Privatisation will lead to layoffs, staff reversion and higher rates

The Uttar Pradesh Power Corporation Ltd's (UPPCL) recent proposal to privatize its two most loss-making discoms, Dakshinanchal (Agra) and Purvanchal (Varanasi), has evoked sharp reactions from employees' unions that have launched agitations, demanding a rollback of the plan, while both sides present strong arguments.

- Brajendra K Parashar

Shailendra Dubey, chairman of the All-India Power Engineers' Federation and convenor of the UP Sanyukta Sangharsh Samiti, a coalition of 16 trade unions, shared his perspective on this contentious issue in an interview with Brajendra K Parashar. Excerpts:

After a prolonged lull, the idea of privatizing electricity distribution has suddenly resurfaced in UP. How do you view this development?

Privatisation of power in UP is not sudden. In April 2018, five cities (Ghaziabad, Meerut, Lucknow, Varanasi, and Gorakhpur) and seven districts were slated for privatisation, with tenders issued. However, protests led to a rollback. In September 2020, during Covid, Purvanchal Vidyut Vitaran Nigam's unbundling and privatisation were proposed. Employees protested, and a written agreement with the cabinet sub-committee, led by ministers Suresh Khanna and Shrikant Sharma, ensured no privatisation would occur without employee consultation.

Why the opposition to reforms, and what are your apprehensions?

This is not reform, but an imposition of a failed model. It will lead to mass layoffs, employee reversion, and higher electricity rates. Cherry-picking of consumers will also occur, favouring industrial and commercial users while neglecting subsidised domestic and agricultural consumers.

The UPPCL has issued FAQs twice seeking to address all the concerns. Your comment?