Sunil Jain

Senior Associate Editor, Business Standard

Thursday, September 08, 2005

Dikshit doesn't deliver, again

While Delhi’s citizens were worked up enough over the recent power tariff hikes to take to the streets, worse is to come. In another two years, when the five-year agreement between the Delhi government and the BSES/NDPL power distribution companies (discoms) comes to an end, the government will no longer subsidise the power sold to the discoms — this is being done right now to keep power costs low.
The cost of power purchased by the discoms will then rise to around Rs 2.60-2.70 per unit (of course, with coal/gas prices rising the way they are, the hike would be a lot more), add another 60 paise as the distribution costs, and the power cost will be Rs 3.2-3.3 per unit.
But, since under the agreement signed between the Delhi government and the discoms, theft levels in the capital have to go down to just 33-34 per cent, the discoms will have no option but to charge customers around Rs 4.8 per unit of power — after all, if a third of customers don’t pay for the power they use, those who pay have to make up for this, don’t they?
This is why it becomes imperative for the discoms to reduce theft aggressively, to levels higher than what was committed to. Problem is, and this is where Chief Minister Sheila Dikshit has completely failed to deliver, the Delhi government has not lived up to its promise to provide the discoms the kind of help they need.
While a new law, special courts and police protection was promised at the time of privatisation, in reality, nothing of the sort happened — indeed, even the special police force that was available to the erstwhile Delhi Vidyut Board and, for a while to the discoms, soon disappeared.
Even if you’re not a great supporter of the discoms, and most Delhi-ites fall in this category, the question is how are the discoms to reduce theft from the 50 per cent or so levels they were in 2002? By cutting off connections of the thieves and installing meters that work (accurately, not fast), right?
But how do you do this when, in colonies where there is rampant theft, the discom staffers get beaten up in the absence of police protection, or when you catch a thief but no action gets taken as both the police and the courts have enough on their hands to be distracted by something as non-life-threatening as a power theft?
From the time BSES/NDPL have taken over operations, they’ve detected close to 22,000 cases of theft or faulty meters, in the colonies they were allowed to enter.
While around 5,000 people agreed to pay, the discoms were able to register just 8 (that’s eight) FIRs against the thieves — getting the police to lodge an FIR is one of the most difficult things to do today, and that’s something I can vouch for from personal experience.
Another 151 cases were filed in the two existing courts that were recently designated as special courts for power (since they continue to do their other work, however, they’re hardly special courts)!
Forget special police and/or courts, a recent memo from the commissioner of police to all deputy commissioners talks of a meeting presided over by the Chief Secretary and highlights its conclusions.
Conclusion number one: “Chief Secretary was of the view that no protection will be provided for removal of unauthorised electric connection.” Number two: “Similarly no action/cognisance is to be taken of complaints related to tampered electric meters till a plan is submitted to him by concerned agencies.”
In contrast, West Bengal has a special police force only to attend to power theft complaints at each police station, Karnataka has 39 special police stations, Orissa 34, Andhra Pradesh 31, and so on. West Bengal has 24 special courts to handle only power theft cases, Karnataka has 26, and Andhra Pradesh 24.
Unlike these states, by the way, Delhi does not even have a separate anti-theft legislation. Maharashtra’s law, for instance, provides for a minimum imprisonment of three months and up to five years, terms which are roughly in keeping with the Indian Electricity Act of 1910 which allowed for a maximum imprisonment of three years — Andhra Pradesh, West Bengal and Karnataka also have similar imprisonment tenures.
Most of the states which have such laws allow the power of search and seizure, and lay down an equal punishment for the abetter of the crime. While Maharashtra allows discoms (the licensees) to cut off power supplies to thieves for a minimum of one month, Andhra Pradesh and Karnataka allow this for a period of up to two years.
West Bengal, which also allows disconnections for a period up to two years (with a minimum of three months) is even more stringent — it says that such offenders will not be allowed to get electricity from any other source including captive generation!
Not surprisingly then, when the discoms agreed to roll back half the tariff hike (the other half will be borne by the Delhi government for now, and eventually by the citizens who’ll probably see some tax being hiked), they insisted the government agree to provide special police/courts. Dikshit has promised it’ll happen in 45 days, but given her track record so far, power thieves needn’t feel unduly agitated.

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