Power reforms harmful, says CPI(M) leader

By Our Special Correspondent

HYDERABAD, JUNE 28. Mr. E. Balanandam, CPI(M) Politburo member, has made an impassioned appeal to the Chief Minister, Mr. N. Chandrababu Naidu, to roll back the power reforms as they would bring more harm than benefit to the State's economic interests.

Addressing a press conference here on Wednesday, Mr. Balanandam, who is here to attend a meeting of the parliamentary committee on power, said the reforms would undermine the nation's capability to face global competition by raising the cost of power, a vital component of infrastructure along with labour. The post-hike power rates for industries in Andhra Pradesh were higher than the international average of 11 US cents a unit.

The Marxist leader, who is the CITU president and also heads the National Coordination Committee of Electricity Employees, Engineers and Officers, alleged that the World Bank's design was to weaken India's infrastructure and help developed countries. Mr. Naidu should rise above political considerations and realise the dangerous implications of his World Bank-driven power policy.

He also deplored the Centre's power policy, and said the coordination committee would organise a demonstration outside Parliament during its next session and an all-India strike against moves to privatise the power sector, which was the lifeline of the nation. He described as most retrograde the Centre's decision on May 12 to allow 100 per cent foreign equity in power and oil sectors as it would open the floodgates for the World Bank and multi-nationals to play around with India's economy.

The CPI (M) MP said none of the States which implemented the World Bank-driven power reforms was happy. In Orissa, power tariffs had doubled and were poised for another hike while all the ills which dogged the erstwhile Electricity Board remained.

The Haryana Chief Minister was seriously considering rolling back the power reforms following resistance from people while Maharashtra was rethinking about permission to the Enron Stage II project because the wholesale rate of power had jumped up from Rs. 2.11 to Rs. 5.54 a unit after completion of Stage I.

He said Rajasthan had slowed down the reform process after a major strike in the power sector, but the Centre as well as the World Bank were threatening to cut off funds to the State if it did not hasten the reforms.

Mr. Balanandam, who headed an expert committee to suggest power reforms in Kerala, said power tariffs there were the lowest.

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Section  : Southern States
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