NIPEF opposes privatisation of power distribution

NIPEF opposes privatisation of power distribution

The Northern India Power Engineers Federation (NIPEF) has opposed the union government’s initiatives to ‘privatise’ the power distribution across the country. The federal council of the federation in its meeting held on Sunday criticised the mandatory letter of credit (LC) policy mechanism for distribution companies (DISCOMS) issued by the union ministry of power to facilitate the payment of private power producers without similar benefit to state generating companies.

Shailendra Dubey, chairman of All India Power Engineers Federation, said the mandatory system of letter of credit (LC) opening would cause an upheaval in the power sector as they will face cash crunch even to pay the salaries to its employees in some of the states.

In case of power supply stoppage by a private generator, DISCOMS will have to pay fixed charges and they would not be able to purchase power in the open market and the consumers will be the worst sufferers. Read More

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