Vijayawada: Is Centre pushing the states to privatise power distribution companies? Raising the red flag, the All India Power Engineers Federation (AIPEF) has alleged that Centre has almost put the states on notice to switch their discoms to the privatisation mode in guise of mounting debts. The AIPEF has strongly opposed the Centre’s reported move to force states into privatizing their power distribution companies (DISCOMs), calling it “blackmail in the name of reforms.”According to the AIPEF, Centre’s Group of Ministers (GoM) asked the states to choose one of three privatization models or risk losing central financial assistance. The move came at GoM meeting held on Oct 10—attended by energy ministers from Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu. AIPEF chairman Shailendra Dubey and secretary general P Rathnakar Rao expressed deep angish over the meeting’s minutes, stating that no form of privatisation would be accepted. “This coercive approach undermines the federal structure and threatens the public electricity system,” they said, vowing to launch a nationwide protest. As per the minutes, the Centre proposed three routes toward privatization — selling majority equity in discoms to private firms, handing over Discom management to private players, or listing the corporations on the stock exchange through SEBI. In all three cases, the govt would assume the burden of unsustainable debt and extend financial support to the privatized or listed entities, either as long-term zero-interest aid or time-bound grants. AIPEF argued that these offers were nothing but incentives to attract private operators at the cost of public ownership. The federation also objected to the invitation extended to the All India Discom Association to attend the GoM meeting, questioning its role and legitimacy. AIPEF has long alleged that the association functions as a bridge between private companies and policymakers to facilitate privatization. “Their inclusion in such a crucial meeting only confirms our fears that the process is being driven by vested interests,” Dubey said. The AIPEF warned that the decisions taken by the GoM clearly indicate ongoing preparations to privatise power distribution across states. To counter this, a joint strategy meeting of all electricity employees and engineers federations under the National Coordination Committee of Electricity Employees & Engineers (NCCOEEE) will be held in Mumbai on Nov 3 to plan nationwide resistance.
