All India Power Engineers Federation (AIPEF) - Completed 50 years & Moving Ahead with Steely Unity.
Today, when the Federal Council meeting of the All India Power Engineers Federation (AIPEF) is being held in Chennai, it is a matter of great pleasure for all of us that the All India Power Engineers Federation completed its 50-year journey on 17 August 2023. All India Power Engineers Federation was established in 1973 on 17th August.
The need for the establishment of AIPEF was felt the most after the historic strike in Uttar Pradesh in January 1973. The Power Engineers Association of Uttar Pradesh, UP Rajya Vidyut Parishad Abhiyanta Sangh successfully overthrew the IAS bureaucracy by a historic strike, and the management was handed over to the Power Engineers. The Uttar Pradesh strike was supported by the power engineers across the country in their way, but it was felt that there should be a national federation of power engineers, with this vision All India Power Engineers Federation under the chairmanship of the then Chairman of Punjab State Electricity Board, Engineer Harbans Singh was founded on 17th August 1973.
It is a milestone in the history of the organization to reach the mark of 50 years of its existence. Scanty resources, poor communication, and difficult travels have not deterred the spirit of the engineers' brotherhood. Hats off to the Founders Er.Harbans Singh,Er Bhupal Singh,Er R S Verma, Er.Shrikant Mane, Er R Chidambaram, and many more who fostered AIPEF. Still, it is veteran Er. Padamjit Singh & Er K Ashok Rao are guiding us and have inspired many Engineers to fight for Engineers' Dignity and National interest for decades. AIPEF now has a say in policies for the power sector. The untiring efforts of many stalwarts across the country have made AIPEF a force to reckon with.
AIPEF is the most well-known name in the power sector for media today, without which no power sector story would be complete. AIPEF today is not a mere paper organization, today it is a very powerful living vibrant organization, which neither the state governments nor the central government can ignore. Whenever leadership is needed in any struggle in any province, AIPEF is always ready to come on the front foot, fight there, and provide guidance till the goal is achieved. Long live AIPEF.
It is a matter of great pleasure for all of us because as a family of Power Engineers from Kashmir to Kanyakumari, from Kutch to Kamrup we are united under the umbrella of AIPEF. Here I would like to mention that although the All India Power Engineers Federation was initially a federation of the Association of Engineers of the State Electricity Boards of the country, later on, associations of Power Engineers of such states were also included in the AIPEF by making efforts where there were no State Electricity Boards. Most prominently the Association of Power Engineers of Jammu Kashmir, Ladakh, Puducherry, Tripura, and Chandigarh are today a constituent of AIPEF. All these places did not have electricity boards and power departments were/are there. Apart from the state associations, AIPEF has constituents namely the Central Electricity Authority Engineers Association, Damodar Valley Corporation Engineers Association, and BBMB Engineers Association. But still, the Association of Power Engineers of Nagaland, Arunachal, Mizoram, Manipur, Sikkim, and Goa are not constituents of AIPEF. It will be our endeavor that the Association of Power Engineers of all the States/Union Territories of the country become the constituents of AIPEF and under the umbrella of AIPEF, all the Power Engineers of the country unite as a family and move forward by stepping together
In such circumstances, when today we power engineers have gathered from across the country in Chennai, we are confident that today's meeting is not only historic, but the decisions taken in the meeting will also prove to be a milestone in the campaign to save the power sector. With this resolve today we all have gathered in Chennai with the slogan
"Save Power Sector - Save India."
Electricity (Amendment) Bill 2022 - LAPSED, But the Danger Remains.
Several attempts have been made by the Central Government to pass the Electricity (Amendment) Bill in the last 10 years. The Electricity (Amendment) Bill 2014 was tabled for the first time on 19 December 2014. It was sent to the Standing Committee. The report of the Standing Committee came in May 2015. The Standing Committee recommended segregation of carriage & content i.e. distribution and supply be separated in power distribution companies in the country and licenses for power supply be given to multiple private sector companies in any area. The private companies will not be obliged to build their network, the private companies will use the network built by the Government company. Private companies will not have the obligation of universal power supply. This means that private companies will cherry-pick and supply electricity only to profitable commercial and industrial consumers. Naturally, the loss-making farm sector and domestic consumers will be transferred to the account of the Government company, and the Government company by default will become a loss-making company. Thus Govt DISCOMS, already running in a poor financial condition, will become completely bankrupt. After this, the network of the Government company will also be handed over to the private companies at throwaway prices. This attempt could not succeed due to our strong resistance. Electricity (Amendment) Bill 2018 was introduced with slight amendments in 2018. This too could not be passed and the bill lapsed with the end of the tenure of the 16th Lok Sabha in 2019.
