City power distribution to go in private hands
LUCKNOW: Electricity distribution in five Uttar Pradesh cities -Lucknow, Meerut, Moradabad, Varanasi and Gorakhpur -- will be handed over to private franchisees.
The Yogi Adityanath-led cabinet on Friday gave its nod to a proposal in this regard. The decision evoked sharp reaction from power employees’ unions and consumer bodies.
Agra has been getting electricity supply, since a decade, from private player Torrent Power.
A government spokesman said the decision to introduce franchisee model in power distribution in the five cities had been taken with a view to making the state’s power sector financially self-reliant, by checking line losses and getting required capital investment for improving power supply. He said there will be no change in the tariff pattern. Under the proposed system that will be a replication of the Agra model, private franchisees will buy power from UPPCL and supply the same to consumers. The power tariff in these cities will, however, be the same as applicable to any other city in the state.
“The government got an independent study conducted in Agra and found that the private franchisee there had invested Rs 800 crore, line losses had drastically reduced and consumer satisfaction has gone up on all parameters,” he said.
The spokesman said the power employees in the cities where franchisee system was proposed have an option to work with the franchisee, with its consent, on deputation, with no reduction in their salary.
The powermen have sharply reacted to the move and decided to call an emergency meeting in Lucknow to chalk out their next course of action. “We appeal to the chief minister to immediately withdraw this decision in the larger interest of consumers and employees,” all India Power Employees’ Federation chairman Shailendra Dubey said.
UP Rajya Vidyut Upbhokta Parishad chairman Avadhesh Verma said the franchisee model would go against the interests of consumers. “We will oppose it at all levels,” he said.
Under the franchisee model, as in Agra, the UPPCL will invite bids and the franchisees that are selected will be handed over the entire electricity network of the city for next 25 years, or as agreed upon. The franchisees will give a fixed revenue to the UPPCL.