Resolutions adopted by the Federal Executive Meeting of the All India Power 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 seventh and eighth 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/. Please visit https://aifap.org.in/17874/ for the fifth resolution, “Against the Creation of Separate Agriculture DISCOMs” and for the sixth resolution, “Resolution Opposing the Creation of a Separate Agriculture DISCOM (TGRPDCL) in Telangana”.
Resolution
Against creation of separate Agriculture Discom in Maharashtra.
The All India Power Engineers Federation (AIPEF) expresses its strong opposition to the Maharashtra Government’s decision to demerge the agriculture business of Maharashtra State Electricity Distribution company Limited (MSEDCL) and transfer it to a separate entity, MSEB Solar Agro Power Limited, through the Maharashtra Electricity Distribution Company Restructuring and Transfer Scheme, 2026. The scheme creates a separate agriculture distribution company responsible for supply, billing, subsidy management, and revenue recovery from agricultural consumers while MSEDCL continues to own and maintain the distribution network.
AIPEF considers this move a dangerous experiment in the power sector that undermines the integrated distribution utility model and opens the door for future privatization and fragmentation of electricity distribution in Maharashtra.
AIPEF’s Major Concerns
1. Artificial Fragmentation of Distribution Business
The Electricity Act, 2003 envisages distribution utilities as integrated entities responsible for power procurement, network operation, consumer services, billing, and revenue management. The proposed scheme separates agricultural consumers from the mainstream distribution utility, creating an artificial division that will increase administrative complexity.
2. First Step Towards Privatization
Experience across the country shows that restructuring, unbundling, and carving out specific consumer categories are often precursors to privatization. AIPEF believes the creation of a separate agriculture DISCOM creates a structure that can subsequently be handed over to private operators or public-private partnerships under the pretext of improving efficiency.
3. Threat to Cross-Subsidy and Financial Stability
Agricultural consumers constitute a major subsidized category. Separating this segment from MSEDCL will distort the existing cross-subsidy mechanism and may weaken the financial structure of the state distribution utility. The scheme transfers agricultural receivables and subsidy-related assets while leaving substantial operational dependencies between the two entities, creating future financial uncertainties.
4. Creation of Multiple Layers of Bureaucracy
The new company will have separate management, regulatory filings, tariff petitions, accounts, subsidy mechanisms, and administrative structures. This will increase overhead costs without adding any value to consumers or improving electricity supply.
5. Operational Confusion and Accountability Issues
Under the scheme, MSEDCL will continue to own and maintain the distribution network while the agriculture company will undertake consumer-related functions and reimburse MSEDCL through service charges and power cost reimbursements. Such divided responsibility is likely to create disputes over accountability, service quality, losses, and financial settlements.
6. Impact on Employees
AIPEF is concerned that the restructuring may eventually affect manpower planning and job security of engineers & employees. The power sector has repeatedly witnessed restructuring being used as a tool for workforce rationalization and outsourcing.
7. No Evidence of Public Benefit
The Maharashtra Government has not demonstrated how creating a separate agriculture company will improve power supply, reduce losses, enhance consumer services, or strengthen MSEDCL financially. Structural changes alone cannot substitute for better governance, timely subsidy payments, and efficient utility management.
AIPEF Demands
1. Immediate withdrawal of the Maharashtra Electricity Distribution Company Restructuring and Transfer Scheme, 2026.
2. Retention of MSEDCL as a single integrated distribution utility responsible for all categories of consumers.
3. Strengthening of MSEDCL through improved management practices, timely subsidy reimbursement, and adequate investment in network infrastructure rather than fragmentation of the utility.
4. Protection of employees’ service conditions, job security, promotional opportunities, and pensionary benefits.
5. Comprehensive consultation with engineers and employee organizations, workers, farmers’ organizations, consumer groups, and other stakeholders before undertaking any structural changes in the electricity sector.
6. Rejection of any future move aimed at privatization or commercialization of agricultural power distribution.
Conclusion
AIPEF firmly believes that the challenges faced by the power sector can be resolved through better governance, accountability, investment, and policy support—not through repeated restructuring and fragmentation of public utilities. The Federation calls upon the Government of Maharashtra to reconsider this decision and preserve the integrity of MSEDCL as a unified public sector distribution utility serving all categories of consumers.
Resolution
Against the Creation of a Separate Agriculture DISCOM in Haryana.
The All India Power Engineers Federation (AIPEF), representing power engineers across the country, strongly opposes the decision of the Government of Haryana to create a separate Agriculture Distribution Company (Agriculture DISCOM) for supplying electricity to agricultural consumers in the State.
AIPEF notes that the Haryana Government has justified the creation of a separate Agriculture DISCOM on the grounds of ensuring faster release of agricultural connections, reliable and uninterrupted power supply to farmers, speedy replacement of transformers and reduction of subsidy burden. However, no convincing evidence has been provided to establish how mere administrative bifurcation of existing distribution utilities will achieve these objectives.
The Federation observes that agricultural feeders in Haryana are already separately managed and scheduled. Farmers are presently receiving electricity supply through dedicated feeder arrangements. Therefore, the creation of a new DISCOM does not provide any additional technical, operational or consumer service advantage.
AIPEF believes that the real objective behind the proposed restructuring is to segregate the loss-making agricultural sector from the profitable industrial, commercial and domestic consumer categories. Such segregation creates conditions for eventual privatization of profitable distribution areas while leaving the subsidy-dependent agricultural sector under government control. This model effectively seeks to privatize profits while socializing losses.
The Federation further notes that agriculture accounts for only about 15–20 percent of electricity consumption in Haryana, while industrial and domestic consumers together account for nearly 65–75 percent of total consumption. The agricultural sector receives substantial state subsidy exceeding ₹5,400 crore annually. Separating agricultural consumers into an independent DISCOM will neither reduce subsidy requirements nor improve operational efficiency.
AIPEF is of the considered view that the proposed Agriculture DISCOM will:
1. Increase administrative and managerial expenditure through duplication of corporate structures, offices and manpower.
2. Create additional financial burden on the State Government without delivering corresponding benefits.
3. Lead to fragmentation of the integrated distribution system.
4. Generate coordination problems between transmission, distribution and agricultural supply operations.
5. Become a precursor to privatization of profitable consumer segments in Haryana.
6. Weaken the financial viability and operational stability of the existing public sector distribution utilities.
7. Ultimately undermine the public service character of electricity distribution in the State.
AIPEF reiterates that the challenges of improving power supply quality, reducing losses, strengthening agricultural infrastructure and enhancing consumer services can be effectively addressed within the existing distribution framework without creating another DISCOM.
AIPEF therefore:
Demands immediate withdrawal of the proposal to establish a separate Agriculture DISCOM in Haryana.
– Calls upon the Government of Haryana to strengthen existing public sector DISCOMs instead of fragmenting them.
– Urges all power sector employees, engineers and workers to remain vigilant against restructuring measures aimed at facilitating future privatization.
– Appeals to farmers’ organizations, consumer groups and public representatives to oppose any move that, weakens public ownership and public accountability in the electricity sector.
AIPEF firmly believes that strengthening integrated, publicly-owned distribution utilities is the most effective way to ensure reliable power supply, protect consumer interests and safeguard the long-term sustainability of the power sector.