The State Electricity Consumer Council has raised serious concerns over the recent privatization proposals in Uttar Pradesh’s power sector. Council President Awadhesh Kumar Verma has accused certain high-ranking officials within the Power Corporation of conspiring to sell valuable government assets at “throwaway prices.” These actions, he said, seem designed to benefit specific industrial groups rather than the public interest.
Verma pointed out that while ordinary citizens aim to sell their assets at the highest possible value, government officials appeared to be working in reverse—undermining public wealth for private gain. He argued that the entire tender process was drafted with an intent to favor private companies, compromising transparency and accountability.
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Adding weight to the allegations, the Regulatory Commission itself has reportedly raised objections to the privatization tender draft. Verma highlighted this regulatory pushback, stating it validated their suspicion that due process was not being followed. He further demanded a Central Bureau of Investigation (CBI) probe to uncover the depth of collusion between officials and industrial beneficiaries.
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According to Verma, the use of Section 108 of the Electricity Act, 2003—which empowers the state government to issue directions to the Regulatory Commission—was allegedly exploited to fast-track the controversial privatization advice. “This misuse indicates that the state’s executive machinery may also be unknowingly dragged into a scam designed by a few officials,” he said.
Unequal Standards: Employees Penalized, Corporates Rewarded
The Council also pointed out the stark double standards in how performance is evaluated between public employees and private companies. Verma explained that while Power Corporation employees are routinely suspended or penalized for distribution losses, the proposed privatization plan gives industrial players a relaxed target of reducing such losses by just three percent over five years.
“This shows how the privatization process is being gamed in favor of private interests,” Verma said. “If state employees are punished for losses, why should corporates be rewarded with leniency?”