Report by Kamgar Ekta Committee (KEC) correspondent
The strong opposition from workers, farmers and other people has forced the Central government to change its approach towards electricity privatisation. Instead of centrally pushing the privatisation through a new Bill, it is now being carried out through state governments and piece by piece. The Union government feels this will break the unity of power sector employees and weaken the opposition to privatisation.
The intention of the Central government in this regard has been made clear a few days back by none other than the Prime Minister. Addressing a gathering of big Indian and foreign capitalists at the ET Now Global Business Summit in New Delhi on 15 February, he announced, “Now we are also promoting the private sector in the power distribution sector, so that there is more efficiency in it.”
Staunch united opposition of power sector employees and engineers succeeded in defeating the attempts of the Central government to get the Electricity (Amendment) Bill approved by the Parliament. The Bill was meant to completely open up the power distribution sector to private sector.
One of the demands of lakhs of farmers, opposing the three Acts related to farming, was to scrap the Electricity (Amendment) Bill as they realised that privatisation of electricity will lead to sharp increases in electricity rates and consequently their cost of production. The Central government, while agreeing to the withdrawal of the three farming related Acts, had given a written assurance to farmers that no steps towards privatisation of electricity will be taken without consulting them.
However, the Central government went back on its written promise. It not only introduced the Electricity (Amendment) Bill in the Parliament without consulting farmers and electricity workers, but has been taking a number of steps towards privatisation of electricity distribution, in particular.
This raises a number of serious questions. What is the value of government promises? Who is this government accountable to – people of the country or only to a handful of big capitalists who want the full control of electricity sector for increasing their profit?
It is evident that big capitalists like Tata, Adani, Goenka, Jindal, Mehta (Torrent), Anil Ambani who have already acquired a dominant share in power generation, now want to do the same in the other two arms of power sector – distribution and transmission. They want both the central and state governments to facilitate the take-over of both distribution and transmission sectors.
The first step in this direction was taken by the Uttar Pradesh government when it announced its plan to privatise Poorvanchal Vidyut Vitran Nigam and Dakshinanchal Vidyut Vitran Nigam a few months back. Power employees of UP have been valiantly and relentlessly demonstrating against the plan under the banner of Vidyut Karmchari Sanyukt Sangharsh Samiti, UP. The Sangharsh Samiti has been mobilising people against the privatisation plan by holding mahapanchayats all over the state to explain to people how privatisation of distribution is against their interests.
Around the same time, the Rajasthan government announced the plan to privatise its power generation plants by forming joint ventures with other power generation companies. Utpadan Nigam Abhiyanta Karmchari Sanyukt Sangharsh Samiti is spearheading the opposition to the move in the state.
Despite the strong and sustained opposition of employees of Chandigarh Power Department and citizens of the city, its power distribution was privatised on 1 Feb 2025 with the support of the court and by forcing half the employees to take voluntary retirement.
At the same time the installation of smart meters in various states have met with strong opposition of consumers. Smart Meter Virodhi Sangharsh Samitis have been formed in many places and their actions have succeeded in halting their installation for the time being. Consumers have realised that smart meters will force them to make the payment of electricity in advance and enable the introduction of Time of Day tariff system, which will immediately enhance their power bill. Power sector employees are also opposing smart meter installation as they see it as a step towards privatisation. It will also lead to loss of jobs of a few lakh employees.
As far as power generation is concerned, the only segment in which private sector was not allowed was generation through nuclear power. “We have now opened the nuclear sector for private participation”, announced the Prime Minister in the same address. This announcement was also a part of the Finance Minister’s budget speech of 1 Feb 2025.
The government has made its plan to privatise the entire power sector abundantly clear. Privatisation of power sector hurts not only workers of this sector but workers of all other sectors as well as peasants as consumers. Only the strong unity of the entire working class and peasant will be able to stop these fresh attacks.