Addressing a conference of States Energy Secretaries in Shimla, the Prime Minister Shri Man Mohan  Singh stressed unbundling of SEB’s which is deplorable.  His desire to discontinue free power to needy agriculturist is suicidal putting food security at stack.  This is consequent to the ‘hide and seek’ play carried out by the power ministry inspite of four rounds of discussion with NCCOEEE even after our discussion with the Prime Minister on 7th September, 04 and submission of a detailed memorandum in this regard.

It appears at the behest of the Prime Minister, the Power Ministry under the secretaryship of Shri R.V. Shahi is pressuring the reluctant state governments to unbundled the state electricity board and privatize it, saying that unless they do it they will be denied of funds to Accelerated power development and reform programme. The power ministry is discarding the common minimum programme which include the review the Electricity Act, 2003.

            The experience of one and half decade of implementation of neo-liberal policies in power sector and its legal frame- work the Electricity Act, 2003 unequivocally points out that it badly affects the availability, accessibility and affordability( because of repeated tariff shocks) of Electricity to majority of Indian people except a few can resort to luxuries, the power shortages are going to stay and become standard.  It also deteriorates and weakens the power system and service.  It takes away the rights of the state governments.  Electricity being a basic infrastructure facility, this state of affair is affecting the overall development of the country in a big way.  The act also    provides for the total privatization of the power sector and subsequent shift to the market driven pricing of power, which again is suicidal to vast majority of people.

The new liberal policy in power sector is essentially directed against the power employee, marginalizing their role in the industry, their rights.

            The speed with which the Maharashtra Government has taken a decision to unbundled MSEB inspite of the fact that the power ministry entered into an Agreement with NCCOEEE on dated 17th May, 2005 that the unbundling SEB’s will be examined in process of review of the Act based on impacts of our experience of unbundling since 1996. This action is violation of the spirit reached in the aforesaid agreement.

It is to be presumed that the government of India is in a hurry to safeguard the interest of big capitalists like Ambani’s and Tata’s, as is being done now in U.P. The NCOEE will oppose and fight back the liberal logic in power sector tooth and nail.  

                                                                                                          (B.S. MEEL)

                                                                                                            Convenor