Electricity (Amendment) Bill 2020 was all of a sudden introduced in the 17th Lok Sabha during the pandemic. There was stiff opposition to this also from power employees & engineers. Irrespective of the restrictions of the pandemic, power engineers & employees held a nationwide demonstration and expressed their resolve to fight all the way. This bill also could not be passed. In the Union Budget 2021, the Union Finance Minister announced that now multiple power companies will operate in the same area and no license will be required for power distribution. Accordingly, the Electricity (Amendment) Bill 2021 was brought. This too could not be passed due to our opposition. A supplementary agenda to introduce Bill 2022 was suddenly issued during the monsoon session of Parliament on 06th August 2022 without any predetermined agenda. On the same morning, the bill was to be introduced, another supplementary agenda was issued on 08th August in which it was written that the bill would be introduced and passed. This was a very difficult time. But we did not lose courage. We had already educated all the main political parties in this regard and had sent the necessary documents. As soon as the bill came in the Lok Sabha, all the major political parties strongly opposed it. Very humbly I would like to say that the document that was in the hands of the protestor MP's was provided by us. There was such strong opposition that the bill could not be passed in the Lok Sabha and it was sent to the Standing Committee. At this time the Chairman of the Standing Committee was Sri Lalan Singh whose party had separated from the NDA alliance at that time. How hurried the Central Government was in passing the bill shows that after sending the bill to the Standing Committee, Sri Lalan Singh was removed immediately from the post of Chairman of the Standing Committee, and Sri Jagdambika Pal, who is an MP of the ruling party, was made the Chairman. Sensing all the adverse circumstances, we demonstrated strongly before the start of the winter session of the Lok Sabha on 23 November 2022. This demonstration was the biggest in Delhi by power engineers & employees to date. We continued the campaign to educate political parties. Also maintained pressure on the Standing Committee. The result was that the Government could not pass Electricity (Amendment) Bill 2022 even if it wanted to. Now the tenure of the 17th Lok Sabha is ending. The last meeting of the 17th Lok Sabha has taken place. In such a situation, this bill has once again lapsed.
It is historical in itself that in the last 10 years, the Central Government proposed the draft of the Electricity (Amendment) Bill five times but the Government could not succeed in two consecutive Lok Sabha tenures and the bill lapsed again, which has become a remarkable event.
We would like to humbly say that this is not a normal incident. However, the danger is not over. Elections for the 18th Lok Sabha are going to be held. After the elections a new Government will be formed and the attempt made in 16th & 17th Lok Sabha Can be made once again.
Therefore, we will have to organize with more strength and unity, educate all the political parties of the country form a united front with consumers, especially farmers and domestic consumers, and wage a decisive struggle in the times to come. We fought, we won, whenever we fight, we win, we will fight in the future too and we will win, this is our resolve and belief.
UNDUE PRESSURE TO IMPORT COAL
The challenges are not less and the power sector is facing all-round attacks. To find opportunities in disaster, the most recent case is the undue pressure on State Gencos to import the coal, the burden of which shall ultimately be passed on to common consumers. AIPEF in a letter to the Union Power Minister has said time and again that from a plain reading of Sec 11 along with the definition of Appropriate Government, it is concluded that the jurisdiction of Central Govt, in applying section 11 of the Electricity Act 2003, is limited to a generating company that is wholly or partly owned by it. In the case of State government-owned generating stations, it is the jurisdiction of the State Government in the matter of applying Sec 11.
The jurisdiction and applicability of GOI order is therefore limited to NTPC or NTPC JV since the appropriate Govt for State generating stations is the respective State Govt and not the Central Govt. Since State Generation Companies are in no way responsible for the coal crisis and its result of the utter failure of the Ministry of Power, therefore Ministry of Power must now take up the responsibility to import coal on Govt to Govt basis and ensure that the imported coal is made available to State Gencos at the prevailing CIL rates. For the coal shortage resulting from policy lapses of GOI, the States must not be penalized. For the policy lapses on the part of MoP, the financial burden must not be loaded on States by way of high-cost imported coal.
