Letter by Maharashtra State Electricity Workers Federation (MSEWF) to the Chief Minister
(Translation of Marathi letter; letter in Marathi is given after English letter)
Maharashtra State Electricity Workers Federation
Registration no. 4309
(Affiliation: AIFEE and AITUC)
Nelson Chowk, Near Sitaram Maharaj Mandir, Cantonment, Nagpur 440013
Email: msewfnagpur@gmail.com
2592191 (off), 9823019531 (Mobile)
Mohan Sharma, President
Nagpur Date 07.07.2026
Hon’ble Chief Minister,
Government of Maharashtra,
Mantralaya, Mumbai.
Subject: Decision about the division of Mahavitaran Company, establishment of a new company and implementation of the IPO process.
Sir,
Mahavitaran Power Company, under the jurisdiction of the Government of Maharashtra, is a leading power company in the country, providing uninterrupted power to 3.4 crore electricity consumers and 45 lakh farmers in the state at subsidized rates. This company has set a target of providing power to 99 percent of the state by building a 3 lakh kilometer power infrastructure. The employees, engineers and officers of this power company have built these assets worth Rs 3 lakh crore by their sweat and labour. During the state-wide strike to prevent the privatization of this company well known in the Asian continent, the Hon’ble Chief Minister and the Power Minister had agreed that there would be no privatization of any kind of the power companies.
The Ministry of Power of the Government of Maharashtra stated on 29 April 2026, that as per the government decision, the Maharashtra Distribution Company will be split into two companies, namely ‘MSEB Solar Agro Power Ltd.’ for electricity distribution for agricultural related activities and the main company of Mahavitaran for non-agricultural electricity consumers, and that Mahavitaran Company has decided to raise funds from the capital market through Initial Public Offering (IPO).
After the proposed division and restructuring, all the business activities related to agricultural power supply will be transferred to an independent distribution company. The government circular states that the function and objective of the independent agricultural distribution company is to provide power supply and related services only to agricultural consumers.
The decision to divide and restructure the Maharashtra Distribution Company is a STRUCTURAL CHANGE and is likely to affect the service conditions of workers, engineers and officers on many issues such as promotion, transfer, seniority, etc. The government and the management have proposed this change unilaterally without taking the trade unions into confidence. Before the division, till date, all 3.4 crore electricity consumers are being served through the employees, engineers and officers of the Maharashtra State Electricity Distribution Company Ltd (Mahavitaran). The government has decided to make changes in them after the division of the Maharashtra State Electricity Distribution Company.
As a result, 45 lakh agricultural customers are to be served through the company ‘MSEB Solar Agro Power Ltd’ and therefore the employees and engineers of Mahavitaran will have to be divided into urban and rural. The remaining 2 crore 95 lakh non-agricultural electricity customers will be served by Mahavitaran. Due to this change, a change in the service conditions of employees in rural and urban areas is inevitable. The Workers Federation demands that a bilateral settlement be made after discussing with the unions in this regard. The Chandigarh government handed over the power department to a private company in February 2025. Since then, the electricity employees there have been struggling since after privatization their service conditions (such as pension scheme, forced VRS, dismissal of contract workers who have been working for a year, etc.) have been changed. To avoid this, the legal requirement of a bilateral settlement cannot be avoided by discussing with the unions so that there will be no change in the service conditions of employees in Mahavitaran.
For some time now, the practice of taking unilateral decisions in the management of Mahavitaran has been increasing. The guiding decision circular issued by the government on April 21, 2026, contains a detailed explanation of the decisions on the restructuring of the Mahavitaran Company, government guarantee, acceptance of debt obligations, division of the agricultural distribution business, transfer, listing, and preparation for IPO. However, it has avoided mentioning in detail about the service conditions of the employees in the divided companies and whether the unions have approved these changes.
Why is the organization opposing the IPO?
Even if we assume that the government’s intention in splitting the Mahavitaran Company and establishing a separate company for agricultural electricity consumers is correct, the intention of the government and the management behind issuing the IPO and listing the Mahavitaran Company on the stock market is clearly to secretly involve private companies in the financial and managerial operations of the Mahavitaran Company.
Through IPO, there is an attempt to reduce the role of the Mahavitaran Company in the public sector, which is under the jurisdiction of the government. Through that medium, there is an attempt to promote private shareholders in the financial management of the company by paving the way for the entry of capitalists and their companies. The issue of the energy sector is not only financial but also related to social, political, and employment issues. It is the responsibility of the state to provide affordable and reliable electricity to all sections of the society. Due to IPO, this social obligation principle will be curtailed.
Our organization’s belief is that the Mahavitaran Company is not just a company but an institution for the development of the state and the nation Money collected as tax from all the people, labour of workers, knowledge and sacrifice of engineers and officials has created the company. The government and the management should not forget this historical reality. The market-based system in the stock market gives priority to commercial interests over national interests which is dangerous. Completely entrusting the energy sector to the logic of the stock market, reducing public ownership and giving top priority to profit is not in the interest of the state, the people, electricity consumers and employees, so the Workers Federation opposes the IPO. We believe that due to the IPO, the government ownership of the public sector t Mahavitaran Company will decrease and private capitalists and companies will enter, thereby taking a step towards privatization.
Initially, when the government and management issue IPOs of government companies, they list only a small percentage of shares, i.e. 5%-10%. Then, in stages, they issue FPOs and sell more and more shares of the government in that company, and in this way, the proportion of private shares increases within a short period of time. Due to frequent sales of government shares, the government’s share in 20 public sector undertakings (PSEs) has already come down to less than 60 percent. The government’s share in the country’s largest bank, State Bank of India, is now only 55.5%. It remains only 51.1% in the country’s largest power generation company, National Thermal Power Corporation (NTPC). We suspect that the same will happen in the case of Mahavitaran and Mahapareshan. In Government Decision No. 9.5, the Maharashtra Government has clearly stated that after listing, the Maharashtra Government can sell some of its shareholding in stages through an offer for sale (OFS). We have taken note of this and therefore our suspicion is certainly justified.
In the case of IDBI Bank, which was once a public sector undertaking, the government initially reduced its ownership steadily through IPO and FPO. Then, by making LIC, another public sector undertaking, as a major shareholder, the government brought its stake below 51 percent. The government further announced that now that its stake is less than 51 percent, IDBI Bank is no longer a public sector bank and hence it can be privatized. The situation of Mahavitaran may be exactly the same. This is the reason why the Workers Federation is opposing the IPO.
The Workers Federation demands that a tripartite discussion be organized at the level of the Hon’ble Chief Minister regarding this very important issue and its consequences.
Yours sincerely
- Mohan Sharma (President)
- Mahesh Jotrao (Working President)
- Krishna Bhoyar (General Secretary)
- Arun Mhaske (Addl.General Secretary)
True copy forwarded:
1) Hon. Principal Secretary Power Ministry, Mumbai for information.
2) Submitted to Hon’ble Chairman and Managing Director, Mahavitaran, Prakashgad, Bandra for appropriate action.
3) Submitted to Hon’ble Director (Finance), Mahavitaran, Prakashgad, Bandra for appropriate action.
4) Submitted to Hon’ble Director, Mahavitaran, Prakashgad, Bandra for appropriate action.
5) For the information of all central office bearers of the Workers Federation.
Upload.Marathi.MSEWF letter to CM against IPO