Scrap privatization of power distribution in UP- AIPEF
V K Gupta
January 19th, 2014

Scrap privatization of power distribution in UP- AIPEF
Sunday January 19 2014
All India Power Engineer Federation (AIPEF) has written to Chief Minister Uttar Pradesh to scrap Government’s decision to privatize the power distribution of four cities Ghaziabad, Meerut, Kanpur and Varanasi.
It may be mentioned that UP power engineers under the aegis of UP Vidyut Karamchari Sangharsh Samiti has served notice to boycott work for two days followed by total strike on February 19 to privatize the power distribution of four cities.
Uttar Pradesh Power Corporation Limited (UPPCL) has made Power Grid and MECON as technical advisers to speed up the process of handing over the power distribution of 4 cities namely Ghaziabad, Meerut, Kanpur and Varanasi to private parties through franchisee.
Shaliender Dubey Secretary General AIPEF said that in case the state government changes its stand the engineers and employees of Uttar Pradesh will be forced to launch agitation from next month.
Dubey claimed that Principal Secretary (Power) on May 28 last year had given in writing that the power distribution in the said cities will not be handed over to any private company. Now with the appointment of technical advisers UPPCL is going back from its commitment.

V K Gupta a spokesperson of AIPEF said that all the four cities are very high revenue earning areas and revenue realization per unit of electricity sold in these cities is much higher than average revenue realization of UPPCL of Rs. 3.05 per unit. If privatization is being done in the name of losses then why profit earning areas are being privatized which will result into more losses for UPPCL.
After three years of urban distribution franchisee of Agra, UPPCL is incurring huge losses. Even CAG report has clearly established that UPPCL is incurring very heavy losses in Agra after power distribution was handed over to Torrent through franchisee.
Urban distribution of greater NOIDA was handed-over to private company but even after 20 years of agreement. UPPCL is supplying power to franchisee at lower rates than its purchase cost, thus incurring huge losses.

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