The Hindu : New Delhi News : `Annul agreement with Reliance'

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Sunday, Apr 15, 2007
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New Delhi

`Annul agreement with Reliance'

Staff Reporter

Privatisation of electricity a complete failure, says A. B. Bardhan

NEW DELHI: Asking the Delhi Government to take action rather than just talk tough with the city's power distribution companies, the Communist Party of India has called for annulling the agreement with Reliance Energy for distribution of power in the Capital.

Taking a serious view of the power situation in the city, CPI general secretary and All-India Federation of Electricity Employees president A. B. Bardhan lashed out at the private discoms and termed the privatisation of electricity as a "complete failure".

He accused the State Government of "holding out a threat" but falling short of taking action.

"The Government must take the last step, call off their bluff, annul the privatisation agreement and restore the Delhi Vidyut Board, while also reforming its functioning," he said.

In a statement, Mr. Bardhan said: "The much proclaimed purpose of privatisation, that is to reduce the financial losses being made then by the DVB and to reduce tariffs due to improved efficiency and competition, has proved to be a complete failure."

"Consumers in Delhi are facing repeated and prolonged power cuts and blackouts every day in addition to back-breaking burden of high tariffs," he said.

Mr. Bardhan was also critical of the two Reliance discoms -- BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) -- for seeking subsidy from the Delhi Government, failing which they would further increase power tariff.

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