Thursday, July 02, 2020


AIPEF seeks discussion on changes in power distribution

January 31, 2020 11:53 AM

CHANDIGARH:All India Power Engineers Federation (AIPEF)  has sought the time for broad discussion from the union power minister on any legislation move aimed at ‘privatization’ of electricity supply through back door entry.
AIPEF in a letter to R K Singh The Federation underlined that the financial stress in the power sector could not just be blamed on Discoms alone and there should be independent and multidimensional analysis on the subject to take corrective measures.
V K Gupta Spokesperson AIPEF said that as per newspapers report the government is going to introduce another bailout scheme Atal Distribution System Improvement Yojana, or Aditya following the failure of the earlier bailout package  "UDAY", with a grant of over Rs 1.1 lakh crore that would mandate Discoms with high losses to either privatize operations or appoint distribution franchisees plan for Discoms.

In the first part implementation of smart metering by the Discoms with 25% grant of center and state government will be completed. In the second part Discoms would be required to undergo institutional reforms in the form of the franchise to avail investment support. The Discoms will have to choose to either operate under a public-private-partnership model or supply power through multiple franchisees within nine months of joining the scheme.
The letter mentions that there should be a review of the Electricity Act 2003.  Electricity Act 2003 removed the techno-economic approval of the central electricity authority (CEA)  the consequence was 34 stressed thermal power plants. Induction of large scale renewable energy solar power plants is being done without concern for the economics of transmission and Grid stability.
The AIPEF in its letter has alleged that there is a systematic dilution of the role and responsibilities of the State Government and the Bill should be modified to create a GST council type of structure so that the States and Center can play a vital role in policy/decision making.
The revival of the power sector is central to the development of the country, but the lopsided reforms carried out by the Government of India during the last  two decades have failed to accelerate the development, ” said VK Gupta

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