Tag Archives: AIPEF

Probe below par performance of Sasan UMPP – AIPEF

Probe below par performance of Sasan UMPP – AIPEF
Monday June 2 2014
Chandigarh
All India Power Engineers Federation (AIPEF) has demanded a probe in to below par performance of Sasan UMPP. Reliance has commissioned the fourth unit of Sasan UMPP on May 27 but the performance of three units already commissioned is below par. Out of 6 units now units 5 and 6 of 660 MW each are yet to be commissioned.
During the first two months of current financial year the plant load factor of units was 68.38 % whereas it was just above 58% in last financial year. The first unit of thermal plant was commissioned in August 2013, second in January 2014 and third in April 2014.
There are seven States having power purchase agreement with Reliance. Madhya Pradesh is to get 37.5 % of power generated from plant , Punjab 15%, Haryana and Delhi 11.25%, UP 12.5% , Rajasthan 10%, and Uttarakhand 2.5%The power to be supplied in the first two tariff years is at about 70 paise per unit while the levelised tariff over 25 years is 119.6 p/unit.
AIPEF has written to Union Power ministry that Central electricity Authority must investigate the continuous poor performance of Sasan since the procurer states are losing energy at 70 p/unit. In States like UP where there is acute energy shortage the poor performance of Sasan adds to the quantum of power cuts.
For the current financial year up to 31 May the scheduled generation is 1802.058 million units (MU) with PLF of 68.38% against the minimum requirement of 80%.The PLF of UMPP could easily be around 95% and as such the plant could have generated 2503.686 MU. Thus there is a shortfall of 689.812 MU power availability for procurer state.
The shortfall in power availability for individual states is Madhya Pradesh ( 258.7MU) ,Punjab (103.5MU) ,Delhi & Haryana (77.6MU) ,UP (86.2MU ) , Rajasthan (69MU)and Uttarakhand ( 17.2 MU) respectively.
During the last financial year the declared capacity from Sasan was just 59%.The Sasan UMPP from August 16 to March 31 the station has delivered 2526.224 Million Units (MU) as scheduled energy with plant load factor being 58.30 % against 3466.30 MU with 80% PLF.
Padamjit Singh Chief Patron of AIPEF said that said that while the market rate of power is around Rs 4 per unit the first year tariff of Sasan is 70 p/unit. The financial impact on procurer States on account of reduced availability from Sasan is Rs 3.30 per unit.

AIPEF demands review of power sector reforms

AIPEF demands review of power sector reforms
Sunday June 1, 2014
Lucknow

All India Power Engineers Federation (AIPEF) has requested the Prime Minister to constitute a high power technical committee of experts under his leadership to review the power sector reforms and to recommend corrective measures to make it vibrant.

AIPEF in a letter to Narinder Modi Prime Minister of India has claimed that due to wrong energy policies of UPA Government country could not achieve the target of “Power to All by 2012″ .

V K Gupta a spokesperson of federation said that the very purpose of changing Electricity Act in 2003 was to reduce the losses in power sector, improve the financial health of the sector & reduce the subsidy burden of Government .But due to faulty implementation of policies the contrary has happened. The financial health of power sector has further deteriorated & Government is now even subsidizing private Discoms. The most serious effect of wrong energy policies even banking sector may collapse under the burden of non-performing assets being generated by power Sector.
AIPEF in its letter has alleged that on the generation front the concept of achieving low tariffs through competitive bidding in Ultra Mega Power Projects (UMPP) has been completely defeated by the changes made in terms of reference after award of contract by giving various concessions to successful bidders.
The coal shortage coupled with import of coal and increase in prices of natural gas is going to push up the tariff further. The performance of thermal plants with imported equipment is not up to mark and this is especially true in case of Chinese equipment.
While there are shortages of power in southern states, state owned power plants in West & North are being shut down due to lack of load. This is in spite of the fact that physical infrastructure of power transmission exists to transfer power from one region to other.
On distribution front creation of multiple agencies is adding cost at every level which ultimately affects consumer. The franchisee experiment has not been able to give desired results as all the franchisee is committing gross financial irregularities.
Private Discoms are not being subject to any scrutiny as such these Discoms are adding cost by purchases at very high cost from their own sister concerns which is ultimately burdened on consumer.
Further autonomy & independence of Electricity Regulators has been completely eroded as it has been captured by vested interests due to interference by state Government even in case of tariff matters. Most of regulatory commissions are headed by retired bureaucrats who are enjoying all powers without any responsibility.