Central Govt direction says that because present PPAs do not provide for pass-through of the high cost of imported coal, the rates at which the power shall be supplied to PPA holders shall be decided by a committee constituted by MoP with representatives of Mop, CEA & CERC. This committee shall ensure that benchmark rates of power so worked out meet all the prudent costs of imported coal for generating power, including present coal price, shipping cost O&M cost, etc with a fair margin. The PPA holders shall have the option to make payment to the generating company according to benchmark rates so worked out or at mutually negotiated rates with GENCO. Payment shall be made to GENCO every week. Where State DISCOM is not able to enter into mutually negotiated rates with GENCO and is not willing to procure power at the benchmark rate worked out by the committee or is not able to make weekly payments then such quantity of power shall be sold in power exchange. Coal import shall continue till 30 June 2024. The present coal crisis has arisen due to the acute lack of coordination between the various ministries of the Central Government, Power, Coal, and Railways. Therefore, undue pressure and blackmail should not be put on the states to import coal and if the states are forced to import coal, then the central government should bear the additional burden of imported coal.
IMPORTED COAL & OVER INVOICING
Reports of over-invoicing of imported coal and power plants are time and again coming in leading newspapers. Since 2009 the DRI has been investigating allegations of over-invoicing of coal as well as power generation equipment. In 2014, the DRI issued show cause notices alleging over-invoicing of power plant equipment to the tune of Rs. 6,000 crores by several companies in the Adani Group. The companies were alleged to have indulged in a “trade-based money laundering scheme”. In 2015, the DRI issued show cause notices to the Adani Group, that the value of the equipment seized was more than three times higher at around Rs. 7,000 crores. In both instances, the mode of operation appears to have been similar. It is most unfortunate that after more than a decade no worthwhile action has resulted in this massive fraud involving lakhs of crores of rupees.
The Ministry of Power issued directions to thermal power stations running on imported coal to operate the units at full capacity up to 30/06/2024, for which additional coal should be imported, with the cost being passed on to the electricity consumers. AIPEF's viewpoint is that since the import of coal was necessitated in the name of shortage of domestic coal, it is stressed that additional (extra) cost of import must be to the account of Govt. of India, without passing on to states.
AIPEF demands that an independent inquiry headed by a retired Judge of the Supreme Court to investigate the irregularities in the import of coal, particularly by the Adani Group, immediate prosecution and conviction in cases of irregularities where investigations are enough to initiate criminal cases, and a ban on firing imported coal without the scientific blending of imported and Indian coals, so as not to damage the boiler and power generation equipment
PRIVATIZATION SPREE
The main objective of the Electricity Act 2003 was to privatize the entire power sector. Power generation was delicensed. Today the result is visible that the power generation of the private sector has become more than the power generation of NTPC and all state sectors. Power plants of about 36,000 MW capacity are lying closed. The whole country is suffering but there is no loss to private households because the rules are such that no matter for whatever reason the power plant is closed, the distribution companies have to pay the fixed charges. To privatize the transmission sector, the Ministry of Power has advised that 33 KV substations should be included in transmission and State Transco should form a joint venture with Power Grid Corporation. The meaning is clear, the central government would first establish its control and through this route, the transmission would be handed over to the private sector. Its first experiment was attempted in Jammu and Kashmir. I want to salute the brave engineers of Jammu and Kashmir for this. They came forward fearlessly and gave strike notice in a sensitive province like Jammu and Kashmir. The strike started and the result was that the Government came to the negotiating table and the MOU which was almost ready and was going to be signed with the power grid went into cold water. It was a brave fight. Now, a new tariff-based competitive bidding through the Regulatory Commission for the privatization of transmission is going on in different states. In this, different parameters have been/are being decided in different provinces. In Madhya Pradesh, a transmission project worth up to Rs 150 crore will be built through competitive bidding, and in Uttar Pradesh, it will be Rs 100 crore. With this, almost all the new transmission substations and lines being built will go to the private sector. This process is continuing. More than 35 transmission substations in Madhya Pradesh have been given to the private sector. This is a very dangerous development. If this is not stopped then within no time the entire transmission sector will go into the hands of the private sector.
