REPORT FROM THE STATES
KERALA : Protest against
move to private power sector
Kerala constituent of the
National coordination Committee of Electricity employees and engineers organised
a rally against 'Electricity Bill-2001 on 4th December,2001.
The rally, which began from the High Court Junction, concluded at the boat
jetty. Mr. K.N. Ravindranath, CITU State president, inaugurated the rally. He
said that the central Government should desist from privatizing public sector
institutions.
Privatisation of the electricity sector would
affect the economic prospects of the country. Attempts to backtrack from
investing in the public sector would also prove detrimental. The Centre's policy
of welcoming privatisation betrayed its open support for globalisation.
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DVC: Activities of DVC Shramik Union
S.Sinha
DVC
Shramik Union has been organizing sustained programmes of deputation,
demonstration etc., for achieving the economic demands of employees of DVC and
saving the existence of the Grand design, Damodar Valley Corporation in the face
of onslaught of the anti-worker and anti-nation policies of liberalisation,
privatisation and globalisation. Explanatory campain are also being carried out
by our Union in the various projects of DVC about the adverse affect of the
proposed "Electricity Bill-2001" and p[privatisation of electricity industry
which will hamper the development of the under-developed areas and the people.
We have also took part in all the conventions and other joint programmes of
electricity employees at the state and central level. But we could not
materialize joint movement of electricity employees in our own industry inspite
of our best efforts.
DVC Shramik Union organised a mass
rally on 28th September, 2001 at the headquarter of DVC in Kolkata on the
following demands: (i) Recognition of DVC Shramik Union, (ii) To save DVC and
for expansion and improvement of performance of DVC, (iii) Bonus or equivalent
@10% of wages, (iv) Finalisation of assured career progression, (v) To settle
the remaining issues of pay revision and early settlement of grievances of
employees, (vi) Absorption of all empanelled candidates and (vii) To build up a
separate pension fund for DVC employees. The rally was largely attended by the
employees and addressed by Com. Shyamal Chakraborty, President and Com. Basudev
Acharia, M.P. Vice President, besides other leaders, of the union. From the
rally a team of delegates under leadership of Com. Basudev Acharia met the
Secretary of DVC and submitted a memorandum.
Like other
Public Sector Organisations of the Country Damodar Valley Corporation (DVC) has
been under the grip of adverse effects of the so called new economic policies of
the Government of India led by Congress and presently BJP's National Democratic
Alliance. Apart from Generation and distribution of power the other objects this
multi-purpose organisation viz., Flood Control, Afforestration, Soil
conservation, water supply for Irrigation, Domestic and Industrial purpose etc.,
are being neglected by the management causing great harm to the socio-economic
development of the Damodar Valley region for which the organisation was built up
in 1948 under joint partnership of the central government and the State
government of West Bengal and Bihar (presently Jharkhand).
Attempts are being made from time to time for dismemberment of the organisation
in the name of restructuring following the recent policies of GOI. Since 1995
the No.s of employees have been reduced drastically by several thousands under
guise of rational man-power and jobs are being handed over to contractors at
random. Now an umbrella agreement has been made with a firm named Utility
Powertech Ltd. for offering contract of any of the jobs of DVC's existing 4
(four) Thermal Power Stations. Privatisation of the new power stations of DVC is
being done very tactfully through joint venture. The 1000 MW MaithonRight Bank
Thermal Power Station is being built through such joint venture with BSES Ltd.
The other proposed new Thermal Power Stations allotted to DVC which are going to
be build utilizing its resources are also apprehended to be privatized under
cover of the so called joint venture.
Our Union has been
opposing the said onslaught on this premier public Utility Organisation and
trying to forge Unity with other organisations of employees for launching
greater movement to save it in the interest of the common people.
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ALTERNATIVE APPROACH IN WEST BENGAL
The Left Front-led
government of west Bengal has put its money where its mouth is. It is consistent
in opposing privatisation of any unit, central or state. Instead according to
finance minister Asim Dasgupta, five year programme have been launched in 18 out
of the 67 government undertakings in the state to reduce losses and nurse PSUs
back to health.
But there is an exception. The state run
Great Eastern Hotel was all set to be divested to the France-based Accor group
because the government realized its energies could not be spent running a hotel.
The West Bengal government finalized the terms of divestment. However, trade
union objections to the sale and the plans of the French company to make
architectural changes in the historic structure that houses the hotel, led to
the divestment falling through.
