The BJP Playbook to Hand Over Power Sector to Private Players
Jaswinder Singh
The BJP’s anti-farmer face always gets exposed despite its numerous farmer-friendly announcements, advertisements, and claims. This time, the BJP’s mask has been removed by power companies. An order was issued stating that if electricity is supplied to farmers for even one minute longer than 10 hours, the salary of the supplier employee will be deducted. The order was clear that if the supply exceeds 10 hours a day, the operator’s salary will be deducted. If electricity is supplied for more than 10 hours for more than two days, the junior engineer’s salary will be deducted. The deputy general manager will be held responsible for the loss of electricity for more than 10 hours for five days. Furthermore, if farmers receive more than 10 hours of electricity for more than that period, the general manager will be held responsible and his salary will be deducted. There was an uproar, and the order was withdrawn. But this was a failed attempt to cover up the crime. The chief minister simply stated that the BJP government is committed to providing 10 hours of electricity to farmers daily.
The BJP’s central and state governments seize no opportunity to increase power companies’ profits, hand over power department infrastructure worth lakhs of crores of rupees to power companies, especially Adani, exacerbate the exploitation of ordinary consumers and farmers, and plunge the homes of the poor into darkness. Just about a month ago, a bizarre order was issued to privatise power companies. For this purpose, power companies were given three options. However, the objective of all three options is the same: hand over power to private companies, no matter what.
The first option requires power companies to sell 50 per cent or more of their shares to private companies. Once 50 per cent of the shares are transferred to private hands, power management will be privatised, which is the BJP’s intention. The second option is shamelessly blatant. If power companies do not want to sell 50 per cent of their shares, they will have to sell 26 per cent of their shares to private companies. But even after this, the power companies will have to hand over their management to private companies. The third option is very cunning. According to this, if the power companies do not want to sell their shares, then they will have to get themselves registered with the Securities and Exchange Board of India (SEBI). According to SEBI rules, only those companies can get themselves registered with SEBI which are running in profit. Cunning because both the central and state governments know that except Gujarat, the power companies of every state are in loss. If they cannot get themselves registered with SEBI even if they want to, then what is the meaning of these options?
The central government claims that these options are being offered to reduce the losses of power companies. However, before this, the implementation of the law enacted by the Atal Bihari Vajpayee government in 2003 should be reviewed. The Digvijay Singh government in Madhya Pradesh dismantled the Electricity Board into six companies in accordance with the Tata Rao Committee’s recommendations. The same arguments were made: this was to eliminate the Board’s losses, prevent power theft, reduce transmission losses, and improve power supply. Before taking further steps towards privatisation, shouldn’t a review have been conducted of the situation two decades after the Tata Rao Committee’s recommendations and the dismantling of the Electricity Board? Have losses reduced? The truth is that the losses of all six power companies in Madhya Pradesh have exceeded Rs 7.5 lakh crore. Even with regard to power theft and transmission losses, they continue to persist. Transmission losses are 2.66 per cent, and power theft among power supply companies ranges from 15 per cent to 28 per cent. Even regarding management improvements, this system has led to decentralised corruption and delays in management. During the Electricity Board era, there used to be a Central Purchasing Committee. Now, proposals are first prepared at the company level, followed by a joint committee of all companies discussing and deciding. Only then are necessary equipment purchased. This means that both delays and corruption have increased. It was also claimed that the entry of private companies would increase competition. This would benefit consumers. But the experience is that exploitation of consumers has increased. Furthermore, this new system has further exacerbated the exploitation of consumers. Estimated consumption, fake bills, and forced recovery are rampant. Employees are also becoming victims of exploitation. Permanent jobs are all but gone, and the entire workforce is outsourced, where there’s neither job security nor life security. The only security is the profits of power companies, which are constantly increasing.
Two examples of collusion between power companies and the BJP government have recently emerged. On the one hand, cases of farmers’ tractors, buffaloes, and vehicles being seized for non-payment of electricity bills have come to light. Even in urban areas, incidents of consumers’ cars and motorcycles being auctioned have occurred. On the other hand, BJP leaders and their offices have been named and published in newspapers, claiming they have outstanding bills of lakhs of rupees, yet their homes and offices remain sparkling clean.
The BJP government’s commitment to power companies is unquestionable. Even when farmers’ loan installments are postponed due to natural disasters, their electricity bills are not waived, even if the bills are fraudulent. Farmers are unable to sell their crops to cooperatives and government committees even if they wish to. Because the first step to selling their produce in the market is to pay the electricity bill. Therefore, farmers are forced to sell their produce to middlemen at throwaway prices. The situation is similar with smart meters. Initially, the government tried to install smart meters by any means. However, after the Jabalpur High Court lifted the requirement for smart meter installation, not only the electricity companies but also the government are now selling consumers false benefits.
The proposed electricity law is even more dangerous for farmers and consumers. In a way, this law is a conspiracy to dispossess farmers of their land. Currently, the provision is that if an electricity line is laid through a farmer’s field, they can refuse or demand compensation if the poles damage their land. However, under the proposed law, if a farmer opposes the installation of a pole, the company will file a complaint against them with the collector. The collector will file a criminal case against the farmer, which also carries a jail term. This means the farmer will lose his land and go to jail.
This law also provides that anyone can buy and sell electricity from anywhere, using the entire power infrastructure, from a specific feeder or substation. This is part of a long-term, but announced plan to gradually hand over the entire power system and infrastructure to private companies.
Indeed, this has already been initiated in the state. The entire power infrastructure of 18 districts of the state, including power lines and substations, has been given to Adani for a period of 20 years for a mere Rs 1,200 crore, while the cost of building this infrastructure would have been Rs 1 lakh crore.
Well, this is just the beginning. If there is no resistance, the government intends to destroy the very spirit of the 1952 Electricity Act, which states that electricity is a fundamental right of every citizen. Under the pressure of this very law, there was talk of providing electricity to every household. Now, electricity will belong to Adani, and only those who can afford it will use it. Electricity will go from being a basic right to becoming a privilege of the wealthy. The beginning has already been made.
