Privatization of power sector has failed – AIPEF
V K Gupta
January 24th, 2014
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Privatization of power sector has failed – AIPEF
Friday January 24 2014
Bangalore
The privatization of power sector has failed completely due to poor planning and non participation of technocrats in decision making process, said Shaliender Dubey Secretary General of All India Power Engineers Federation (AIPEF).
Dubey was addressing the Karnataka power engineers on Power Engineers Solidarity Day at Bangalore. H Nagesh Director (Technical) BESCOM was the Chief Guest.
Dubey said that Delhi was the only state in country where there was direct privatization of Delhi electricity Supply Undertaking. The Government has been kind enough on Reliance and Tata ,the companies supplying power in Delhi , to sanction more than required power from central sector plants. The private entities surrendered the surplus power in the grid and earned hundreds of crore while other deficient northern states over drew the power from grid.
The private sector power companies showed losses every year on the basis of inflated bills and power purchase from their sister concerns at exorbitant rates. Tata has shown in its ARR that it purchased power from Rithala power house at Rs. 14.44 per unit even when the plant was not running.
Dubey further said that In 2010 DERC had pointed out that these companies were running in profit but Delhi Government refused to take note of this till the term of Vijender Singh DERC Chairman expired. Subsequently Delhi Government claimed that that tariff reduction proposal was not ratified by minimum required quorum. Now the Delhi Discoms have gone to High Court on technical grounds against the Delhi Government’s order to get the accounts of these companies from CAG.
It is interesting to note that Reliance which executed the 2X 300 MW Yamuna Nagar thermal with machinery from Shanghai China is generation power at Rs. 3.38 paise per unit but Reliance own 4X300 MW Rosa thermal plant with similar Chinese machinery is generating power at Rs.6.06 per unit and selling it to UPPCL.
Dubey said the Government awarded three Ultra mega power projects (UMPP) to Reliance but no tangible results have come out of these projects. Krishnapattam project is held up as Reliance has sought revision of power purchase agreement. At Sasan units are not being operated at full load by Reliance as tariff for first year is 70 paise per unit only. Government is not taking action against defaulting companies and is willing to give morebenefits.

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