Unions plan stir against privatisation of MSEB

Unions plan stir against privatisation of MSEB
EXPRESS NEWS SERVICE

JULY 9: In an emergency meeting called by all 12 trade unions of the Maharashtra State Electricity Board (MSEB) on Saturday at Nagpur, it was unanimously decided that all the unions will launch an indefinite stir if the government gives any indication of privatising the board. A major fallout of this meeting has been that several technical side unions, including Graduates Engineers Association, who had supported privatisation efforts earlier have now joined hands with the agitating unions to protest privatisation plans, sources said.

The meeting was called following the recent statement of Chief Minister Vilasrao Deshmukh that he has agreed, in principle, to privatise MSEB and split it into three entities, viz., generation, transmission and distribution.

Interestingly, the CM's statement comes in the wake of an ambitious privatisation project initiated in Bhiwandi which was struck down by his government citing possible job cuts. The Board had forwarded a detailed privatisation plan for the Bhiwandi distribution network with 51 per cent equity to be offloaded to a private partner. The board's request for appointing a strategic consultant for this purpose was also denied by the government.

During the previous year the board had initiated privatisation efforts in Navi Mumbai which were scuttled due to differences between trade unions. In this case, the board had appointed IL&FS as project consultants (for which MSEB paid Rs 10 lakh) and final approval was pending with the government for floating tenders for the strategic partner. In fact, the idea of privatising the Bhiwandi network was first suggested by trade unions itself during the public hearings for the Navi Mumbai plan.

Also, the agitation called by Sharad Rao was vehemently criticized by unions as Rao's union hardly has any representation in the board. Sources said the Subordinate Engineers Association has the largest support in MSEB, followed by Tantrik Kamkar Sangh and MSEB Workers Federation. The Graduates Engineers Association represents over 70 per cent of the power stations workforce. In case of any strike called by unions, it is learnt, the Engineers Association will do only normal duties like office works and not attend sub-station works.

Mohan Sharma of MSEB Workers Federation said: ``We had written to the CM that no privatisation plans should be taken up. His statement now has surprised us. There is no need to privatise the board, it is one of the better managed ones in India.''

``Moreover, we have signed a tripartite agreement between the board, state energy minister and 24 officers of 12 trade unions last week for involving us in any privatisation efforts. This is to ensure nobody loses jobs.'' The CM has admitted it will be a major problem to protect employees' jobs once privatisation plans are initiated.

The state has already appointed a one-member committee under former bureaucrat Velluri Narayan for advising the government on restructuring the board. Apart from this, the Power Finance Corporation (PFC) also is engaged in offering consultancy services for revamping the board. Following PFC's insistence, the government had given its mandate to Administrative Staff Engineering College of India for preparing a report on privatisation.

A power ministry official said: ``If the government is serious, it should appoint a strategic consultant soon and ask him/her to prepare the agenda for the privatisation programme. The consultant will present different options before the government with proper consultations with all stake-holders of the board, viz., consumers, trade unions and other stake-holders. This is the way other states have begun their reforms process.''