Electricity Act 2003 has come into force with effect from June 10^th 2003.  If any state government desires, the repealed laws can be kept in force for another six months, by using the provision of the act itself.  The existing Electricity Boards can continue only upto June 10^th of 2004. The Government of India as per their promise in Rajya Sabha while getting the Electricity Bill 2003 passed, has brought out the Electricity (Amendment) Bill, 2003 which was passed on the last session of the Parliament of course ignoring the substance of almost all the so called unanimous recommendation of Parliamentary Standing Committee on Energy.

 This enactment is made to provide a legal framework for the total privatization of the Electricity Industry and as a prelude to unbundle the electricity Boards  and subsequent shift into the deregulation and market driven pricing of power.  The provision for open access to transmission system, de-licencing of generation, allowing multiple players in transmission and distribution, removing social control of power industry are the clear cut path of the notorious Enron founded American model of the Power industry.

 The Act leads  to the following among other things:

 1.                   The abundant water resources in the country can be exploited for minting profit by any private investor who gets statutory clearance from the concerned government department, which is easy for private capital in the present system.

2.                   The assets of electricity Boards will be handed over to private capital at a very concessional price as we have seen in DVB privatization.

3.                   Further rural electrification will be in doll-drums.  As this is a loss making business, no company can take up this task.  2/3 of the households in India are still to be electrified.

4.                   The issue of the transmission licenses will lead to fragmented transmission system, instead of integrated transmission system which will lead to opening up of anarchy in transmission system and may further lead to massive power failure as we saw in USA and Canada on August 15^th.

5.                   There will be Regulatory Commissions both in the center and state which are neither accountable to Parliament nor Legislative Assembly, with enormous powers.

6.                   By elimination of the subsidy, cost of power will become unaffordable to majority of Indian population, covering the lower middle class in urban and rural areas, public utility services like schools, colleges, transport, hospitals, sports complexes etc, agricultural sector and small-scale industry.  The cost of agricultural production including food crops will go high and consequently the whole population will be affected.  An illusion is created by the apostles of privatization that as a result of introducing competition among multiple players in the power generation, transmission, distribution and trade, the tariff will come down.  It is a false notion.  The National and International experience negates this propaganda. Only a small section of the people i.e., the affluent class get the advantage of it.

7.                   The definition of the captive power as per the provisions of the act enables those who can pay surcharge for providing supply, to escape from paying the surcharge and utilize the existing transmission system for bringing power from anywhere they like.

8.                   The service conditions of the employees will be affected both in public and private sector. Utilizing this opportunity, 50% of the staff reduction proposed by CESC management is a typical example in private sector. Recently in Delhi Power Sector 43% employees have been forced to opt for Voluntary Retirement Scheme at the face of  recruitment on low   wages on casual basis.

9.                   In order to manipulate the cost of installation to fetch higher tariff approved by the regulatory commission the private companies will be importing plant and machinery thereby creating adverse effect on the self-reliance of the country.

 10.               So the new enactment is to safeguard the interest of the big private capital both Indian and Foreign contrary to the dreams and vision of the freedom fighters and Nation builders.  The Chairmen, Parliamentary Standing Committee on Energy and a few of the chief ministers of the country brought many of the above criticisms. Even though in letter and spirit the intentions of Electricity Act 2003 are the above,

there are some provisions in the act itself which can be used in the present federal setup of the country to keep the erstwhile Electricity Board as a single entity.

                        The National Convention of Electricity Employees and Engineers demands that the Electricity Act 2003 be repealed/replaced and a new law should be brought to uphold the dominant role of CEA to suit the federal set up of the country, SEBs and CPSUs  in the interest of our National objectives “Power for all, Quality Power on demand and power at affordable rates”.  The Electricity  Boards should be kept intact as a single entity company/corporation till then to obviate the difficulties to the consumers, employees and the nation.  The convention also demands that sufficient budgetary support should be provided by GOI for power development to the states to achieve planned, balanced   development of the country.  This convention calls upon all the electricity employees of the country to involve in a massive campaigns and agitations exposing the evils of Electricity Act 2003 and fight back joining with the people at large including the peasantry to achieve the above goals.

