The All India Power Engineers' Federation (AIPEF) has formally rejected the Indian government's proposal to introduce parallel distribution licences for electricity, labelling the initiative a form of backdoor privatisation that undermines public sector utilities.

The federation stated it would not accept the plan as currently discussed by the Consultative Committee.

AIPEF has called on the Ministry of Power to halt further progress on the policy until comprehensive consultations are held with all relevant stakeholders, including engineering unions and public utility representatives.

The opposition highlights growing friction between industry groups and policymakers over the structure of India's power distribution sector.

Critics argue that allowing parallel licences could fragment the market and erode the financial stability of state-owned distribution companies, which already face significant balance-sheet pressures.

This development adds to a broader pattern of pushback against government energy policies from industry bodies.