Former Member of Parliament M. Ramadass on Monday requested the Centre to abandon its plan to privatise the Electricity Department (ED) of the Union Territory.
In a letter to Union Minister of State (Independent Charge) R.K. Singh, the former parliamentarian said the Centre should allow the public ED to continue.
In case the Ministry wished to improve the power distribution system in the U.T., the Centre should direct the territorial administration to convert the department into a board with autonomy and accountability, he suggested. “An independent regulatory commission could evaluate the board’s performance.”
Since its inception 64 years ago, the department had made remarkable strides in the distribution of electricity, he said.
“Should we handover all that we have built in the last 64 years to a private player on a platter at throw away price.? What is the rationale in privatising a profit making and robust enterprise?” the former MP asked.
“The private player will not improve the existing facilities. The operator may, instead, try to exploit customers by hiking the tariff,” he added.
“By maximising his profits and filling his coffer, he may proclaim to be more efficient, but at a heavy loss of public welfare. In a small place like Puducherry, one company can distribute electricity which means a monopoly situation and not a competitive market as claimed by the proponents of privatisation,” Mr. Ramadass said in his letter.
Since Electricity is a concurrent subject, the views of the local government should be heard.
“Electricity is a public good like water, roads, to be used by the public. If so, are not the people of Puducherry entitled to an explanation on the virtues of privatisation of their electricity department? People are consulted even on the revision of tariff by the commission but not on denationalisation of their property,” he said.