CPI(M) Slams Centre's Push for Power Sector Privatisation at 24th Party Congress

Madurai: The 24th Congress of the Communist Party of India (Marxist) has adopted a strong political resolution condemning the Central government's aggressive push toward privatizing the public electricity sector. The resolution, adopted during the ongoing Party Congress, warns that such moves threaten not only the affordability and accessibility of power but also India’s federal structure and food security.
The CPI(M) criticized the BJP-led Union government for what it described as a systematic and multidirectional attempt to hand over public power utilities to private players. "The Centre is in undue haste to privatize state DISCOMs," the resolution states, highlighting the recent example of Chandigarh Power Utility’s privatization, which it claims was carried out forcefully and irregularly despite the utility being highly profitable and efficient.
In Uttar Pradesh, where power sector workers have been on strike for over 130 days, the Party sees another instance of aggressive privatization. A regional meeting of various States and Union Territories was convened on February 20, 2025, to strategize this privatization drive, further raising concerns among stakeholders.
The CPI(M) points out that 52 percent of India’s power generation is already in private hands. It accuses the government of further skewing the playing field by mandating coal imports at three times the domestic rate — a policy they argue could financially destabilize state-run utilities. Meanwhile, nearly 80 percent of renewable energy projects are already under private control.
The resolution also calls attention to the government's broader National Monetization Pipeline (NMP) scheme, under which even renewable energy projects developed by state giants like NTPC and NHPC are being offered to private entities. One-sixth of the Powergrid Corporation’s network is also marked for privatization, along with increased outsourcing of substation management.
The CPI(M) argues that despite failing to push through the controversial Electricity Amendment Bill of 2022, the Ministry of Power has devised alternative mechanisms to enforce privatization. These include creating a virtual private market system where state distribution companies and generators are sidelined, and electricity prices — currently spiking to as high as ₹20 per unit — are dictated by private market forces.
A major bone of contention is the nationwide rollout of prepaid smart meters under the TOTEX model. According to the CPI(M), each consumer may be forced to pay ₹8,000 to ₹12,000 per meter, which will have a limited lifespan of 6-7 years. Once installed, consumers would be subject to Time of Day (ToD) pricing, potentially raising costs significantly during evening peak hours.
The resolution also decries the Centre’s attempt to phase out cross-subsidies in electricity — a move it warns could push irrigation costs to unsustainable levels. It further opposes the proposed shift to Direct Benefit Transfers (DBT), arguing that such a system will leave out vulnerable groups like sharecroppers, tenants, and landless farmers.
CPI(M) leaders argue that the ongoing developments amount to a final offensive against India’s public electricity distribution sector and constitute an attack on the nation’s federal principles. "Massive de-electrification looms on the horizon. Our food security is at stake," the resolution warns.
Calling for nationwide resistance, the CPI(M) appealed to people from all walks of life — particularly electricity workers — to unite in the fight against privatization. The Party reaffirmed its commitment to making the anti-privatisation struggle a central part of its broader campaign against private monopolies in India.