Maha Govt Says No Move, To Privatize State-Run Power Firms; Employee UnionsCall Off Strike – EQ Mag
Employees of three state-owned power companies in Maharashtra called off their strike on Wednesday evening, hours after they stopped work as part of a three-day agitation launched in support of their demands, following an assurance from the government that the utilities will not be privatized, fulfilling a key demand.
Maharashtra Deputy Chief Minister Devendra Fadnavis, who also holds the energy portfolio, held a meeting with trade union representatives and later said the government had no intention to privatize state-run power utilities.
The decision to call off the stir was announced by Sanjay Thakur, president of the Subordinate Engineers Association, one of the unions participating in the 72-hour-long strike that started on Tuesday midnight over a host of demands, following the meeting with Fadnavis.
Maharashtra State Electricity Distribution Company Ltd (Mahavitaran or MSEDCL), Maharashtra State Electricity Transmission Company Ltd (Mahapareshan) and Maharashtra State Electricity Generation Company Ltd (Mahanirmiti) are the state-owned power firms whose employees, numbering more than 80,000, had gone on the strike.
Fadnavis said a “communication gap” between the state government and agitating trade unions led to the stir.
“If a meeting had taken place between the state government and trade union representatives earlier, the strike wouldn’t have happened,” he said.
The deputy CM said the state government doesn’t want any state-run company to be privatised.
“One private company (belonging to Adani group) has applied for ‘parallel distribution licence’. I want to make it clear that we are not supporting privatisation of these (power) companies,” he said.
“We will not privatize Mahavitran (state-run power distribution firm) on the lines of Odisha and Delhi. In case grant of parallel licence (to Adani group company) impacts MSEDCL’s finances, the government shall support MSEDCL in submission before (state power regulator) MERC to ensure their interests are protected,” said the Deputy Chief Minister.
In November last year, Adani Electricity Navi Mumbai Ltd, a subsidiary of Adani Transmission, had applied to the Maharashtra Electricity Regulatory Commission (MERC) for a parallel licence for power distribution under the jurisdiction of Mahavitaran in Bhandup, Mulund, Thane, Navi Mumbai, Panvel, Taloja and Uran areas (located in Mumbai and its surrounding areas). No decision has been taken yet on the application.
Issuing a statement after a more than two-hour-long meeting with Fadnavis at Sahyadri guest house in south Mumbai, the action committee of trade unions in state-run power companies, who had given the agitation call, said they have ended their strike.
A joint statement shared with the media after the meeting by the trade unions highlighted 12 points raised by them with the state government. Krushna Bhoir, general secretary, Maharashtra State Electricity Workers’ Federation, told PTI the government has agreed to all these points.
As per the statement, one of the points says there will be no privatization of the three state- owned electricity companies.
It further said the government and Mahavitaran (MSEDCL) will oppose any move to issue parallel distribution licence to “private capitalists” within the state-run company’s jurisdiction. If the MERC tries to grant parallel licence to private companies, they (state government and Mahavitaran) will legally oppose the move. According to the statement, the Maharashtra government will provide Rs 55,000 crore to financially strengthen the three state-owned companies in their power generation, transmission and distribution business. The government also agreed that no hydropower projects will be handed over to private players for operation and a proposal in this regard will soon be presented before the cabinet for approval, it said. “No action will be taken against employees, engineers, officers and contractual contract workers who took part in the strike,” said the statement. It also said a policy will be framed to accommodate contractual workers by giving them extra marks when vacant posts are filled up in the three companies. The statement said representatives of 31 trade unions, which were part of the action committee that called the strike, and managing directors of the three state-run power companies took part in the meeting.
“Trade unions had a positive discussion with Deputy Chief Minister Devendra Fadnavis and hence the strike was called off after written minutes were given,” said the statement. The action committee’s other demands were – six hydropower plants owned by Maharashtra State Electricity Generation Company should not be sold to private firms, more than 40,000 contractual and outsourced workers in the power companies should be absorbed permanently, more than 42,000 vacant posts should be filled, the widespread practice of appointing contractors should be stopped, and the companies should be run transparently, among others. Soon after the strike started, the government invoked the Maharashtra Essential Services Maintenance Act (MESMA) to ensure there was no disruption in power services. Earlier in the day, protesting employees did not report to work and gathered in makeshift pandals as part of the agitation. Meanwhile, sources said the state government has no role in issuing parallel distribution licences and a decision in this regard has to be taken by the MERC after following due legal process.
“Section 14 of the Electricity Act says…’No such applicant who complies with all the requirements for grant of licence shall be refused grant of licence on the ground that there already exists a licensee in the same area for the same purpose’,” said the sources.
Source: PTI
