Discoms to hire pvt firms to cut off rural defaulters’ supply
Has asked all the five discoms to invite tenders to engage outside agencies
LUCKNOW: Not able to do it on their own, government-owned power distribution companies (discoms) that are reeling under a deep financial crisis will hire private agencies to snap electricity connections of defaulters in rural area in Uttar Pradesh, sources dealing with the issue revealed.
The UP Power Corporation Ltd (UPPCL) has asked all the five discoms to invite tenders to engage outside agencies for a limited period of two years to carry out mass disconnections of all the rural households that have more than ₹1,000 power dues pending against them.
The corporation has admitted that snapping power supply of defaulters to recover dues is a big challenge as the department does not have resources to carry out disconnections.
The action, however, if initiated before the Lok Sabha elections that are due in April-May next year, may not suit the ruling BJP in the state politically.
Principal secretary, energy and UPPCL chairman, Alok Kumar in a circular sent to the discoms MDs on November 3,
has referred to the severe financial crisis that has hit the corporation, primarily due to low turnout of villagers to pay their bills.
“As you are aware, the UPPCL is undergoing a severe financial crisis and its total financial deficit upto September of the current financial year has reached ₹8,052 crore which a matter of grave concern,” Kumar said in the circular.
“Since the corporation does not have adequate resources to carry out power disconnections to the desired extent, the amount of arrears is increasing every day and the goal cannot be achieved without large-scale disconnections,” he added.
Kumar asked the MDs to first approach all the rural defaulters and try to persuade them to clear their bills within a given deadline, failing which they should outsource the work to experienced private agencies.
The decision to hire outside agencies for the purpose of disconnections has been taken on the recommendations of a task force constituted by the corporation to suggest ways to increase consumer turnout in villages. The task force comprised officials and engineers of all the discoms. Kumar has also made a model bid document available to the discom MDs asking them to invite bids for hiring an outside agency in keeping with the terms and conditions given in the model document. It is revealed that around 80% of the 1.15 crore rural consumers have not paid any bills between April and September. “Our worry is that our losses will further increase as we have a target of giving electricity connections to all the remaining around 1 crore unelectrified rural households by December end,” an official said.
UP Rajya Vidyut Upbhokta Parishad president Awadhesh Kumar Verma has opposed the move. “Outside private agencies will only harass consumers in the name of disconnection,” he said.