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TAMIL NADU: MEMORANDUM OF UNDERSTANDING BETWEEN MINISTRY OF POWER , GOVENRMENT
OF INDIA AND THE GOVERNMENT OF TAMIL NADU
This
memorandum of understanding is made between ministry of power , govenrment of
India and the government of Tamil Nadu toaffirm the joint commitment of two
parties to the reform of power sector in Tamil nadu and to set out the reform
measures which State of Tamil Nadu will implement and the support that
GOVENRMENT OF INDIA will provide.
1. Government of Tamil
Nadu has adopted following objectives for its Power Sector.
(a) Electricity
ids supplied under the most efficient conditions in terms of quality and cost to
support the economic development of the state, and
(b) The power sector
becomes self supportive and a net generator of financial resources.
GOVERNMENT OF INDIA is committed to support the process of reform of the power
sector in the State of Tamil Nadu. GOVERNMENT OF INDIA and GOVERNMENT OF TAMIL
NADU are of the view that the power Sector Reform should be carried out and the
interest of different shareholders viz., the utilities, consumers, general
public, employees and the State.
This memorandum of
Understanding between GOVERNMENT OF INDIA and the GOVERNMENT OF TAMIL NADU will
undertake in the process of reform and structuring and the support, which
GOVERNMENT OF INDIA would give to GOVERNMENT OF TAMIL NADU.
II. Reform programme of Tamil Nadu
1. Government of Tamil
Nadu would appoint Chairman to State Electricity Regulatory Commission by
31/1/2002 and make the SERC functional. Tariff petition will be filed by
30/9/2002.
2. The Government of Tamil Nadu will ensure timely payment of
subsidies required in pursuance of Government of Tamil Nadu's orders on the
tariff determined by the TNERC.
3. Government of Tamil Nadu will ensure that
current operations in distribution reach break even by 31/3/2003 and positive
return thereafter.
4. Government of Tamil Nadu will complete rural
electrification of all villages and hamlets by 2007.
5. Energy Audit &
Reduction in T&D losses
Government of Tamil Nadu will
undertake energy audit in phased manner at all levels taking the substation as
the unit in order to reduce system losses to the level of 15%. For this purpose
following steps will be taken.
(i) Installation of meters at
all 11 KV feeders by 31.12.2001 (already achieved)
(ii) 100% metering of all
consumer by 31st December 2003.
(iii) Energy Audit at 11KV sub-stations
level would be made operational from 1.1.2002
(iv) Development of an
effective Distribution Management Information System.
(v) Formation of
distinct distribution profit centers at divisional level and preparation of
separate commercial accounts/shadow Balance Sheets for such centers from
31.3.2002.
(vi) Computerisation of HT & LT billing by 31.12.2002.
6. Government of Tamil Nadu will securities outstanding dues of CPSUs as per
scheme approved by Government of India. After securitisation Government of Tamil
Nadu will ensure that CPSU outstanding does not cross the limit of 2 months'
billing.
7. Tamil Nadu will maintain grid discipline, comply with grid code
and carry out the directions of Regional Load Despatch Centre.
8. Tamil Nadu
will take all steps for the implementation of energy conservation and demand
side management.
9. Tamil Nadu will constitute district level committees to
undertake resource planning, monitoring of distribution reforms and rural
electrification.
III. Support from Government of India
1. Strengthening and improvement of transmission network and supply of
additional power to Tamil Nadu.
Powergrid and TNEB will
identify areas where transmission lines have to be built and/ or strengthened.
While Powergrid normally does not invest in intra-state transmission lines, it
will be willing to do so for Tamil Nadu in recognition of its being a reforming
state. Such investment would take place on the basis of mutually satisfactory
commercial arrangements.
2. Strengthening of sub-transmission and
distribution system
Financial support would be extended to
enable Tamil Nadu to upgrade its sub-transmission and distribution network
including metering in three identified circles through APDP.
3. R&M
Financial support would be extended to enable Tamil Nadu to undertake R&M and LE
of old thermal/hydel stations through APDP .
4. Financing
¢ In recognition of Tamil Nadu being a reforming state, Power Finance
Corporation would be prepared to finance the investment needs in relaxation of
normal conditionalities relating to exposure limit, ROR and DSCR on development
and implementation of reform package.
¢ Technical consultancy assistance
would be provided for studies for system loss reduction programme, which would
include appropriate technology including a high voltage distribution system in a
phased manner.
