Even though YSRCP Government has decided to deploy meters for agricultural connections, it has not led to much heartburn in the farmers as of now. They have successfully tackled the issue by promising the farmers that there would be no change in supply of free current. The government convinced the farming community that this metering system is a part of Central Government’s new power reforms. But the real secret lies in handing over the contract of setting up of meters to private firms. It may be worth Rs.1000 crores for five years.
The State government has begun preparations to fix meters to agricultural connections. Officials told farmers that this would help the government deposit the billing amount in the farmer’s account directly. Though some farmers are expressing apprehensions, Jagan is adamant on continuing with it.
Agricultural power connections are spread all over, making setting up of meters a herculean task. As government is giving free power to farmers, the electricity department refrained itself from metering as it requires regular maintenance and incurs additional costs. The department generally collects the reading from central meters which are kept near the transformers and feeders. Bills generated based on the readings are paid to the Discoms by the Government. From now on, Jagan government has handed over the meter reading work to private firms who will handle the process end-to-end. From installing meters to maintenance, from billing to submitting the bills to government, private companies are going to play a key role.
AP has around 17.54 lakh agricultural connections. If the government decides to use Discom employees to fix meters, it would take a lot of time; hence, private companies are being roped in to complete the project. Right from buying meters and fixing it, private companies need to take care of every aspect as per the rules in the contract. The State government has even called for tenders to deploy ‘Smart meters’ in five districts.
How much does each meter cost? How much does their maintenance cost? These are the questions that opposition parties are asking now. According to a ballpark figure, only fixing would cost more than Rs.1200 crores and maintenance for five years need another 2000 crores more. If Government doesn’t opt for private services and goes with Discom, it can easily save Rs. 1000 crores.
Loss to the state’s exchequer…
It is understandable to use the services of private companies to gather meter readings, but having them do all the activities right from buying meters to billing can pose a serious threat to Discoms in the future. Expenditure for maintenance and reading activities for one year costs Rs. 400 crores if the contract is given to private companies. If the Discom undertakes these activities with its outsourced employees, the expenditure can be saved by half. Opposition parties are alleging that the YSRCP government is handing over the contracts to its sympathizers.
Left parties have warned the YSRCP Government that they will break the meters if installed. They are gearing up for large scale resistance along with farmer groups. If the government goes ahead and deploys meters, and if farmers break them, it would lead to chaos and unintended violence. Foisting cases against the farmers will lead to bad PR for the government which is covering up anti-incumbency with a slew a welfare schemes.
Impending dangers
The Jagan government has already decided to transfer the bill amount into farmer’s account. A question arises that if the farmer, who is already financially stressed, fails to pay the amount and uses it for other purposes, will officials disconnect the power connection? How can he continue agricultural activity without power? Will the government register cases on such farmers?
Jagan must contemplate all these issues before engaging private companies. Employees of these firms will have to confront the farmers who fail to pay their bills. There may be skirmishes which might make unwanted headlines in the media leading to embarrassment for the government.
What will be good?
In order to save Discoms from getting trapped in the clutches of private companies, Government must allow them to fix the meters. In such a scenario, Discom will retain the ownership and can end the contract with private firms whenever needed. Regarding bill collection, state government can use volunteers to collect the bills from the farmers as soon as the amount gets deposited in the farmer’s account. Metering may be good as per Central Government’s electricity reforms but it should not pose a threat to our farming community.