UPPCL PPP model: Demand to scrap PPP model, form high-level technical team to empower power companies

UPPCL PPP model: The Uttar Pradesh government’s decision to privatize power distribution companies under the Public-Private Partnership (PPP) model has been opposed by engineers, employees, and consumer advocacy groups. The move, covering 42 districts in the state, has been termed unconstitutional and riddled with procedural and financial flaws, potentially favoring private corporations over public welfare.

Key organizations, the Uttar Pradesh Power Corporation Limited (UPPCL) Engineers’ Association, complained that there had been no effective consultation and a lack of proper answers to fundamental questions posed by stakeholders. Dissent continues to grow as protests demand the establishment of a high-level technical team to work out a comprehensive action plan for power companies to achieve self-reliance.

The privatization of Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL) and Purvanchal Vidyut Vitran Nigam Limited (PuVVNL) has faced stiff resistance. Consumer councils argue that the proposal, hastily approved during the Energy Task Force meeting, violates the Electricity Act of 2003 and is marred by legal and financial irregularities.

Consumer Council President and a member of the State Advisory Committee, Akhilesh Kumar Verma strongly condemned the policy, saying that “The PPP model is a flawed proposal designed to benefit private corporations at the cost of consumers. If implemented, it could plunge consumers back into the era of frequent blackouts and unreliable power supply.”

Opponents say that the proposal does not respect some of the provisions of the Electricity Act of 2003, which demands adherence to very strict regulatory and procedural standards. Critics also say that the privatization plan seems to give profits for private players at the cost of the interests of farmers, engineers, and ordinary consumers.

Verma also said that despite the proposal having been passed in the Task Force meeting, there was not sufficient study and due diligence. He urged the government and UPPCL management to realize the hastiness with which the decision had been made and revisit the plan to address the shortcomings of it.

The power companies’ self-sufficiency will require the formation of a high-level technical team that should be responsible for coming up with a strong action plan. The council argues that this is an essential approach toward the protection of consumer interests and sustainable development of the state’s power sector.

Engineers and employees, who have come together under the banner of resistance, have declared their intention to take their protests to the next level. Engineers and employees will wear black armbands at work on January 1 as a symbolic protest. State-wide power panchayats are also being organized to garner support from farmers and consumers, highlighting the disastrous implications privatization would have on the marginalized sections, particularly in Purvanchal and Bundelkhand.

“Do or Die” Resolve Against Privatization

The Uttar Pradesh State Electricity Board Engineers’ Association announced it would fight the privatization of power at all costs, going by the slogan of “do or die.” The members asserted that privatization may make electricity out of reach for the economically disadvantaged.

While acknowledging the need for reforms in the power sector, critics emphasize that such measures should be pursued within the framework of law and with a focus on equitable access. The ongoing debate underscores the urgent need for transparent decision-making, with a focus on building a sustainable and consumer-friendly power infrastructure in Uttar Pradesh.

With the approaching new year, the future of privatization in the state still hangs in limbo as key stakeholders hold tight to the high ground for safeguarding public interest and against commodification of this critical public utility.