Do not scumb to Reliance pressure – AIPEF

AIPEF criticizes blackmailing tactics of Reliance
Monday May 12, 2014
New Delhi
All India Power Engineers Federation (AIPEF) has appealed to BJP’s PM candidate Narendra Modi to intervene against sinister design of Reliance who has served an arbitration notice for delaying revision in gas prices from domestic fields of KG-D6.
Shailendra Dubey AIPEF Chairman said that AIPEF is of the firm opinion that no blackmailing should be tolerated and Reliance and its partners be handled with heavy hand.
Shailendra Dubey said that due to gas price hike power tariff will be unviable for Discoms and move hampering the common man’s interest may be thwarted before taking over of new Government. He said that in light of observations rose by Central Electricity Authority (CEA) in response to the oil Ministry’s notification on gas pricing policy it becomes more important that no haste step should be taken when elections are almost over & new Government may takeover in next 10 days.
Shailendra Dubey said that as per CEA higher gas price from April 01 would turn electricity from gas fired plants unaffordable for state Discoms as power tariff would rise to Rs. 6.50 to Rs. 7.50 per unit which is presently in the range of Rs. 4 to Rs. 4.50 per unit.
He said that gas fired power plants make up about a quarter of the installed generation capacity in the country, therefore immediate intervention is necessary to save the gas power plants which may be switched off completely due to commercially unviable power cost.
It may be added that CEA has raised the issue of natural gas pricing in Dollar which will also affect Discoms as power plants pay in Rupees while due to Dollar prices of gas they are susceptible to foreign exchange fluctuations and consequently fluctuations in power tariff.
Dubey alleged that the arbitration notice of Reliance is a as blackmail tactic just before taking over of new Government and will give Reliance additional benefit of Rs. 50000 crore per year while power tariff will go up by Rs. 02.00 to Rs. 2.50 per unit.
He further alleged that RIL deliberately did not supply sufficient gas to power plants in 2013-14 due to which about 21000 mega watt capacities of gas plants suffered but instead of levying penalty Government has doubled the gas prices.

AIPEF opposes move to dismantle DVC

AIPEF opposes move to dismantle DVC
Tuesday April 29, 2014
Chandigarh
All India power Engineers Federation (AIPEF) has urged the Prime Minister to stop the game plan of Arup Roychudhary NTPC Chairman who also holds the charge of Chairman Damodar valley Corporation (DVC) and is awfully keen to get 1320 MW Katwa project and for which he is prepared to sell DVC Transmission assets to West Bengal..
Arup Roychoudhry CMD NTPC is keen to start work on Katwa project of 1320 MW in West Bengal at the earliest. However this can be possible only with the consent of West Bengal Government and for this West Bengal is demanding that as a pre condition DVC must hand over its 220 KV and 132 KV transmission system in West Bengal area to it.
This is a glaring case on misuse of authority on part of CMD NTPC to sell off DVC transmission assets ( misusing his position as CMD DVC) just in order to help NTPC get business of executing a 1320 MW project..Katwa. How an officiating chairman can take such major policy decisions without seeking the consent of other stake-holders, said Padamjit Singh, Chief Patron of AIPEF.
Arup Roychoudhry who is holding the dual charge of Chairman DVC has not used his expertise or resources of NTPC to help the DVC thermal projects in trouble. While DVC Raghunathpur project is stalled and 4 years behind schedule the priority of Arup Roychoudhry is to grab Katwa project for NTPC.
AIPEF in its letter has alleged that Chairman DVC it is not fair to favor one stakeholder West Bengal while putting Jharkhand to disadvantage and while ignoring the Government of India which is third stakeholder.
AIPEF has urged the Government to Since the selection process of new Chairman DVC had been completed GOI must appoint the new Chairman DVC whose selection process has been completed so that further damage to DVC can be avoided.
At a board meeting held in Calcutta on April 21, DVC top brass discussed the proposal to hand over high tension transmission and distribution systems in Bengal along with its existing consumers to West Bengal State Electricity Distribution Company Limited.
It may be mentioned that the DVC was formed by an act passed by Parliament in 1948. Its ownership is shared proportionately by the Centre, Jharkhand and West Bengal. Its assets, therefore, cannot be segregated on the basis of geographical presence. If done, it would go against the very purpose of DVC’s formation.

