Archive · 25 Jul 2026
AIPEF opposes parallel distribution licence proposal
The All India Power Engineers’ Federation (AIPEF) is against a new plan by the government that would allow private companies to use the electricity distribution networks owned by public companies.
AIPEF says this is a way to privatize electricity distribution, which would hurt public companies and make them financially weak.
The government says this plan will give consumers more choices and better electricity service.
AIPEF disagrees and says the government's claims are misleading.
They also say that Mumbai, which the government uses as an example, is not a good example because it has special rules.
AIPEF wants the government to talk to all stakeholders, including consumers and power employees, before making any decisions.
They warn that if the government goes ahead with the plan, they will protest.
AIPEF strongly opposes the government's proposal for parallel distribution licences, terming it 'backdoor privatisation'.
The Power Ministry claims the proposal will provide consumers with greater choice and improve electricity supply quality.
AIPEF argues that Mumbai is not a genuine example of parallel distribution licensing due to its special regulatory arrangements.
AIPEF questions who will bear the responsibility for network issues and the financial burden of long-term Power Purchase Agreements.
AIPEF demands comprehensive consultations with all stakeholders before any decision is made and warns of a nationwide protest if the proposal is implemented.
- Who
- All India Power Engineers’ Federation (AIPEF) and the Power Ministry
- What
- Opposition to the proposal of grant of parallel distribution licences
- When
- July 25, 2026
- Where
- India
- Why
- AIPEF believes the proposal will weaken state-owned electricity distribution companies and benefit private companies at public cost.
All India Power Engineers’ Federation (AIPEF)
Power Ministry
Purpose of the Proposal
All India Power Engineers’ Federation (AIPEF)
AIPEF terms it 'backdoor privatisation' that will weaken and financially cripple state-owned electricity distribution companies.
Power Ministry
The Power Ministry claims it will provide consumers with greater choice and improve the quality of electricity supply.
Mumbai as an Example
All India Power Engineers’ Federation (AIPEF)
AIPEF argues Mumbai is not a genuine example of parallel distribution licensing, as it involves limited and specifically notified areas with judicial and regulatory arrangements.
Power Ministry
The Power Ministry references Mumbai as an example of successful parallel distribution licensing.
Responsibility for Network Issues
All India Power Engineers’ Federation (AIPEF)
AIPEF questions who will bear the responsibility and liabilities for any interruptions in electricity supply due to faults in the distribution network.
Power Ministry
The Power Ministry has not addressed this issue in their proposal.
- Proposal Discussed
- Parallel distribution licences allowing new distribution licensees to supply electricity using existing networks.
- AIPEF's Stance
- Strongly opposes the proposal, terms it 'backdoor privatisation'.
- Power Ministry's Claim
- Proposal aims to provide consumers with greater choice and improve electricity supply quality.
- Mumbai Example
- AIPEF argues Mumbai is not a genuine example of parallel distribution licensing.
- Responsibility for Network Issues
- AIPEF questions who will bear responsibility for network issues.
- Consultation Demand
- AIPEF demands comprehensive consultations with all stakeholders before any decision is made.
- Potential Protest
- AIPEF warns of a nationwide protest movement if the proposal is implemented.