The Hindu : New Delhi News : DVB's reconstruction sought

Online edition of India's National Newspaper
Saturday, Aug 07, 2004

New Delhi

New Delhi

DVB's reconstruction sought

By Our Staff Reporter

NEW DELHI, AUG. 6. Major trade unions representing engineers and workers in the power sector have decided to launch a national agitation to demand reconstitution of the erstwhile Delhi Vidyut Board (DVB).

As part of power sector reforms, the DVB was unbundled into six companies -- three power distribution companies, and one for transmission, Transco, another for generation, Genco and a holding company. The discoms were handed over to private companies -- BSES (now Reliance Energy) and Tata Power -- in June 2002.

Addressing a crowded late evening meeting of power sector engineers and workers of the Capital in Pyare Lal Bhavan at ITO, leaders of all major trade unions alleged that privatisation has only resulted in massive subsidies to the Tatas and Ambanis from public coffers, higher electricity tariff for the consumers and job loss for the workers.

"Unbundling of the power sector is not the way to carry out reforms and is against the national interest," said A.B. Vardhan, the veteran trade union leader and Communist Party of India general secretary.

Stating that the Electricity Act 2003 called for replacement of all the State Electricity Boards by private players, Mr. Vardhan observed this would result in apartheid in the power sector wherein only the rich would get electricity, while the majority of the poor would have to live without it.

Referring to the latest report of the Comptroller and Auditor General (CAG) of India, another veteran trade union leader, Balanandan claimed that it proved that the people had been swindled by privatisation and "public wealth had been transferred to private coffers for a song".

He called upon the trade unions leaders to join hands and oppose privatisation.

The meeting organised by the Delhi Power Engineers and Employees Convention in a unanimous resolution urged the Delhi High Court to take CAG report "on record" and expedite various cases filed by employees challenging the privatisation process of the DVB and orders of the Delhi Electricity Regulatory Commission.

The resolution demanded that the Delhi Government should withdraw all concessions and guarantees awarded to the private companies till the time DVB was reconstituted. "Providing a guarantee of 16 per cent profit on paid up capital and reserves for five years at a time when bank interest rates are between four and six per cent had given the private players a no risk business," said the Convention convenor, K. Ashok Rao.

They also demanded setting up of a high level inquiry to pinpoint the responsibility for transfer of thousands of crores of public assets.

The Convention expressed concern that while the tariffs have been increased twice in the past two years, there has neither been improvement in service nor reduction in the loss being incurred by the Delhi Government.

Observing that the employees were recently forced to take voluntary retirement and have not been given any benefits, the Convention urged all these employees to report back on duty on September 1 if their terminal benefits were not paid to them in full till then.

The resolution also expressed concern over recruitment of untrained workers through contractors to work on live power lines.

"This endangers human beings as well as the equipments. But the liability on account of injury and death is so marginal that the private companies do not care," it said.

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