Many experiments with privatization in electricity distribution were tried and all failed miserably. First of all, in Orissa, the Electricity Board was broken up and small companies were formed and privatized. In 2015, the Regulatory Commission canceled all licenses in the private sector alleging rampant corruption and lack of reduction in line losses. It is very unfortunate that instead of reposing confidence in the state sector in Orissa, Tata Power has once again been given the job of distribution company during the pandemic. After this, the second experiment was the Urban Distribution Franchise. Its failure is not hidden from anyone. It started in Maharashtra from Bhiwandi. In Maharashtra itself, the franchise agreements of Nagpur, Aurangabad, and Jalgaon have been canceled. The franchise agreements of Gaya, Bhagalpur & Samastipur in Bihar were canceled. In Kanpur, the franchise company could not even muster the courage to start work due to strong opposition from the employees, in such a situation the agreement had to be canceled. In Madhya Pradesh Ujjain, Sagar & Gwalior, the franchise agreement was canceled. This experiment also miserably failed.
After all these failures an attempt was made through the Electricity (Amendment) Bill to hand over the electricity supply to private households. As mentioned earlier, this also did not succeed due to our united and strong resistance. Overall, in one word, power generation, transmission, and distribution are under continuous attack in the state sector and new ways are being found to hand it over to private houses. For this, a standard building document was prepared. If we take a look at the standard building document, it becomes clear that the entire land will be given to the private company on a lease of Rupee 1 only. The private company will be given a clean slate, that is, the government will take over all the liabilities so that the private company does not have any liability. Not only this, the government will also provide financial support to the private company. The government will also provide the private company with cheap electricity from generators. This is a very ridiculous thing, if all this has to be done in the name of reforms then we would like to humbly say that if the government pays the electricity dues of government departments to the power distribution companies and gives all the due subsidy amount, then the discoms will automatically become profitable.
But their objective is very clear the power sector is a very big market, the biggest market and it is a market worth billions of rupees and this market has to be opened for private companies at any cost at the expense of the public. This is a fight for the survival of the power sector, this is a fight for the survival of the country. We are playing a leading role in the power sector, so we have to take a pledge that even in times of struggle, we will remain at the forefront, play a leading role, lead the struggle, and save the assets of billions of rupees of the power sector made from the hard-earned money of the common people.
GLORIOUS STRUGGLE IN STATES AGAINST PRIVATIZATION
Save the power sector is not just a slogan for us. Whenever and wherever there was a need, we came to the front line and fought fearlessly to save the power sector. We were successful in getting the cabinet's decision reversed, to give urban distribution franchises of five cities and six districts to private companies in the name of service providers in Uttar Pradesh. It is on record. Varanasi is the parliamentary constituency of the Honorable Prime Minister. Naturally, the decision to privatize Varanasi DISCOM would not have been taken without the consent of the Honorable Prime Minister. We opposed this too without caring and ultimately the Government came on the back foot and gave in writing that the decision to privatize Varanasi DISCOM is withdrawn and in the future, no decision of privatization will be taken in Uttar Pradesh without taking the power engineers & employees into confidence. There was a provident fund scam of more than Rs 4200 crore in Uttar Pradesh, we went to the streets and fought against it and the Government had to issue a GO taking the responsibility of compensating it through an interest-free loan to Power Corporation.
