Preparation To Hand Over Transmission Network To Private Hands

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Along with power distribution, the central government is now preparing to hand over the transmission network to private hands. After the proposed Electricity (Amendment) Bill-2021 for privatization of electricity was not passed by the Parliament, the central government has found this new way to implement its intention.

Mrutyunjay Kumar Narayan, Joint Secretary (Transmission) of the Union Ministry of Power, has sent a letter to the Chief Secretaries of all the states including UP and the Principal Secretaries of the Energy Department to include the 33 KV network used for power distribution in the State Transmission Utility (STU). Said. Actually, at present, only the network of 132 kV and above comes in transmission while the network of 33 kV and below is under Power Corporation, through which electricity is distributed.

The Center has also asked STUs to form a joint venture with Power Grid Corporation of India (PGCIL). After this, in a way, the entire distribution and transmission network of electricity will be controlled by the Government of India and the obstacles in the way of privatization will be removed.

License will no longer be needed for distribution
Experts say that once the 33 KV network is included in the transmission utility, there will be no distribution network. In such a situation, the government can be successful in carrying out the privatization campaign which is not being completed due to the stalling of the Electricity (Amendment) Bill-2021. There is a clear provision in the proposed Electricity (Amendment) Bill that companies will not need a license for distribution of electricity. Any number of companies can distribute in an area. They just have to register themselves with the regulatory commission. The draft bill states that any companies that come into the distribution sector will be able to use the already existing network. For this they have to pay only user charge.

will become a source of profit for the private sector
According to the experts of the power sector, the electricity network that has been prepared after spending lakhs of crores since independence, is now going to become a means of earning profits for the private sector. Since PGCIL is involved in the national monetization pipeline, sooner or later the entire network may go into private hands.

All India Power Engineers Federation protested
Shailendra Dubey, chairman of the All India Power Engineers Federation, says that this will indirectly control the power system of the states by the Center and it will run this sector as it wants. He said that neither the National Electricity Policy nor the draft Electricity (Amendment) Bill 2021 has a provision to include 33 KV network in the transmission utility. Not only this, there is no such provision in the presently effective Electricity Act 2003. Dubey said that this move of the Government of India will be opposed at every level.

Electricity engineers have strongly opposed the order of the Central Government to include 33 KV network connected with power distribution in State Transmission Utility (STU) and make it a joint venture with Power Grid Corporation of India.

Shailendra Dubey, chairman of All India Power Engineers Federation, says that this will indirectly control the power system of the states and the center will run this sector as it wants. He said that neither the National Electricity Policy nor the draft Electricity (Amendment) Bill 2021 has a provision to include 33 KV network in the transmission utility. Not only this, there is no such provision in the presently effective Electricity Act 2003. Dubey said that this move of the Government of India will be opposed at every level.

Expansion

Along with power distribution, the central government is now preparing to hand over the transmission network to private hands. After the proposed Electricity (Amendment) Bill-2021 for privatization of electricity was not passed by the Parliament, the central government has found this new way to implement its intention.

Mrutyunjay Kumar Narayan, Joint Secretary (Transmission) of the Union Ministry of Power, has sent a letter to the Chief Secretaries of all the states including UP and the Principal Secretaries of the Energy Department to include the 33 KV network used for power distribution in the State Transmission Utility (STU). Said. Actually, at present, only the network of 132 kV and above comes in transmission while the network of 33 kV and below is under Power Corporation, through which electricity is distributed.

The Center has also asked STUs to form a joint venture with Power Grid Corporation of India (PGCIL). After this, in a way, the entire distribution and transmission network of electricity will be controlled by the Government of India and the obstacles in the way of privatization will be removed.

License will no longer be needed for distribution

Experts say that once the 33 KV network is included in the transmission utility, there will be no distribution network. In such a situation, the government can be successful in carrying out the privatization campaign which is not being completed due to the stalling of the Electricity (Amendment) Bill-2021. There is a clear provision in the proposed Electricity (Amendment) Bill that companies will not need a license for distribution of electricity. Any number of companies can distribute in an area. They only have to register themselves with the regulatory commission. The draft bill states that any companies that come into the distribution sector will be able to use the already existing network. For this they have to pay only user charge.

will become a source of profit for the private sector

According to experts in the power sector, the electricity network that has been prepared after spending lakhs of crores since independence, is now going to become a means of earning profits for the private sector. Since PGCIL is involved in the national monetization pipeline, sooner or later the entire network may go into private hands.

All India Power Engineers Federation protested

Shailendra Dubey, chairman of All India Power Engineers Federation, says that this will indirectly control the power system of the states and the center will run this sector as it wants. He said that neither the National Electricity Policy nor the draft Electricity (Amendment) Bill 2021 has a provision to include 33 KV network in transmission utility. Not only this, there is no such provision in the presently effective Electricity Act 2003. Dubey said that this move of the Government of India will be opposed at every level.

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Electricity engineers opposed the order of the Center

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