The Hindu : Opinions divided over DVB privatisation

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Sunday, Jun 02, 2002

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Opinions divided over DVB privatisation

By Our Staff Reporter

NEW DELHI JUNE 1. The Communist Party of India-Marxist (CPI-M) has alleged that privatisation of distribution activities of the Delhi Vidyut Board (DVB) would not only increase power tariff in the Capital but would also prove to be a huge drain on the public exchequer in the years to come.

``It is clear that this privatisation move is a cruel hoax on the people involving brazen plunder of public assets with active connivance of the Delhi Government,'' alleged P.S. Grewal, the CPI(M) Delhi Unit secretary, in a statement issued here.

Mr. Grewal also questioned the selection of the BSES for the privatisation deal. He claimed the company has been indicted severely by the Kanungo Committee, that inquired into the failure of the privatisation of the Orissa State Electricity Board. It had taken over three of the four distribution companies in Orissa.

``It neither brought in superior working skill nor capital, rampant theft continued and T&D (transmission and distribution) loss remained at 45 per cent -- the pre-restructuring figure; billing and collection efficient actually went down, there were sharp increases in tariffs without reduction in techno-commercial losses or improvement in consumer services,'' Mr. Grewal claimed. He alleged that the Government was resorting to subsidy through back door.

Meanwhile, in another statement, the Confederation of Indian Industries (CII) welcomed the privatisation move. Hoping that the power situation in the Capital would show signs of improvement, the CII Delhi chairman, Ravi Sinha, lauded the Delhi Government's step as one in right direction. The practice of inviting experienced players could actually serve as a model for restructuring of other utilities.

Similarly, the PHD Chamber of Commerce and Industry (PHDCCI) has also welcomed the privatisation process, but has called for caution and monitoring from the Delhi Government to ensure that the fruits of privatisation is passed on to the consumers.

In its release issued today, the PHDCCI said the terms of transfer of power distribution to private operators were by and large satisfactory and the target of 17 per cent deduction in losses over five years was realistic.

The Chamber said that as per the estimate, at least three to five per cent of these losses would be technical in nature and rectifying these snags would make available additional power which could be allotted to industrial and commercial consumers as they were biggest contributors of revenue.

The PHDCCI said the two private companies would have to make special efforts to bring about improvement in customer services, metering, billing and collection of revenue. All efforts should be directed towards improving the service profile of the distribution companies, the release added.

The Chamber also asked the State Government to immediately legislate strict anti-theft laws which had been promised during the stage of negotiations with the companies. In the absence of such legislation and support of the Government, it would be difficult to bring about desired transformation in the power distribution network, it added.

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