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State discoms needs financial help - AIPEF Mar 27, 2020

Posted On : April 10, 2020

All India Power Engineers Federation (AIPEF) had demanded from central government to come to the rescue of Discoms as they are facing adverse financial implications following complete shut down of industrial, commercial and railways due to lockdown.

AIPEF hs written a letter to Prime Minister that power demand in the state  across  the country has come down by  20 to 30 % and their major source of income from high end earning sources like  railway, industrial and  commercial consumers have been blocked due to shut down.
V K Gupta a spokesperson of AIPEF said that this containment measures have resulted in a sudden fall  in electricity  bill  collections of the DISCOMS by 80% over the last few days.

The sudden fall in collections has resulted in the inability of  DISCOMs to make daily payments not only to generators which in turn is affecting the coal payments and coal transport by  railways, but also debt servicing to banks and financial  institutions. Under these adverse conditions, Discoms may be allowed to defer  LC Payment to private generators until the crisis continues. At all India level, the power demand and supply  has come down by 20%
 due to lockdown.

Daily release of payments to generators and to coal suppliers, will be becoming a challenge for the DISCOMs.  Indequate funding support for the power sector would lead to its failure and unnecessarily impair the economic prosperity of the country once the health crisis has passed.
 RBI may be requested to issue instructions to the banking sector to extend the time to the Discoms for repayment of the debts and interests.

 

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  5. All India Power Engineers Federation on Tuesday condemned the central government''s move to amend the National Electricity Policy "to facilitate privatisation". According to a statement by the AIPEF, the proposed changes require extensive discussions as such time for submission of comments should be six months. When fundamental changes are being introduced by way of privatization of the power sector, there is no basis to rush through more so under extreme distress caused by the COVID-19 pandemic, it said. "All India Power Engineers Federation (AIPEF) condemns the government of India''s move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said. 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 All India Power Engineers Federation on Tuesday condemned the central government''s move to amend the National Electricity Policy "to facilitate privatisation". According to a statement by the AIPEF, the proposed changes require extensive discussions as such time for submission of comments should be six months. When fundamental changes are being introduced by way of privatization of the power sector, there is no basis to rush through more so under extreme distress caused by the COVID-19 pandemic, it said. "All India Power Engineers Federation (AIPEF) condemns the government of India''s move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said. 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