Power sector staff to go on 72-hr strike after Adani seeks parallel distribution licence in Maha

86,000 power sector employees in Maharashtra are set to go on a 72-hour-long strike in protest against the privatisation of the power distribution biz
Power sector staff to go on 72-hr strike after Adani seeks parallel distribution licence in Maha
Power sector staff to go on 72-hr strike after Adani seeks parallel distribution licence in Maha

New Delhi: Around 86,000 power sector employees in Maharashtra are set to go on a 72-hour-long strike starting midnight in protest against privatisation of the power distribution business. The news comes in the backdrop of Adani Electricity Navi Mumbai Ltd, a subsidiary of Adani Transmission, applying to the Maharashtra Electricity Regulatory Commission (MERC) for a parallel licence for power distribution in areas which are presently under the jurisdiction of state-run Mahavitaran, like Bhandup, Mulund, Thane, Navi Mumbai, Panvel, Taloja and Uran areas.

Maharashtra State Electricity Distribution Company Ltd (MSEDCL), or Mahavitaran, is a wholly-owned corporate entity under the Maharashtra government.

Electricity workers across India to hold protest meeting on Jan 4

"Electricity workers in all the provinces of the country will hold a protest meeting on January 4. No power employee from any province of the country to do duty in Maharashtra during the strike," said the All India Power Engineers Federation (AIPEF) on Tuesday.

Power sector employees demand that Adani not be given parallel licence for distribution in MSEDCL's areas

"Maharashtra's 86,000 electricity workers are going on a 72-hour strike from the midnight of January 3 to protest against privatisation. The National Coordination Committee of Electricity Employees and Engineers has announced nationwide support for the strike by the electricity workers of the whole country," said Shailendra Dubey, chairman of AIPEF. He added that the National Coordination Committee of Electricity Employees and Engineers has demanded from the Chief Minister of Maharashtra that Adani Power should not be given licence in the areas that come under MSEDCL's jurisdiction.

The unions have also demanded that the government of Maharashtra clearly present its stand in the Electricity Regulatory Commission of Maharashtra so that Adani does not get the license to distribute electricity in areas where MSEDECL is successfully doing the work of electricity supply.

Electricity Amendment Bill, 2022 vs Electricity Act, 2003

According to Electricity Act 2003, a second license for power distribution can be given in the same area but on the basic condition that the company has to build its own network in the area where they are seeking a licence to supply electricity. Adani Power does not have any infrastructure or network of its own in the areas where it has sought a licence, said the AIPEF.

"Adani Power intends to supply electricity only to profitable areas using the network of the Maharashtra Electricity Distribution Company. Electricity workers have objected that in such a situation the private company will do cherry picking using the network of the government company and will snatch the profitable industrial and commercial consumers from the government company. The result will be that the government company will become financially poor and the government company will neither have the money to buy electricity nor will it be able to provide electricity to the common poor consumers," the AIPEF said in a statement.

Describing it as a big conspiracy, the AIPEF has said that the Electricity (Amendment) Bill, 2022 provides for the grant of parallel licences to power distribution companies without the need for them to have invested in developing power distribution network. "It is currently under consideration before the Standing Committee. But the provision of Electricity (Amendment) Bill, 2022 is being implemented indirectly by giving license to Adani Power in Mumbai without building its own network, which is completely wrong and unacceptable," said Dubey.

He said that like Adani, Torrent Company has also applied for licenses in Pune, Kalyan, Pimpri Chinchwad, Vashi and Chakan, and Tata Power has expressed its desire to take over power distribution of Aurangabad and Jalgaon on PPP model.

"Maharashtra's electricity workers are going on an indefinite strike from January 18. In view of such a situation, the National Coordination Committee has called upon the electricity employees of the entire country to remain alert and ready to take strict measures at any time," said the AIPEF.

(PSU Watch– India's Business News center that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

logo
PSU Watch
psuwatch.com