Cherry picking deal of private partner triggers controversy

Rafique Aziz

Chhatrapati Sambhajinagar:

A storm of controversy has erupted after a prominent private company proposed to take over power distribution in select urban and industrial areas of Chhatrapati Sambhajinagar and Jalna districts, starting from the next financial year!. The proposed move has triggered strong opposition from employees' unions, who warn of increased electricity costs for consumers and job insecurity for existing staff.

Cherry-Picking of profitable areas

Subordinate Engineers Association (SEA) regional president Avinash Chavan slammed the proposed move, calling it a "cherry-picking deal" designed to benefit private interests.

“The private company is keen only on profit-making zones, urban sectors and industrial estates, while MSEDCL will be left to handle the loss-making rural and agricultural regions,” he said.

Chavan added that instead of establishing its own infrastructure, the private partner plans to use the existing MSEDCL distribution network by paying wheeling charges. “This will ultimately increase electricity bills for consumers. It's a repeat of what happened with the BSNL network, a scam in the making,” he stressed.

Historical setback recalled

Chavan also cited the failed experiment with GTL Company between 2011 and 2014 as a cautionary tale. “That arrangement led to a financial burden of over ₹400 crore on MSEDCL. The power utility, already reeling under ₹80,000 crore in debt, is now trying to offset its losses with another risky partnership. But this move could backfire again, especially at the cost of industrial consumers in our zone,” he warned.

Manpower crunch adds to concerns

The Maharashtra Rajya Veej Tantrik Kamgar Sanghatna (MRVTKS) also voiced strong opposition. According to MRVTKS general secretary Syed Zahiroddin, “ We strongly oppose the privatisation. MSEDCL is already facing a severe manpower shortage. Of the 865 sanctioned posts in the city’s jurisdiction, 203 remain vacant. With this kind of understaffing, our current employees are already overburdened. Granting a parallel license to a private player will only increase competition, reduce job security, and risk the future of hundreds of staff.”

“There are 23 sanctioned posts of Class I category, out of which, one post is lying vacant. In Class II, 74 posts are sanctioned, but 59 are working and 15 posts are lying vacant. The sanctioned posts in Class III category is 300, out of which, 244 are existing and 56 are lying vacant. In Class IV, the sanctioned posts are 448, out of which 335 are filled and 113 are lying vacant,” added Zahiroddin.

Scale of operations and what’s at stake

According to MSEDCL sources, the region currently serves 3.5 lakh residential and commercial consumers and 610 industrial customers, powered through 28 substations (each with 33/11 KV capacity).

Why only Urban & Industrial areas?

The selective interest in commercially viable regions undermines the goal of equitable service. Tata Power has expressed interest in obtaining distribution rights in 10 specific zones. It includes Chhatrapati Sambhajinagar Municipal Corporation, Chikalthana MIDC, Shendra MIDC, Waluj MIDC, AURIC, Jalna Municipal Corporation, Additional Jalna Phase 1/2/3 MIDC and Jalna Seed Park MIDC.

What’s next?

The Maharashtra Electricity Regulatory Commission (MERC) will hold a public hearing and virtual review session on July 22 to decide the future of this proposal.