AIPEF opposes distribution franchisee for Gurgaon and Panipat

V K Gupta
12 December, 2011

All India Power Engineers Federation (AIPEF) has opposed the proposal of urban distribution franchisee of Gurgaon and Panipat and has sought Chief Minister's intervention.
SHAILENDER DUBEY, Secretary General, AIPEF, has written to Chief Minister B S Hooda that outsourcing power distribution to private houses in Gurgaon and Panipat will severely affect the income area of DISCOMS, leaving the power utilities at mercy.

Share V K Gupta, a spokesperson of federation, today said that Gurgaon and Panipat are high revenue earning areas for both Discoms. Gurgaon contributes monthly revenue of Rs.214 crore against DHBVN’s total monthly revenue of Rs. 450 crore. Similarly Panipat contributes revenue of Rs.35 crore per month out of total monthly revenue of UHBVN of Rs.315 crore.

With this revenue data it is very clear that handing over these high revenue earning areas to private franchisee will have serious implications on financially crunched DISCOMs of Haryana. There is no reason to privatize Gurgaon and Panipat areas as these are the cities where revenue collection is 100 per cent and line losses are lowest in state.

This amounted to back door privatisation which would give huge profits to the private parties at the cost of public sector distribution companies, which were already under acute financial distress. The sell out of high revenue earning areas would force the public sector distribution companies into bankruptcy and directly affect not only the finances but also power supply to the rural areas and agriculture.

The letter states that it is already known that in Bhiwandi, although losses have come down but the profit has not come in the pocket of Maharashtra Discom (MSEDCL) rather it is going to private franchisee. Similarly, many other financial irregularities are committed by the franchisee in Agra, Nagpur and Aurangabad. This all proves that urban distribution franchisee is not in the interest of the state.

It may be added that the power engineers and employees of Haryana Power utilities are highly agitated against the proposed move of Haryana government.