutions one by one.
We here below reproduce the fifth and sixth resolutions.
(Please visit https://aifap.org.in/17805/ for full list of resolutions and the full text of the first resolution, “Against the any unilateral attempt of Tabling of the Electricity (Amendment) Bill, 2025 in the Monsoon Session of Parliament”. Please visit https://aifap.org.in/17819/ for the second resolution, “Against Grant of Parallel Distribution Licences to Tata Power in Karnataka and in Defence of Public Sector Electricity Distribution.” For the third resolution “Against Grant of Distribution Licence to Google AI Data Centre in Andhra Pradesh and its Adverse Impact on The Public Power System” please visit https://aifap.org.in/17827/). The fourth resolution, “Against Joint Venture/Privatization of Ladakh Power Development Department”can be seen at https://aifap.org.in/17861/.
Resolution
Against the Creation of Separate Agriculture DISCOMs
The All India Power Engineers Federation (AIPEF), representing power engineers across the country, expresses its strong opposition to the policy initiatives being pursued in certain states for the creation of separate Agriculture Distribution Companies (Agriculture DISCOMs).
The Federation believes that such restructuring is neither technically justified, nor commercially viable, nor financially sustainable.
AIPEF notes that agriculture power supply is intrinsically linked with broader issues of food security, rural development, irrigation, groundwater management, and farmer welfare. The challenges associated with agricultural electricity consumption cannot be resolved through mere administrative restructuring or by carving out separate entities from existing integrated distribution systems.
The Federation observes that agricultural power supply is a loss-making but socially essential service. Isolating agricultural consumers into separate DISCOMs would merely concentrate financial losses within a single entity, thereby weakening its long-term sustainability and increasing dependence on government subsidies. Such a move would undermine the fundamental principle of cross-subsidization that has historically enabled universal electricity access and balanced sectoral growth.
AIPEF further emphasizes that the fragmentation of distribution utilities into profitable and non-profitable segments is counterproductive and contrary to sound utility management practices. Experience with feeder separation and other restructuring measures has not demonstrated any conclusive evidence that further segregation will improve efficiency or financial performance.
The Federation is particularly concerned that the creation of Agriculture DISCOMs is a continuation of the broader agenda of unbundling and privatization of the power sector. By isolating high-loss consumer categories, the path is paved for eventual privatization of profitable urban and industrial distribution areas while leaving socially obligated services under public ownership and financial stress.
AIPEF notes that the Telangana, Maharashtra & Haryana model of seperate Agriculture Discom creates a utility responsible for supplying electricity to agriculture, irrigation, and water-related services without corresponding control over generation, transmission, or the broader distribution network. Such an arrangement creates accountability without authority and is therefore structurally flawed.
Federation also questions rationale behind Maharashtra model of creating a separate entity for agricultural feeder solarization. Solarization of agricultural feeders can be implemented within existing DISCOM structures. Establishing new companies merely increases administrative overheads, creates duplication of functions, and adds financial burdens without addressing the underlying challenges of power supply.
AIPEF further cautions that large-scale dependence on solar generation for agricultural supply raises significant technical challenges related to intermittency, grid stability, frequency control, and voltage management. Any such transition must be guided by comprehensive techno-economic studies rather than administrative restructuring.
The Federation recalls the vision underlying India’s electricity sector development, which emphasized coordinated and integrated planning of generation, transmission, and distribution to ensure economical and efficient supply of electricity. The creation of commodity-specific or sector-specific distribution entities runs contrary to this principle and threatens to weaken the integrated character of the power system.
Therefore, AIPEF Resolves:
1. To strongly oppose the creation of separate Agriculture DISCOMs or similar sector-specific electricity distribution entities in any state.
2. To demand that State Governments and the Government of India abandon policies aimed at further fragmentation of the electricity distribution sector.
3. To insist that agricultural power supply issues be addressed through comprehensive measures such as adequate subsidy support, improvement in infrastructure, energy-efficient irrigation, groundwater management, and scientific demand management rather than through artificial organizational restructuring.
4. To oppose any attempt to use Agriculture DISCOMs as a precursor to privatization of profitable distribution areas.
5. To call upon all constituent organizations, engineers, employees, farmers’ organizations, and consumer groups to jointly resist policies that weaken integrated public electricity utilities.