An MoU for a joint venture with Power Grid was going to be signed in a sensitive state like Jammu and Kashmir. Taking it back was not a normal thing. No one believed that it could be reversed, but it happened in Jammu Kashmir because of the brave approach shown by Power Engineers. During the pandemic, in 2020, the Union Finance Minister issued a decree that electricity should be privatized in all the Union Territories. For completing the process of privatization in all Union Territories the date line of 31 December 2021 was given. The bidding process also started in many union territories. The government was successful in handing over Dadra Nagar Haveli Daman and Diu to the torrent company, where we have no association and no union. But at other places, especially in Puducherry and Chandigarh, we went to the spot and led the struggle. Power workers in Chandigarh were arrested and dismissed but they did not bow down. More than 300 power employees were arrested at 11:00 pm in protest against privatization in Puducherry. The government had to bow down. The Chief Minister called for talks. The bidding process has not started till date in Puducherry. Despite the finalization of the bidding process in Chandigarh, the handover of Chandigarh to the private company could not take place. The struggle against handing over the O&M of the Sri Damodaram Sanjeevaiah Thermal Power Station (SDSTPS) to a private company continued for many months. It was a serious matter of concern that the State Government was considering a chosen private company to run the power station on a long-term basis, for no justifiable reason. From the technical reviews available from the Central Electricity Authority (CEA), SDSTPS has been operating on par with comparable units anywhere else in the country. The three 800 MW units at SDSTPS are among the first super-critical technology units supplied by BHEL in its effort to indigenize the technology for the higher unit size. Ultimately we succeeded and the AP Government was forced to take back its decision to hand over this power plant to a private company.
In Maharashtra Power Engineers & Employees came to the streets and finally, they resorted to 72 hours token strike. Maharashtra Govt had to bow down and the process of giving parallel license to Adani Power in Navi Mumbai has gone into cold storage.
It is also noteworthy that without the passing of the Electricity (Amendment) Bill 2022, the Central Government is continuing its privatization agenda through the Electricity (Amendment) Rules 2023/2024 from time to time. Large-scale privatization of transmission is going on in almost every province in the name of tariff-based competitive bidding. Despite Coal India having sufficient coal reserves, public sector thermal power plants of the states are being instructed to import coal. While a particular company is making huge profits due to over-invoicing in coal imports, the burden of increasing the cost of power generation is falling on the already financially poor power distribution companies of the state. Efforts to introduce a Parallel license in distribution at the cost of the State DISCOM network are also going on despite our protests. Odisha power engineers are fighting against private companies in adverse circumstances.
The silver lining in the said circumstances is the takeover of the Goindwal Sahib 540 MW thermal power plant by the Punjab Govt from GVK Power for only Rs 1080 cr. This is remarkable as it is the first time anywhere in the country that the State Govt has taken over a private power plant.
These examples are not mere examples. These are direct examples of the fact that whenever we have come forward with concrete facts and fought fearlessly on the streets, we have succeeded. Our only mantra is improvement and struggle to save the power sector.
UP Struggle -
A written agreement was signed with the Energy Minister of Uttar Pradesh on 03 December 2022. This meeting was presided over by a retired IAS officer, Chief Advisor to the Chief Minister. The Energy Minister did not follow this agreement. After waiting for 1 month, 2 months, and 3 months, a token strike notice was given by Sangharsh Samiti. During the strike, several rounds of talks took place with the Energy Minister. Finally, on 19 March an agreement was reached, the Energy Minister held a joint press conference with the Sangharsh Samiti and directed the Chairman of the UP Power Corporation to implement the agreement and withdraw all victimization as a result of this token strike, too was not followed. Power Engineers continued to raise voice against this, ultimately the then evil-minded Chairman had to go. Uttar Pradesh has a history where whenever there has been a strike by power engineers, at least the Chairman of the Power Corporation has had to step down. A new Chairman has come but he is also an IAS. Although restoration is taking place, still all the victimizations have not been withdrawn. The key office bearers remain suspended. Undue harassment is continuing. A State Vigilance investigation is going on against some key office bearers and a case has been registered under ESMA, the investigation process of which is now gaining momentum.
After any struggle, an agreement is made only with the Energy Minister and if the Energy Minister backs out of his promises, then what is the meaning of any agreement?
Another important development in this context is that before the agreement was reached in December, a PIL was filed in Allahabad High Court regarding power interruption. As soon as the token strike started on 17 March, this PIL was revived on 17 March, and all the power engineers & employee leaders were summoned by the Chief Justice of Allahabad High Court to appear in the High Court on 20 March. They all went to the High Court. The decision of the High Court on PIL has not yet come but whatever has been said and commented in the High Court raises a big question whether it is our right to strike in the power sector or not. This matter is pending in the High Court. The High Court has to decide how to recover the consequential losses of Rs 3326 crore from the strikers. The High Court has said that no matter how legitimate your demands may be, even if your demands are not fulfilled, you still do not have the right to go on strike. In such a situation, today we all have to consider that this case going on in Allahabad High Court in Uttar Pradesh can be a messenger for the entire power sector. The power engineers of the entire country will have to unite and fight this with full force by mobilizing all the resources.