AIPEF writes to Modi on power sector reforms

AIPEF writes to Modi on power sector reforms
Wednesday April 16, 2014
Chandigarh
All India Power Engineers Federation (AIPEF) in a letter to Narinder Modi has suggested that a high level committee be constituted to review the power sector reforms and recommend corrective measures to chalk out a road map for “Power to all at affordable rates “.
AIPEF has forwarded a copy of a resolution to Modi that was adopted in its federal council meeting demanding immediate stoppage of blind privatization, introduction of franchisee system in power distribution and outsourcing of departmental works.
AIPEF will oppose crony capitalism, blind privatization policies & address the crisis being faced by Indian Power Sector that is threatening to undermine the economic survival of the Nation. The copies of resolutions have also been sent to Prime Minister and all Chief Ministers. Shaliender Dubey Chairman AIPEF personally delivered copy of resolution to Rajnath Singh BJP President.
The main resolution adopted by Federal Executive has demanded that proposed amendment in Electricity Act 2003 which is aimed at to further privatize distribution of power be withdrawn. The proposed amendments will lead to Creation of multiple agencies, adding cost at every level which ultimately affects consumer. It has demanded that disastrous reform policies be rolled back and pro people agenda should be incorporated in Electricity Act 2003.
V K Gupta Spokesperson of Federation said that the very purpose of changing Electricity Act in 2003 was to reduce the losses in Power sector, improve the financial health of the sector & reduce the subsidy burden of Govt. Due to faulty policies as pointed out above the contrary has happened.
The financial health of power sector has further deteriorated & Government is now even subsidizing private Discoms. What is more serious is that due to continued wrong energy policies banking sector may collapse under the burden of non-performing assets being generated by Power Sector.
Moreover autonomy & independence of Electricity Regulators has been completely eroded as it has been captured by vested interests due to interference by state Government’s even in tariff matters under the clause of public interest. Most of regulatory commissions are headed by retired bureaucrats who are enjoying all powers without any responsibility.
Padamjit Singh Chief Patron of Federation said that the concept of achieving low tariffs through competitive bidding in Ultra Mega Power Projects (UMPP) has been completely defeated by the changes made in terms of reference after award of contract by giving various concessions to successful bidders. The accounts of all private sector Discoms and generating stations must be subjected to any scrutiny like CAG Audit. These Discoms and generating companies are adding cost by purchases at very high cost from their own sister concerns which is ultimately burdened on consumer

Shailendra Dubey elected Chairman AIPEF

Shailendra Dubey elected Chairman AIPEF
Sunday March 23, 2014
Banglore
Shaliendra Dubey and Ratnakar Rao were elected Chairman and Secretary General of All India power Engineers federation(AIPEF) in its federal council meeting held on Saturday.
The federal council meeting AIPEF was held at Banglore and was attended by representatives from 18- states
Disclosing this V K Gupta a spokesperson of Federation said that Suneel Grover from Himachal and Venkat shivareddy from Karnatka were elected Senior Vice Chairman whereas R K Singh,Aparswamy Subhash Rathod and BL Yadav were elected Vice Chairman.
Nihar Ranjan Rai and Sunil Jagtap were elected Aadditional Secretary Generals,.Y Sombanshi was elected as Secretary publication and Satya Paul was elected Secretary Headquarter.
K N Mohan and Vinay pandey were elected Secretary Finance and Secretary Organisation respectively.Bhupinder Singh ,Ved vyas Rao and Hanumant Vore were made Secretaries.
Padamjit Singh . and K Ashok Rao were made Chief patron and Patron respectively. Padamjit Singh will head Regulatory affairs committee of AIPEF . V K Gupta made spokesperson and will deal mass communication in media.Legal cell will be headed by A K Jain.