6. To urge policymakers to strengthen public sector DISCOMs through financial support, professional management, modernization of networks, and investment in domestic manufacturing of renewable energy equipment, thereby promoting both energy security and self-reliance.
AIPEF Calls Upon
The Government of India and all State Governments to reject the concept of separate Agriculture DISCOMs and instead pursue policies that strengthen integrated public electricity utilities in the interests of farmers, consumers, employees, and the nation.
Resolution
Resolution Opposing the Creation of a Separate Agriculture DISCOM (TGRPDCL) in Telangana.
The All India Power Engineers Federation (AIPEF), representing power engineers across the country, expresses its serious concern and strong opposition to the proposal for creation of a separate Agriculture
Distribution Company (TGRPDCL/Rythu DISCOM) in Telangana for handling agricultural consumers.
After examining the proposal and the issues raised before the regulatory authorities, AIPEF is of the considered view that the creation of a separate Agriculture DISCOM is neither in the long-term interest of farmers nor in the interest of a financially sustainable and integrated power distribution system.
AIPEF Notes with Concern that:
1. No convincing public interest justification has been established for creating a separate Agriculture DISCOM. The proposal does not explain how the new arrangement will address the fundamental gap between the Average Cost of Supply (ACS) and Average Billing Rate (ABR), nor does it demonstrate any tangible benefit to either agricultural consumers or existing DISCOMs.
2. The proposed entity does not appear to possess an independent and complete distribution system as envisaged under the Electricity Act, 2003. Questions remain regarding its eligibility and capability to function as a full-fledged distribution licensee.
3. Segregation of agricultural consumers into a separate DISCOM raises serious legal concerns regarding the Universal Service Obligation (USO) under Section 43 of the Electricity Act, 2003. Such consumer category- based segregation could amount to indirect “consumer cherry-picking,” contrary to the spirit of the Act and judicial pronouncements.
4. The proposed model creates substantial operational uncertainties relating to consumer categorization, unauthorized use of electricity, complaint redressal, maintenance responsibilities, energy accounting, and emergency restoration of supply.
5. The proposal relies on installation of more than five lakh agricultural DTR meters at enormous cost despite acknowledged practical difficulties relating to communication networks, maintenance, safety, and field conditions in rural areas.
6. The new DISCOM is proposed to commence operations before resolution of linked licensing and operational issues, thereby creating avoidable uncertainty and administrative complications.
7. Creation of a separate Agriculture DISCOM may become a precursor to privatization of the remaining consumer base in existing DISCOMs, thereby undermining the public sector character of electricity distribution in Telangana.
8. The manpower proposed for the new DISCOM is grossly inadequate considering the vast rural network to be managed, creating risks for reliable operation, maintenance, and consumer service.
9. Adequate statutory safeguards regarding employee service conditions, seniority, promotions, pension, gratuity, provident fund and other benefits have not been clearly guaranteed.
10. The proposed Agriculture DISCOM would be almost entirely dependent upon government subsidy, lacking a diversified revenue base and cross-subsidy support mechanism, thereby exposing it to significant financial vulnerability.
11. Critical issues relating to power purchase agreements, tariff implications, cross-subsidy arrangements, energy accounting, settlement mechanisms, grid operation, and system control remain unresolved and require comprehensive examination.
Therefore, AIPEF Resolves:
1. To strongly oppose the creation of a separate Agriculture DISCOM in Telangana in its present form.
2. To urge the Telangana Government and the Telangana Electricity Regulatory Commission to undertake a comprehensive review of the proposal from legal, financial, operational, consumer, and employee perspectives and reject the proposal.
3. To demand that no restructuring or transfer of agricultural consumers, assets, or employees be undertaken until all statutory, regulatory, operational, and employee-related issues are satisfactorily resolved.
4. To insist that the interests of farmers, electricity consumers, and power sector employees & engineers must be fully protected and that any reform proposal should strengthen, rather than fragment, the public electricity distribution system.
5. To reiterate AIPEF’s consistent position that improvement in power distribution can be achieved through strengthening existing public sector utilities, ensuring timely subsidy payments, reducing losses, improving infrastructure, and enhancing manpower, rather than through organizational fragmentation and steps that may ultimately facilitate privatization.
AIPEF Calls Upon
All power engineers, employees, workers, consumers’ organizations, farmers’ associations, and democratic forces to remain vigilant and united in safeguarding a strong, integrated, publicly owned, and consumer-oriented electricity distribution system in Telangana and throughout the country