Sailendra Dubey is the Chairman of the All India Power Engineers Federation. In this interview with Paresh Malakar, Sailendra Dubey discusses the critical role of the power sector in India and the current challenges it faces, particularly concerning privatization.
Edited excerpts:
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Paresh Malakar: Mr. Dubey, welcome. As someone intimately familiar with the power sector, could you start by explaining why it’s so important for a country? What’s the fundamental importance of power?
Sailendra Dubey: The power sector is crucial for any country and society because it’s the primary driver of development. More than that, electricity is a lifeline today. Nothing is possible without it. Everyone has a mobile, and it needs electricity to charge. With growing concerns about pollution, electric vehicles are becoming more common, and they also need power.1 Even trains run on electricity.2 Without power, the world would come to a standstill. It’s that vital. Even the concept of “Digital India” wouldn’t exist without electricity.
What is the current state of the power sector in India?
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After independence, even before the Indian Constitution was formed, Dr. Babasaheb Bhimrao Ambedkar established the Electricity Supply Act of 1948 to regulate electricity in independent India. Before that, electricity was a luxury, available only to the wealthy. Dr. Ambedkar’s Act mandated that electricity remain in the government sector.3 All private companies operating then were nationalized, and State Electricity Boards were formed across the country, including the Assam State Electricity Board.
When Indira Gandhi was Prime Minister, the Green Revolution was fueled by electricity, especially for agriculture. Farmers needed water, and in areas with low water tables, electricity was essential for lifting water. This led to the formation of the Rural Electrification Corporation (REC). Thanks to REC, every village in the country is now electrified. This was necessary because electricity is essential for every community.
I want to highlight a crucial point: Electricity is the only commodity sold at different rates to different categories of consumers. No other commodity has this. Why? Because electricity is a lifeline, essential for everyone, and not everyone can afford its full cost. That’s why, across party lines—whether it’s BJP, Congress, DMK, AIADMK, or Asom Gana Parishad—everyone supports free electricity for the farm sector. Consumers below the poverty line also receive heavily subsidized rates.
It’s very important to understand that because electricity is so essential for all sections of society, particularly the poorer sections, they may not have the means to pay for it. Therefore, it’s necessary to subsidize it. This ensures that everyone can contribute to the country’s development. For example, the cost of a mobile recharge card is the same for the President of India as it is for you, me, or a poor person. But electricity tariffs are different. This difference exists because electricity is a fundamental need.4
In the public sector, electricity supply is peaceful and widespread. While public sector power corporations, previously State Electricity Boards, sometimes incur losses, they are the only ones that can supply electricity even at a loss. For the public sector, electricity is a service. For the private sector, it’s a business, a commodity. They are only interested in commercial gains. When it becomes purely a business, poor people and farmers won’t be able to afford electricity.
So, the country, which generates income through taxes and fees, has a responsibility to care for its poorest citizens. If they can’t afford electricity at the competitive prices offered by private players, they will suffer.
Let’s delve into the private sector. What’s happening there, and what are its challenges?
You’ve raised a very good point. Let’s take the example of Mumbai. In most parts of old Mumbai, electricity is managed by the private sector, whereas in areas like Navi Mumbai, it’s still government-controlled. Mumbai is unique because two private companies, Adani Power and Tata Power, operate simultaneously. The domestic power tariff in Mumbai is an astounding Rs 16.71 per unit. Can you imagine any poor person affording electricity at that rate?
This high tariff, especially for consumption above 500 units, impacts even middle-class families. As I said, for private companies, electricity is a business, a market.
Another crucial aspect is the existing infrastructure. Lakhs of crores of rupees have been spent building electricity infrastructure across the country, from Kashmir to Kanyakumari. Private companies are eyeing this built infrastructure.
About a year ago, the Ministry of Power announced the RDSS (Reform Distribution System Scheme). Through this scheme, the Ministry aims to upgrade and strengthen the electricity infrastructure, allocating Rs 3 lakh crore to all states for this purpose. Once this money is spent and the infrastructure is improved, private companies come in and take it over at throwaway prices. It’s like the government spending money to improve the infrastructure, only to hand it over to private players.
Let me give you a recent example: Chandigarh. It’s a Union Territory and a small, beautiful city. The Chandigarh Power Department was government-run and profitable, earning about Rs 200 crores annually. However, on February 1, 2025, the Chandigarh Power Department was handed over to Moen Kap Power for just Rs 871 crores. The assets of the department are worth Rs 22,000 crores! The reserve price in the Request for Proposal (RFP) document was only Rs 174 crores, despite the department generating an annual profit of Rs 200 crores. Furthermore, the entire land was leased for 25 years at just Rs . They’re handing over everything to private players at throwaway prices.
The same process is underway in Uttar Pradesh, where the government has decided to privatize 42 out of 75 districts. Many of the poorest people live in rural villages, particularly in Eastern UP and Bundelkhand, a region with severe water scarcity.
How will these people afford electricity if it’s privatized? How will they even get drinking water if they can’t afford the power to pump it? This is definitely a criminal act. It shouldn’t be happening. It’s not in the larger interest of the people or the power sector itself.
If private companies want to enter the market, they should build their own infrastructure and compete with the public sector. They are taking our existing infrastructure at incredibly low prices. What kind of scheme is this?
As the president of a significant organization, what actions are you taking to address this?
We have just called for a one-day token strike on July 9th. It’s an all-India call.
What are your main demands?
Our main demand is against privatization. The power sector, in the larger interest, should remain under government control. The private sector should not be involved in this manner.
I’ll give you another example. Recently, during the India-Pakistan border escalation and operations in Jammu and Kashmir, missiles were coming from across the border. Despite the bombing and missiles, our power sector employees worked tirelessly to ensure an uninterrupted electricity supply wherever it was needed. This shows that for the larger interest of the country, its safety, and security, the power sector must remain in government hands. If private companies want to enter, they should build their own infrastructure and compete on a level playing field. As you can see, when the government controls the power sector, rates are competitive, and consumers get power at very reasonable prices.
There’s no justification for the government building all the infrastructure, only for private players to then take over and raise tariffs.
As you have a flight to catch, what would be your final message or submission to our viewers?
My submission, or rather my request, to electricity consumers is to remember that power employees are working day and night to ensure you receive electricity. Unfortunately, our work is often only recognized when there’s a problem. If there’s a load shedding or a power failure, everyone abuses us.
I don’t have anything against that, but my request is to bear with the problems. When there are storms or thunderstorms, and your electricity goes out but is later restored, please remember that some power employee was out there working in that storm, in that thunderstorm, when nobody else wanted to leave their home. Please remember that electricity employees are working for the larger interest of the country, for your interest. Please cooperate with them.
So, I’m asking people to remember the dedication of power employees and to participate in the July 9th strike.
Thank you very much, Mr. Dubey.