Management proposing franchisee system to hide its failures: Haryana Power Engineers

The managements of two Discom’s is only dependent on advisor and consultant and do not take in to confidence engineers & workers of the power utilities.

http://www.mynews.in
March 8, 2010

Management proposing franchisee system to hide its failures: Haryana Power Engineers
Vinod Kumar Gupta

haryanapower.jpg

Management proposing franchisee system to hide its failures: Haryana Power Engineers

Rohtak: Haryana Power Engineers Association has alleged that the Haryana Power Distribution Companies has proposed introduction of franchisee system in power distribution to hide their failures.

The Association held its meeting held at Rohtak and discussed the financial position of power utilities and the resultant privatization of power distribution in the state.

It has been claimed by the association that the debt of two power utilities has increased to Rs. 4099 crores and the deficit for each month is rising by Rs. 500 crores. The capital loans are more than 10836 crores. The defaulting amount has increased to 3413 crores, average commercial line losses are 35 percent in UHBVN and 32 percent in DHBVN.

The Association is of firm views that that the management of both Discom’s are not putting correct information to Government on subjects like segregation of rural feeders, filing of annual revenue requirement in HERC, collection of current bills & arrear bills.

The managements of two Discom’s is only dependent on advisor and consultant and do not take in to confidence engineers & workers of the power utilities.

It may be mentioned that government had directed both the distribution companies to restructure themselves by March 31.2006, so that creation of post be ensured. But even after four years the management of Discom’s has not shown any interest to restructure the companies. This has resulted in to reduction of working staff to 48percent leading to dissatisfaction of consumers in the state.

In order to escape themselves from above liabilities, the management is going to franchise the Nigam, which will only result in increase of tariff and burden to Power consumers of all categories and un-employment in the state.

Association has suggested that Instead of moving towards franchise of Discoms, the management should go ahead for restructuring the Discoms, filling of 52percent of vacant posts, strengthen the Sub-Division level and should help the employees in reducing the line losses, recovery of defaulting amount for better satisfaction of consumers.

Engineers, Workers and public representative should also be called during presentation of franchise Model by consultant invited by Discoms to bring the transparency.

News/Management_proposing_franchisee_system_to_hide_its_failures_Haryana_Power_Engineers_N40137.html


Brought to you by WikidFranchise.org

Risks: Privatization of utilities by franchising, Veil of secrecy, India, 20100308 Management proposing

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License