In Puducherry, a privatization plan and a political row

Balancing Centre’s agenda with workers’ expectations could test AINRC-BJP government

TeaAlthough The move to privatize power distribution in Puducherry In the works for more than two years, the issuance of a tender notice for bids in late September triggered a backlash that has put the government on the backfoot.

On September 27, the electricity department called for bids to sell 100% of its Rs 27 crore shares to a private entity to handle distribution and retail supply of electricity in the union territory. As much as the tender represented the reality of imminent privatization, it was also the specifics related to the sale that raised red flags for employees and opposition. The opposition saw the notice as the culmination of an exercise marked by ambiguity and lack of consultation.

The next day, the Joint Action Council of Electrical Engineers and Employees’ Privatization/Protection Committee started an indefinite strike demanding cancellation of the tender. The council said that Chief Minister N. Rangasamy had “met” his assurance to consult before proceeding with privatization. While the government argues that privatization will “increase efficiency and consumer satisfaction,” the council maintains that the efficiency of the department can be improved without resorting to privatization.

When the proposal for privatization came in 2020, the previous Congress-DMK government led by Chief Minister V. Narayanasamy rejected the cabinet nod and passed a resolution in the assembly against the Centre’s move. The All India NR Congress-BJP government flagged off the proposal after cabinet meetings in November 2021 and May this year.

The strike got the support of power workers from other states. Congress, DMK and Left parties opposed the move, even as AINRC-BJP alliance ally AIADMK demanded a moratorium on privatization till the White Paper came out. The National Coordination Committee of Electricity Workers and Engineers, which is spearheading a nationwide campaign against privatization, sent volunteers to stand in solidarity with the workers. Even as sporadic street protests against power cuts added to poor optics for the government, a blackout that plunged the Puducherry region into darkness for hours intensified the crisis. Fearing sabotage, Lieutenant Governor Tamilisai Sundararajan threatened to invoke the Essential Services Maintenance Act against the striking workers. About 24 hours later, the CRPF was called in to protect the substation’s infrastructure. The police rounded up hundreds of workers.

Describing the arrests as “arbitrary”, Mr Narayanasamy slammed the government for imposing “an undeclared emergency in Puducherry with arbitrary arrests” by deploying the CRPF to intimidate the striking workers and protesting civilians.

The national leadership of the All India Trade Union Congress also condemned the arrest and alleged that the NDA was trying to promote privatization in Puducherry. Even where the BJP was an ally of the government, the Electricity (Amendment) Bill was still under consideration of the Parliamentary Standing Committee on Energy.

About a week after the strike began, Mr. Rangasamy and Power Minister A. Namasivayam interacted with the council to remove the obstacles of the union territory in going against the central policy. He promised to protect the interests of the employees post privatization.

The council, which suggested revision of tender norms to hold 51% of the shares with the government and to reduce the stake of private discoms to 49%, later called off the strike temporarily after the government’s assurance that it would be working with the Centre. Will take the offer.

The opposition, which slammed Mr. Rangasamy for failing to take a firm stand in the cabinet to protect larger interests of Puducherry, has already resumed talks about the state as the central government’s stand on some matters. To protest is the only means to privilege the elected government. , What happens next is electorally important for Mr. Rangasamy, who has successfully branded the AINRC as the custodian of regional interests. Changing public perception about privatization could be a challenge for the BJP, which is keen to contest a lone seat in the 2024 general election.