23-12-2011
To,
The Secretary,
DERC, Viniyamaki Bhawan, C-Block,
Malvya Nagar,
New Delhi.
Sir,
I wish to draw the attention of DERC to the Newspaper reports that the Delhi Govt. is thinking of a Bailout package for the DISCOMS. This is being disguised as equity infusion equal to the Share Holding in the Company.
We wish to state that the crisis that DISCOMS are in, is of their own making as they did not put in the efforts to buy cheaper power nor did they maintain Financial Prudence in long term Power Purchase agreements nor did they set up their own generating plants as per PPP agreement amongst other reasons we have raised in DERC Public Hearings.
Today we read in various Newspaper Reports that DISCOMS have defaulted in their payments to NTPC etc and the banks are unwilling to lend them more money because of a poor track record.
We the Consumers have been regular in our Bill payments with DISCOMS being the Collection centres,then where has all the money collected gone. The Generators and The Bankers would not have been so harsh had the default been within manageable limits.
The above reasons do not instill confidence in the stakeholders and further infusion of money will only delay the inevitable at great loss to the exchequer. DERC is reminded that in the last Tariff Order it was announced that Competition will be brought in by introducing more DISCOMS to end Monopoly. DERC has yet to announce the Policy and the Governments Share/Capital Investment in the new DISCOMS has to be kept in mind.
The Government will have to infuse capital into the new DISCOMS equal to their share and will be hard pressed to raise funds at that time. The Government cannot put in all its eggs in one basket and leave the city open to Blackmail of a Blackout.
It is to be noted that such Bailout actions encourage others to follow suit. Just to remind the Hon'ble DERC a similar Bailout was announced by DDA for CWG Village flats. These private players were brought in to bring in Money, Effeciency and Cheaper Services, instead experience shows that these players actually came in without investing anything and set up shop on our land, out of our offices, with our money and make huge profits on Guaranteed returns (16%) on money raised from our Banks at 6% to 9% interest .......a clean profit of 7% to 10% without moving a finger ........ the less said of the Performance Standards the better.
The Consumer is still saddled with massive load shedding nor do we get stable power and the Inverters have become permanent fixtures. The Government has to stop investing in this Failed Concept of Private Public Partnership ......... Its time we think of Only Private or Only Government enterprises like in Telecom for greater Accountability.
Today we are getting the worst of both worlds ....... with the Private and Government both keen to protect each other and the consumer footing the Bill.
PLEASE STOP THIS BAILOUT ATTEMPT and PUSH FOR A SPEEDY CAG AUDIT.
Warm Regards,
sd/-
Rajiv Kakria
Chairman, E-Block GK-I, RWA
No comments:
Post a Comment