The Aam Aadmi Party (AAP) on Monday accused the Maharashtra government of conspiring to hand over state-run electricity distribution company Mahavitaran to the private conglomerate Adani group.
The Arvind Kejriwal-led outfit fully supports the proposed strike on January 4 called by a section of state electricity workers in Mumbai, Thane, Nashik, Raigad and other districts of the state against “privatisation” of government-run utilities, Mumbai unit president and AAP national executive member Preeti Sharma Menon said in a statement.
In November last year, an Adani group company had sought licence for expanding its power distribution business into more areas of Mumbai. In an advertisement published in several newspapers then, Adani Electricity Navi Mumbai (AENM) had said it has approached the Maharashtra Electricity Regulatory Commission (MERC) for a distribution licence in some pockets of the Mumbai Metropolitan Region (MMR) along with its listed parent Adani Transmission.
After airports, ports, BSES (a power firm taken over by the group) and Dharavi redevelopment projects, state-owned energy distribution company Mahavitaran, which distributes electricity to villages in Maharashtra, is also being handed over to the Adani group by the Bharatiya Janata Party (BJP) government, Menon said in the statement.
The BJP is a key constituent of the Eknath Shinde-led government in Maharashtra.
She was reacting to Adani Electricity Navi Mumbai Ltd, a subsidiary of Adani Transmission, applying to the MERC for a parallel licence for power distribution under the jurisdiction of Mahavitaran in Bhandup, Mulund, Thane, Navi Mumbai, Panvel, Taloja and Uran areas.
Maharashtra State Electricity Distribution Company Ltd (MSEDCL or Mahavitaran) is a wholly-owned corporate entity under the Maharashtra government.
She said, “This means that privatization is going to happen soon. Electricity consumers of Mahavitaran, thousands of workers of Mahavitaran, trade unions and people’s representatives have expressed strong displeasure and opposed the central government’s privatization policy.’ The AAP leader said to protest this “privatisation” move, electricity workers of Mumbai, Thane, Nashik, Raigad and other districts of Maharashtra will go on a strike on January 4 and hold demonstrations at the district collector’s office.
The AAP is against crony capitalism and the privatization policy of the government, and firmly stands behind electricity employees, she said.
“Mahavitaran distributes electricity in villages of Maharashtra at subsidised rates. The people of these villages make up the bulk of the labour force and are very poor. Today, in cities like Mumbai, after the privatization of BSES and its takeover by the Adani group, we are witnessing an increase in electricity tariffs. Common Mumbaikars are being looted,” the AAP leader alleged.
However, sources rejected the AAP’s claim and asserted there was no move to privatize Mahavitaran.
“This is not privatization as alleged by the AAP. The private company (AENM) has applied for a parallel licence, wherein the company shall be laying its own network to serve consumers. It will provide choice of supplier to the consumer similar to the telecom Industry as also mentioned by Devendra Fadnavis (Maharashtra deputy chief minister who also holds the energy portfolio),” they said.
The sources said allegation that Mumbai power consumers were paying higher tariffs was also baseless.
“If the tariffs are higher, consumers will not choose such a distribution licensee and shall prefer sticking to a utility providing competitive tariffs,” they said.
There will be no financial loss or job cuts at MSEDCL, the sources said, adding the AAP’s allegations are politically motivated.
“MSEDCL shall continue its operations in the area and largely the utilities shall compete for upcoming load/demand in the area. No question of financial loss to MSEDCL or job loss,” they said.
“These are politically motivated allegations. Power supply infrastructure in the area (where private firm has applied for parallel licence) has not been developed commensurate to its growth, prompting many consumers and consumer groups to demand entry of a private player. Trade unions and political parties have their vested interest to oppose entry of a private player and to stall competition which would be beneficial to consumers,” the sources said. PTI MR RSY RSY