OLD PENSION SCHEME
As upheld by the Supreme Court four decades ago, Pension is not a bounty, Pension is not a gift, Pension is not an ex-gratia payment and Pension is not paid on the sweet will of the employer. Pension is a fundamental right of Government Employees. Government has created two classes of power employees. One section of the employees, who were recruited before the unbundling of SEBs are governed under the defined and guaranteed pension scheme under the CCS (Pension) Rules 1972 (Now 2021), whereas the employees who were recruited after unbundling or after 01-01-2004, are subjected to the no guarantee Contributory Pension Scheme called as the National Pension System (NPS) or CPF or EPF.. Power employees cannot be left to the lurches of the market for their old age security. 20 years of experience in NPS has proved that NPS is a failed pension system and it cannot take care of the retired life of the employees even though the employee himself contributes 10 percent of the monthly wages to the pension fund. Pension from the NPS even after 20 years of service is only Rs.2000 to Rs.4000 per month without even inflation compensation.
On this issue, we have to form a joint action committee with Railway, Central, and State Govt employees. AIPEF is in touch with all the employee Federations and we should take appropriate decisions on time.
CHALLENGES AHEAD – REPRESSIVE MEASURES TO CRUSH DEMOCRATIC MOVEMENT
The year 2023 will be remembered for the highly undemocratic measures taken to suppress the movement of power sector employees by wrongly invoking ESMA and service conduct rules. Although in the power sector of Uttar Pradesh, ESMA has been continuously invoked through ordinance every six months for the last many years. The power workers and engineers of Uttar Pradesh are determined to face this injustice and oppression with determination.
There was a one-day strike in Madhya Pradesh in June. An indefinite strike took place in October due to non-compliance with the agreement reached after the one-day strike. A day after the strike, all the key office bearers were given a show cause notice in the name of violation of ESMA and service conduct rules.
Notice of “Dies - non with a break in service” was served to key office bearers of the Engineers Association. This means that the entire service done till now will become void. This is a kind of termination of service. This act of repression and the ongoing developments in Uttar Pradesh are a big challenge for the Power sector employees across the country in the coming days. ESMA will continue throughout the year and if this extent of repression is imposed then the era of democratic movements in the power sector will end. We all have to face this challenge together.
UP & MP tactics may be adopted in any other State in the future as bureaucracy is the most organized.
CLARION CALL FOR DECISIVE WAR AGAINST Privatization
ARISE, AWAKE, FIGHT & STOP NOT TILL GOAL IS ACHIEVED
Today, as we all have gathered here for the Federal Council Meeting of AIPEF, the most challenging times are before the Power Engineers. The way central government is bent on eliminating all the public sectors one by one on the strength of a thumping majority and has also started the process of dismantling it in a planned manner, in such a situation, stopping the privatization is the biggest challenge.
The biggest danger is that if the Electricity (Amendment) Bill is tabled again and passed, then there will be no need for any tender or bidding for privatization in the distribution sector. It is a DO OR DIE for us and a NOW OR NEVER situation. Therefore, I would like to call upon all of you to prepare for a mass movement by mobilizing the power workers with you and taking the cooperation of the consumers of electricity. It seems that a big bang is needed in the power sector to stop the present policies. This explosion is possible only through mass movement. We should be prepared for an indefinite strike as well as prepare for Jail Bharo Andolan.
Dr Ram Manohar Lohia used to say that when the road becomes silent, the Parliament becomes a vagabond. Dr. Lohia's words seemed to be fully realized now. There is an old saying that if you want peace, be prepared for war. In today's federal council meeting, I call upon all of you if the power sector is to be saved, and if we want peace in the power sector, we should start preparing for war. We gave the slogan Save Power Sector - Save India. This is in a way the second fight for freedom. We will have to run our revolutionary struggle by being drenched in this spirit of patriotism.
AIPEF ZINDABAD - LONG LIVE AIPEF
# SAVE POWER SECTOR - SAVE INDIA
Inquilab Zindabad