RESOLUTION

General Secretary

Minutes of NCCOEEE meeting held at B.T.R. Bhawan,

New Delhi on 27-05-2005

Com. B.S. Meel presided over the meeting.

Other participants are Com. Mohan Sharma, Er. Shailendra Dubey, Com. A.S. Sodhi, Er. Sukhdev Singh, Er. J.D.Vegad (All India Federation of Power Diploma Engineers), Er K. Ashok Rao, & Er. O.P. Tevtia (All India Federation of Electricity Employees).

Com. Mohan Sharma briefed regarding developments in Maharashtra, and said though the decision regarding strike by the unions in Maharashtra is yet to be taken which may probably taken on 31^st of this month inspite of some two three unions agreeing with the government line.

After detailed discussions following decisions were taken:

1. A letter from Com. A.B. Bardhan and NCCOEEE be got addressed to Power Minister, GOI regarding violation by the Maharashtra Govt. of the spirit reached in the agreement with the Power Ministry by NCCOEEE on 17^th May, 2005, regarding restructuring of MSEB.
2. In case strike takes place in MSEB on 6^th June,2005 which is likely,

i)        Electricity employees and engineers will have the protest meetings in the state capitals  all over the country on 8^th June,2005 and walkout, and collective satyagrahas on 9^th June, all over the country.

ii)      The 11-member core committee of NCCOEEE will stage a dharna before Secretariat, Maharashtra Govt. on 9^th June’05 at Mumbai.

3. Regional conventions shall be held to mobilize the electricity employees in the month of August and September’05.
4. The schedule meeting of NCCOEEE on 5^th July,05 shall be an extended meeting ensuring participation from all over country of at least one office bearer from one union, to brief them regarding the background and understanding with the power ministry in the meeting on 17^th May’05 and to strengthen the NCCOEEE organization.
5. Expert’s be involved to conduct a  detailed study under NCCOEEE on Power reforms to be an input in review of the Electricity Act:2003 with Power Ministry.

 (B.S. Meel)

          Encl: Draft resolution                                      on behalf of NCCOEEE

The resolutions adopted in the working committee
meeting of EEFI held on 21-22 May, 2002
on New Delhi on different states
 
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1. RESOLUTION ON HARYANA

2. ON T.N. GOVT’s STRIKE BAN LAW AND ORDER ON USURPATION OF JOBS

3. RESOLUTION ON KERALA




 RESOLUTION ON HARYANA

State Govt. employees and teachers of Haryana have been struggling against the new economic policies of centre and state for the long time. They have been participating in the National level agitations i.e, Dharna, Rally, strike alongwith crores of employees and sections of society. It has come to our notice that state government of Haryana has accelerated the retrenchment, abolition of posts, closing down and downsizing the departments. It has retrenched 12500 employees and is going to retrench 4000 employees on next month and they have announced to retrench 5000 employees in next year. This is very serious that state government has plans to reduce the staff by one lac in next five years. The EEFI has taken a serious note that state govt. is not responding to requests of employees and particularly electricity employees for bilateral discussions. Instead of this the state government has imposed no work no pay on electricity employees and their annual increments have been stopped for the last three years on the grounds that these employees participated in strike Dharna rally etc. Nowhere in India such type of action has been taken. State government has transferred dozen of activists and office bearers of our affiliated union AHPC workers union.
 
The EEFI demands that state govt. should withdraw all steps of retrenchment and abolition of posts, should withdraw the policy of no work no pay and stop all type of victimization against employees.
 
EEFI has also viewed very seriously about the treatment the state Govt of Haryana is doing with farmers. It has broken down the agreement it reached with farmers in January last, has lodged false FIRs’ against farmers, has arrested dozens of farmers. The farmers of Haryana have been agitating on the demand of waival of 100% arrears of electricity bills which was promised by Chautala when he was in opposition. Govt. has banned holding of rally Dharna by farmers and two farmers have been gunned down when they were going to participate in rally.
 
EEFI feels that due to economic policies including the power policies of state and centre have adverse impact on the people. Large sections of the peasantry have become unemployed. Their cotton crop was damaged by AMERICAN SUNDI in previous year. This year also they have not received proper price of their produce.
 
