The experiment of unbundling of state electricity boards and privatization of power sector has completely failed and losses of utilities have increased manifold. The losses of power utilities have crossed 2 lakh crore. Now to bail out Discoms, bonds with state guarantee are being proposed.
Now, Shunglu Committee have made the sweeping proposal for franchising distribution in 255 cities on the basis of population and input energy without considering the prevailing level of AT&C losses. The Committee has restricted its franchising proposal to the creamy areas only and admitted that the Discoms would be left with rural areas only.
All the proposals mooted by the Government in name of reforms in power sector are meant to give benefits to only industrial houses. It may be bailout package to Reliance Discoms by Delhi government or sale of cheap power to franchisee for further distribution in cities. The net result will be power consumers in cities will be left at the mercy of private players and state Discoms will supply power in rural areas with state government subsidies.
The Federation will hold seminars and meetings at all state capitals to highlight the failures of so-called power sector reforms and loot by big industrial houses such as Reliance, Jindal, Adani, Torrent and Tata.
The other office bearers of Federation including A K Jain, Venkat Shivareddy, Viney Pandey, P K Khare, and G B dabre, Anil Vyas, O P Pandey Yash Pal Sharma, V S Bidri, Anil Kumar Singh and Satya Paul were also present in press conference.
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