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Against proposal of unbundling of J&K Power Sector 18 - 10 - 2019

Posted On : December 20, 2019
Kindly refer to All India Power Engineers Federation (AIPEF) letter No. 26 - 2019 dt 11-09-2019 and letter No 28-2019 dt  23-09-2019 sent to you to kindly defer any proposal of unbundling of J&K Power Sector.
2. In continuation to above referred letters AIPEF further requests you to kindly shelve the proposal of unbundling of Power Development Department of J&K in view of following points in addition to points raised in previous letters sent to you --
a. Unbundling of Distribution , Transmission and Generation is not mandatory as per Electricity Act 2003. Kerala and Himachal Pradesh are states who continue as integrated utility in the name of KSEB Ltd and HPSEB Ltd respectively. Both the states have shown remarkable improvement under integrated system .
b. Mere Unbundling has not yielded any result to improve the system in any of the states. Improvement is possible by strengthening the system only which can be done better in integrated utility.
c. Every state has one SLDC where the entire state is considered as one control area. This gives SLDC a clear advantage to manage load dispatch over the state as one entity. For example if there is load crash in one portion of state (due to rain, storm etc.) SLDC can  order additional supply or loading in other areas of state to offset load crash, so that overall drawl by State remains without deviation.
d. With one state Discom concept the state  hydro generation can be optimally dispatched by SLDC in the most economic and optimum manner.
e. In regulatory matters of state level, and dealing with SERC, it is practically effective with one Discom and generation and transmission combined. Creation of multiple units only complicates SERC issues.  
f. Similarly, in dealings with CERC and APTEL etc. it is practically possible and justified considering the state as one entity. 
g. Manpower and HR functions are performed more efficiently and with uniformity with one organization as opposed to multiple companies.
h.  Since electricity is a concurrent subject, it would be incorrect to carry out drastic changes in the Electricity Department of J&K when the State assembly has not been formed. It would be against the Constitution of India to ignore/ bye pass the State Government/ State Assembly on a concurrent subject where the State has an equal right as compared to the Central Government.
3. In a situation where the State is under President rule & where the elections to the State Assembly have not been held, it would be against the Constitution to ignore the public opinion and opinion of electricity consumers in the matter of unbundling / privatizing the State Power Department. It is against democracy and against the Constitution of India.
4. Therefore you are kindly requested to issue directions to Power Department authorities  to restructure the power department so that  all  power utilities (Distribution,Transmission & Generation) remain integrated as one company like neighbouring hill state Himachal Pradesh in the larger interest of state for better coordination and better consumer service.

 

 

Thanking you.  With Regards.

 

Yours faithfully

 

Shailendra Dubey

Chairman

 

CC.

1. Hon'ble Prime Minister, Govt Of India, New Delhi.

2. Hon'ble Power Minister, Govt Of India, New Delhi.

3. Chief Secretary, J&K Govt., Srinagar.

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The body alleged that this is a clear attempt to introduce privatization through the backdoor and deserves to be scrapped. The purpose of the central government is not to review or revise the existing National Electricity Policy but the total replacement of existing policy with a new policy to be recommended by the expert group so as to achieve privatization, the body alleged. As per Electricity Act 2003, National Electricity Policy is to be prepared in consultation with the state governments and Central Electricity Authority (CEA), a statutory body. However, the body said that the CEA is not included in the proposed schedule of discussion. Further, only 5 states have been included in an expert group instead of all the states, it added. K Subramanian, Chief Economic Adviser, has stated that India is the only country that readily implemented a slew of reforms and used this crisis to herald a change in India''s economic thinking, it said. The strategy of government seems to be “never waste a crisis” and use the crisis of pandemic to streamroll so-called reforms by way of privatizing, it alleged. The draft proposal is of serious nature for which the present situation of a pandemic is a serious constraint, it stated. The Ministry of Power has once again found peak pandemic time as an opportunity in crisis to launch the draft amendments to National Electricity Policy, it lamented. Once the draft policy is finalised, the notified policy would have the status of “subordinate legislation”, and for this reason, the matters need to deliberate as in the case of the legislation itself or as in the case of amendment in the Act itself, it opined. Draft national electricity policy is pushing for more private participation in the power sector and launching sell out of public assets as at Chandigarh and Dadra Nagar Haveli, it noted. The preferred route being suggested are failed models like the franchisee system, transferring distribution responsibility to a private party, and separation of carriage (lines) and content (supply) business, it opined. Since the existing Policy is in force since February 2005 there was no emergency to totally replace it, while power engineers and workers as front line workers are already stressed in maintaining power continuity, it added
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