UPPCL expedited the process amid protests

Controversy regarding privatization of power distribution corporations is increasing in Uttar Pradesh. Uttar Pradesh Power Corporation Limited (UPPCL) has started the process of privatization of Dakshinanchal and Purvanchal Vidyut Vitran Nigam Limited (DVVNL and PUVVNL). The boards of directors of both the corporations have given the UPPCL management the authority to form new companies and take decisions related to privatization.

Opposition to privatization: Statewide movement

This step of privatization has been strongly opposed by the Electricity Employees Joint Struggle Committee, Uttar Pradesh. On January 13, the committee organized protest meetings in the entire state including the capital Lucknow.

• Employees protest:
  • Electrical workers, contract workers, and engineers are working wearing black bands.
  • Protests were organized in the capital Lucknow and all the districts.
• Statement of Sangharsh Committee:
  • “The agitation will continue until the privatization decision is withdrawn.”
  • According to the committee, privatization would be detrimental to both consumers and employees.

Public awareness against privatization

On Sunday, on a holiday, the Sangharsh Committee, through the Resident Welfare Association in Gomti Nagar Extension, Lucknow, gave information to the common consumers about the possible disadvantages of privatization.

• Main allegations:
  • Fear of increase in electricity rates due to privatization.
  • Consumers will have to face private houses focused on profits rather than better services.

Allegations of collusion against management

The Sangharsh Committee made serious allegations against the UPPCL management of collusion with private houses.

• Committee claims:
  • The management is planning to sell assets worth lakhs of crores of rupees to pre-determined private houses at throwaway prices.
  • The proposal to give the lands of distribution corporations on lease for only Re 1 per year is fatal.
  • Privatization will cause huge loss to government assets.

Next strategy of the movement

The Sangharsh Committee plans to announce its next steps.

• Upcoming Events:
  • Organizing a statewide strike to further intensify the protest.
  • Widespread mass movement against privatization along with common consumers.

Privatization: Government’s side

According to UPPCL, privatization will improve the distribution system and provide better services to consumers.

• Main Objective:
  • Increasing efficiency in power supply.
  • To reduce losses in distribution.

What is at stake in opposing privatization?

• Future of Employees:
  • Threat to jobs of government employees and contract workers.
• Consumer Concerns:
  • Fear of increase in electricity rates and deterioration in the quality of services.
• Loss of State Property:
  • Allegations of handing over properties to private houses at low prices.