Maharashtra power employees oppose the grant of distribution licence to private companies
Kanwar Inder Singh/ royalpatiala.in News/ June 26,2025
Maharashtra power employees and Subordinate Engineers Association (SEA) , strongly object to the proposal of the grant of power distribution licence to Adani and Torrent in different cities of state.
Maharashtra Electricity regulatory Commission (MERC) has sought comments from various stakeholders on June 23 on the applications of Adani and Torrent for grant of power distribution licence in different cities of Maharashtra by July 16.
Adani Electricity has sought a licence for distribution of electricity in Mulund, Bhandup , Navi Mumbai and other areas whereas Torrent Power has sought power distribution for Nagpur, Pune, Vasai, Virar and some other cities.
The Subordinate Engineers Association in a representation to the MERC has demanded that private companies like Adani and Torrent Power should not be given a distribution license in any area or city of state. A public hearing should be held in this regard and the opinions of all employees, customers and various Associations should be heard. Instead of handing over a number of cities to private companies for power distribution , the state power company Mahavitaran should be provided with financial, technical and strategic support to improve the distribution sector. Moreover in the name of creating competition with the private competition in public service, the move is extremely dangerous for customers and employees.
Padamjit Singh chief Patron All India power Engineers Federation (AIPEF) said at Patiala that the Electricity Act section 133 (2) protects the pay and service conditions of employees and their services conditions under any transfer scheme should not less favourable than existing conditions SERC must ensure this provision of Act are incorporated in any transfer scheme.
Employees of Mahavitaran working in these cities fear about their jobs, service conditions, salaries, retirement benefits. Moreover, if a private company takes over the distribution sector, it will lead to an unemployment crisis for permanent, contract and outsourced employees.
Maharashtra power employees oppose the grant of distribution licence to private companies. Further ,as per Sections 42 and 43 of the Electricity Act 2003, it is essential to consider the interests of the consumers, the performance of the existing licensee, and the social impact while granting a distribution license. All these factors must be examined in a transparent and public interest manner while deciding on the application.
Mahavitaran is a state-owned company for the supply in the state, and has been operating for the past several decades. When a private company comes to urban areas, it focuses only on profitable customers, and keeps loss-making or poor customers out of service.
Electricity distribution is a public service. If electricity services are provided by a for-profit private company , it leads to consumer exploitation, unreasonable price hikes, and a decline in the quality of customer servic
