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Electricity Policy: Cringing before Imperialists
Infrastructure is the most important sector necessary for imperialist
capital to operate. Power, is the crucial aspect in the infrastructure.
It opens avenues for imperialist capital to operate and earn guaranteed,
secured profits from the same. The West Bengal Government, aware of this
fact, encourages and initiates the process of the entry of private
capital in this sector. But, here also it implements the World Bank
directives with a note of ‘dissent’! What a democratic aspiration of the
government led by a ‘communist party’!
From the very onset of liberalisation, the IMF/World Bank have
pressurised for the privatisation of the State Electricity Boards. They
assess that SEBs are incurring losses to the tune of Rs. 25,000/- crores
each year for the production and distribution of electricity. The World
Bank-IMF pursuance resulted in the Electricity Bill 2000 and
subsequently the Electricity Act 2003. The salient features of the act
are: the SEBs (State Electricity Boards) will have to act as a business
organisation; Transmission companies under the Companies Act 1956, will
be reconstituted through public and private investment for generation
and transmission of power from different Generating Companies;
Transmission Companies will enter into agreement with Area
Distributor/Purchaser/Retailer for transmission and distribution of
power. An Electricity Regulatory Commission (Centre/State) will take
policy decisions regarding fixing of tariff/fuel surcharges/cess, taking
the reasonable profit element, at every level, into consideration.
Before dismemberment of SEBs the respective States will constitute
‘corporations’ (Generation, transmission and Distribution) registered
under the company’s act 1956. TRANSCO will come up as the main company
after the unbundling of SEBs and all their assets will vest with the
State Government. The state government in turn will hand over the assets
to the respective stake holders in accordance with the sale deeds. The
liabilities of the erstwhile SEBs including the terminal benefits of
their employees will be met from the sale value of the assets. Thus
received by the government; employees are not entitled to prefer any
suit against the Government/Stake holder/SEB for relief or compensation
for such transfer in any court. The consumers will have to enter into
fresh agreement with the distributors of power, at their own cost etc.58
This bill is a deed of sale of the country’s interests to the MNCs
abroad. The central government has proved itself as an enemy of the
people. How can the left front government lag behind? It is supposedly
implementing the provision of the electricity bill with a voice of
‘protest’!
A booklet entitled "New Electricity Act: Devastation of the people"
has been published by CITU, the workers’ front of the CPI(M) on
16.6.2003. The small booklet is written by Shyamal Chakraborty and
Prasanta Nandy Chowdhury. The former is member of the West Bengal State
Committee and presently CITU President. Hence, regarding the issue it
may be taken for granted that we will have an official view of the CPI(M)
vis-a-vis the Left Front government.
The booklet starts with a note of despair that the Electricity Bill
2003, was passed by a majority in the Lok Sabha and Rajya Sabha and has
been turned into an Act. The booklet criticised all the parliamentary
parties except the CPI and their party. It patted its own back by
stating that Basudev Acharia of the CPI(M) and VV Raghavan of the CPI
opposed the bill in parliament. Oh! What a great act of glorification!
The booklet severely criticised the division of SEBs as per the
Electricity Act 2003 into three components; Generation, Transmission and
Distribution as those are feared to be sold at throw away prices and the
concerned state government would be a mere spectator. In the next para
the booklet praised the state government for its far-sightedness. It is
because West Bengal has divided the SEBs long before the electricity
Bill 2003. The SEBs of Bengal was divided into Generation, Transmission
and Distribution and rural electrification. In the central bill
transmission and distribution are dealt separately and there is a new
section for rural power. But, this minute difference in real terms
matters less for SEB privatisation. Actually the Bengal government under
the cover of ‘left’ phraseology is implementing the provisions of the
Central Electricity Act.
The Front government swears to distribute electricity at low cost to the
consumers. Hence, the booklet of CITU stated that "while other states
are searching for probable buyers, the West Bengal government has
started to build up a mega project of 2000 MW at Sagardighi, in
Murshidabad .... two projects at Bakreshwar of 2100 MW each etc" The
booklet wants to hide the fact that Japan is a partner in the Tista
Canal, Bakreswar Project, the British MNC, Rolls Royce, has been
collaborating with the government for the Balagarh project. Japan is
also with the Purulia pump storage scheme and revamping of the extra
high voltage transmission system including a part of the satellite
communication. All the above projects were undertaken long before the
Electricity Act 2003. All this penetration of foreign capital into the
power sector, in the near future will end up in the take-over any of the
profitable divisions to the private sector under one pretext or the
other.
The above stated CITU booklet severely criticised the system of assuring
16% to 31% profit guarantee to MNCs. The central government will have to
give counter guarantee money to the business houses by siphoning away
funds from the legitimate demands of state governments. But, what did
the left front government do long before? The power purchase agreements
(PPA) concluded with MNCs by the West Bengal government are deliberately
shrouded in secrecy. The Congress government of Maharashtra has to pay
counter guarantee money to Enron. But what about the left front
government? The Comptroller and Auditor General has rapped the West
Bengal State Electricity Board for extending undue favours to the power
utility CESC in it’s latest report tabled in the West Bengal Assembly.
The CAG pointed out that the SEB suffered a loss of Rs 204.69 crore due
to this benevolence.(The Times of India, 17.3.03)
This is the art of deception and betraying the people by one way or
another.
Though the Electricity Bill was tabled in 2000 and enacted in 2003, the
West Bengal government handed over the responsibility of fixing
electricity charges to a separate regulatory commission way back in
1998. Hence the CPI (M), on the one hand accuses the central government
Act to raise electricity charges and on the other, became a forerunner
in implementing the same, with a cunningness that knew no bounds!.
Recently the CESC is campaigning that thousands of workers will be given
VRS; in their words voluntary separation scheme. This will result to
decrease the per unit charge of electricity. But at the same time it is
demanding money in terms of security, metre rent to give VSS to the
employer. The CITU & the state government not only has turned a blind
eye to the above vague logic but also it termed any movement against the
draconian high electricity charges as creating disturbances and
nuisances.
West Bengal is against all nuisances. Hence, since long, it has been
paving the way for a labour trouble free SEB. Previously, to run a
shift, required five workers. Now, it has been reduced to two per shift.
Hundreds of posts, at all levels, in the Board are not being filled up.
All these have been recommended by the CPI (M) leader Dipen Ghosh lead
Committee, in time with the signing of the Dunkel Draft by the
government of India in 1994.59 All are
coincidental! On 12th July the University Institute hall CITU declared
that the CESC has turned 4500 workers as surplus as per the Central
Electricity Act. Later the number was increased to 6000. Actually on
21.1.2003 itself three unions settled with the CESC authorities to shut
down the Mulajor unit of the CESC under the pretext of a Supreme Court
order. But the Supreme Court order also has a clause of re-employment.60
But, who cares! The New Act turned to be an excuse both for the union
and the government.
The left front government is not only playing into the hands of the
imperialists and big comprador bourgeois capital, it is a fore-runner in
implementing each and every clause of the power sector selling out to
MNCs. The people are to suffer. Today, West Bengal has the highest
electricity charges/duty. Recently, a cess was imposed to electrify the
Sundarban people; nay the Sahara Project of tourism of the Sundarbans.
Still, the booklet published by CITU earlier contains only threats and
politics of defeatism. They are trying in vain to hide their faces.
Actually, they are very much exposed, at least in West Bengal!
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