¢ Financial assistance would be provided for executing the
system loss reduction programme.
IV. IMPLEMENTATION
a.
The above is the broad understanding reached between GOVERNMENT OF INDIA and
GOVERNMENT OF TAMIL NADU. The modalities of detailed implementation shall be
worked out jointly.
b. Implementation of the MOU would be monitored every
three months.
This Memorandum of Understanding will be for a
period of five years, and will be subject to review annually.
Through this
memorandum of understanding both parties affirm their commitment to fulfill the
reform activities and achieve the objectives agreed upon in this memorandum.
Signed this day the 9th day of January, 2002 at New Delhi
For on behalf of government of Tamil Nadu For and on behalf of Government of
India
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CURRENT CONVERGENCE
The Gujarat
government's idea of creating a power pool to obviate fluctuating frequency and
other problems has merit.
Even as India gets ready to bid adieu to the Oil
Pool Mechanism, the Gujarat government is now thinking of setting up a power
pool in the state. And like the Oil Coordination Committee, which had control
over the oil pool, Gujarat is thinking of handing over the reins of this Power
Pool to the financially strapped Gujarat Electricity Board. To be set up on the
lines of US and UK energy pool model, the Power pool would be first in India, by
any state.
The state level strategy is that all power
generating units, both private and government, would pump their generated power
into the pool. This would then be distributed to consumers - industrial,
domestic, agricultural and commercial - based on needs-assessments to be carried
out by the GEB.
While the tariff would be based on the
award by Gujarat Electricity Regulatory Commission, allocation of power will
vest in the GEB. Even the power drawn from various grids outside the state would
also form part of this pool.
"This is a very nice concept
an could help improve the quality of power supplied," said Sudhir Chaturvedi,
executive director, Power Grid Corporation of India Limited. According to him, a
basic ingredient for "quality" power is frequency and if all the players in
generation business route their power through a common pool it could help
control fluctuations in the frequency.
As the frequencies
of the generating companies vary with that of the grid, it leads to safety
issues and other problems. With single assured source of supply, this can be
controlled, he feels. There is a catch, however. Analysts say that electricity
being a concurrent subject, a state can go ahead with this system but it may not
be feasible when there are only two or three players in the market. "The Indian
power market is not as mature as the West, where they have hordes of power
generating companies. In India we have only three-four IPPs and the rest is
controlled by SEBs.
Even the quality variation is because
of old technology and some other factors," says an analysts. Experts feel this
system is best for situations where the power industry per se is profitable
business and in economies where demand for power is more.
In West, the electricity is traded as stock in the security markets, for
instance. This requires a well-developed and mature power trading corporation
and many IPPs or generating companies to provide sufficient competition to help
consumers get better quality power at "affordable" rates. In India, the
situation is different. India requires as much as Rs 1,00,000 crore as
investment in next five years just to meet its demand for power. Moreover, the
implementation of the Power Pool concept depends on the PPA inked between
various SEBs and IPPs. If guarantees have been provided in these PPAs, the
question then is who would foot the bill. IPPs will always be apprehensive that
despite supplying power through the pool they may not get adequate returns as it
would finally be distributed by the SEB.
Even in case of
third party sale, IPPs would not be independently allowed to sell power and
recover money as quantity of power will be decided by the SEB. Conversely, if
IPPs are allowed to route their power to third parties via this pool, the SEB's
financial position could further deteriorate as it could lose out on the crème
de la crème of its customers of IPPs.
Keeping this in mind,
the Gujarat government has conceptualized the power pool. This is being
considered as a step towards wooing the GEB employees, who have been vehemently
opposing power sector reforms in their present format. This concept, the state
government feels, would help it keep the issue of implementing the trifurcation
model for the ailing SEB at bay.
The state government,
though still open to idea, wants the state sector entity to control the
distribution business. The experience of Orissa and Andhra Pradesh have not been
encouraging enough to prompt Gujarat to initiate similar reforms in this sector.
Orissa, which had trifurcated its state electricity board and opened up all
three to private participation landed in asoup after the super cyclone.
Compare this with Gujarat's experience of natural disasters. During the 1998
killer cyclone in Kandla and the earthquake on January 26, 201, GEB restored
power to the affected areas almost immediately. This, state source say, is
because the GEB, as a government entity, worried more about the well-being of
the people than its bottom line.
Courtesy Economic Times
18-1-2002