EEFI therefore demands that the Govt. should withdraw all prohibitory orders and punitive measures, release all farmers and settle the dispute with the farmers through negotiations and the government must change their anti people policies.
 

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ON T.N. GOVT’s STRIKE BAN LAW AND ORDER ON USURPATION OF JOBS
 
The Working Committee Meeting of Electricity Employees Federation of India met at New Delhi on 21st and 22nd May, squarely condemns the new law enacted by the government of Tamil Nadu recently to totally ban the strike of workers in all the essential services including in electricity and Transport, the law imposes three years imprisonment or the fine Rs. 5000/- or both for those participate or support the strike, apart from disciplinary action to be taken by the management. The government order which was issued recently, will do away with more than 1,75,000 jobs in State Public Sector Undertaking through notorious Voluntary Retirement Scheme.
 
The working Committee brings home a pertinent point to AIADMK Government in Tamil Nadu that the existing provisions in the Industrial Disputes are more than sufficient for issuing notice by the Unions in the essential Public Utility Service. The newly enacted law tantamounts to the taking away of the trade union and democratic rights of the workers.
Similarly the announcement made by the state Government through an order dated 13th May is intended to do away with more than 1,75,000 jobs in state Public Sector Undertakings under the Voluntary Retirement Scheme. In reality the Scheme is a compulsory one, in as much as the orders stipulate a condition to the effect that the employees should opt for VRS within one month of the offer or else the employees would be eligible only for retrenchment compensation.
 
The working committee demands the Tamil Nadu State Government that the draconian law which prohibits the right to strike by the employees in the essential services imposes stringent punishments and the Government Order, which would do away with more than 1,75,000 jobs by the way of compulsory VRS, be withdrawn forthwith and this Working Committee decides to extend all the co-operation to the employees in the public sector undertakings in Tamil Nadu in their tight for trade union rights and the demands remain unsettled in view of the indifference attitude of the State Government.
 
Therefore we demand that the oppressive laws which are being pushed through must be withdrawn and the proposal for the slashing down of 1,75,000 jobs should be dropped.
 
We appeal to all the trade unions of Tamil Nadu to join together in a battle against the draconian laws and the inhuman attacks against the working class for forcing the government to reverse and change these policies.

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 RESOLUTION ON KERALA
 
The Working committee expresses its great concern and protest over the steps being taken by the government of Kerala in order to fulfill the conditionalities prescribed by the Asian Development Bank for sanctioning a loan of about 3500 crores. The government has already introduced a bill in the Kerala legislature which envisages privatisation of 22 sectors which are now in the public sector, including power, Drinking water, irrigation Dams, Roads etc,. A public enterprises commission has produced a report suggesting closure of all the loss making public sector companies together with the “surprising suggestion” for stopping of wage payment in these companies.
 
Labour, Industrial and IT policies have been declared in consonance with the Asian Development Bank directives which in sum proposes to take away the hard earned rights and privileges of the working class including job security. It is said that the KSEB is also to produce a white paper immediately. The conditions of which are available in the public press which in short is a declaration of war against the electricity workers.
 
They unilaterally propose to change the existing service conditions of the electricity Board employees which are based on the negotiated settlement. No civilized government dare to touch it without first discussing with the parties of the settlement or giving legal notice to the trade unions. The newly coined argument of the board is also “spacious one”. That is to “level down” the wages and amenities of the electricity workers to the level of the state government employees. Downsizing the number of workers which are fixed under agreed norms, thousands are going to be sent out and many places are to be filled up with contract workers for nominal wages. All these steps are against the advanced approach to industrial relations.
 
Besides imposing power tariff hikes and increasing of service charges of various types on the consumers which will end in general power rate increase to unaffordable levels. Needless to say that it will have adverse impact on the people of Kerala and force many industries of state to close down and a process of deindustrialization will set in.
 
We wish to warn the government that this will make Kerala an “ARGENTINA” and therefore demand to retrace from this disastrous route. We appeal to the workers of all industries to wake up and organize strong protest against this policy and force the government to get out of the Trap of Asian Development Bank conditions for saving the state.

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