Power Engineers demand review of power sector reforms

Power Engineers demand review of power sector reforms
Sunday March 23, 2014
Banglore
Describing the privatization of power sector as detrimental to the interests of consumers as well as the country’s economy, the All-India Power Engineers’ Federation (AIPEF) has decided to support only those political parties which give a pre-poll commitment to discourage privatization.
Shailendera Dubey newly elected Chairman of said the office-bearers would personally meet the heads of all important political parties and appeal to them to clarify their stand in their poll manifestos. He said the federation also wanted the parties to rollback privatization of power distribution by withdrawing the distribution licenses granted to private companies.
The federal executive meeting of AIPEF was held on Saturday at Banglore and was attended by representatives from 18 states. The meeting was chaired by Padamjit Singh Chairman AIPEF.
AIPEF demanded that a high level expert group should be constituted by the Government of India under the supervision and control of the Prime Minister so that the failure in the achievement of aims and objects of the Electricity Act 2003 could be analyzed and remedial measures evolved.
Power sector reforms which were initiated for giving power to all at affordable rates has failed miserably. The very purpose of changing the legislation in 2003 was to reduce the losses in the power sector, improve the financial health of the sector and reduce the subsidy burden of the Government. Shaliender Dubey Secretary General said that due to the faculty policies the contrary has happened.
Now Government has proposed further to amend the Electricity Act 2003 by suggesting major changes such as separating carriage and content in distribution by introducing supply as a separate function. The main aims of these amendments are to further develop power market rather than improving the performance of the sector. No enhancement of the efficiency of the existing distribution system in envisaged by the proposed amendments. Creation of multiple agencies will add cost at every level and consumer will be ultimate sufferer.
In case of power generation the concept of achieving low tariffs through competitive bidding in Ultra Mega Power Plants (UMPP) has been completely defeated by the changes made in the terms after award of contract by giving various concessions to the successful bidders. The tariff is going to increase further for the common consumers.
With the thrust on capacity addition in private sector, several States are now in a condition of surplus power during part or most of the year. This is resulting in a situation whereby State Thermal Power stations are ordered to be backed down or shut down so as to enable the private sector thermal stations to operate at optimum or full load.
While talking about power shortage in southern region Padamjit Singh said that state owned power plants in the West and the North are being shut down due to lack of load. This is in spite of the fact that the physical infrastructure exists to transfer power from one region to another.
The financial health of the power sector has deteriorated and Government is now subsidizing even private sector DISCOMS. What is more serious is that the Banking Sector may collapse under the burden of the non-performing assets being generated by the power sector.
Shaliender Dubey and P Ratnakar Rao were elected Chairman and Secretary General of AIPEF for the next term. Padamjit Singh was made Chief Patron of Federation and will head regulatory affairs committee of AIPEF. Sunil Grover and Venkat Shivareddy were elected Sr. Vice Chairman. VK Gupta was made spokesperson and will deal mass communication inmedia.

NCCOEEE demands CAG audit of private power sector companies

NCCOEEE demands CAG audit of private power sector companies
Sunday February 2 2014
New Delhi
National Co-ordination Committee of Electricity Employees & Engineers (NCCOEEE) has demanded that audit by CAG should be carried out for private sector distribution companies ,distribution franchisees and private sector generation companies.
The meeting welcomed the Delhi government’s decision to go for CAG audit of Delhi Discoms. Shaliender Dubey Secretary General All India Power Engineers Federation (AIPEF) said that Delhi Government should not succumb to blackmailing tactics of Delhi Discoms. The audit is warranted for all private sector companies in power sector since public/ consumers are directly impacted are suffering on account of high tariff.
The meeting was chaired by A B Bardhan Convener of Committee and attended by Padamjit Singh Chairman AIPEF, Shaliender Dubey Secretary General AIPEF, K O Habib, V Ashok Kumar and Chakardhar Parshad Singh and other leaders.
It was concluded in the meeting that Electricity Act 2003 has failed to achieve its objective of affordable and adequate power to all. While privatization of distribution sector has failed, de-licensing of generation has resulted in unscrupulous companies exploiting the consumers for securing undue profits; introduction of franchisee system in power distribution has resulted in widespread corruption which has adversely impacted the power consumers.
The introduction of franchisee system has introduced has resulted in scams and undue profit to franchisee companies at the cost of state Discoms and ultimately common consumer is suffering.
The proposed amendment to Electricity Act 2003 enabling private sector parties to enter as suppliers of electricity using the network and common wires of state distributing utility will further burden the consumers with higher tariffs. The financial health of state utilities will deteriorate further. The amendment to Electricity Act should be dropped and instead provision to integrate the unbundled utilities should be made.
It is strange that power capacity of 30,000 MW is stranded and fixed charges are being recovered from consumers without corresponding generation thereby increasing consumer tariff.
Power Engineers and employees of the country would be forced to stage protest dharnas on February 21 in case there were no response from Government on the letter written by convener of NCCOEEE to Prime Minister and other authorities.

Privatization of power sector has failed – AIPEF

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.

Scrap privatization of power distribution in UP- AIPEF

Scrap privatization of power distribution in UP- AIPEF
Sunday January 19 2014
Chandigarh
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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