Privatisation of discoms: Draft bidding documents uploaded
Varanasi discom is among the country’s discoms identified for privatisation
LUCKNOW : Bringing information on the issue into the public domain for the first time, the Union power ministry has uploaded the draft standard bidding documents for the privatisation of electricity distribution companies (discoms) in states. According to people aware of the issue, the Purvanchal Vidyut Vitran Nigam Ltd (PuVVNL), also called the Varanasi discom, is among the country’s discoms identified for privatisation.
EMPLOYEES HAVE BEEN ASSURED THAT SERVICE CONDITIONS WILL NOT BE MADE INFERIOR IN ANY MANNER AFTER THEY ARE TRANSFERRED TO PVT COMPANIES
LUCKNOW: Bringing information on the issue into the public domain for the first time, the Union power ministry has uploaded the draft standard bidding documents for the privatisation of electricity distribution companies (discoms) in states.
According to people aware of the issue, the Purvanchal Vidyut Vitran Nigam Ltd (PuVVNL), also called the Varanasi discom, is among the country’s discoms identified for privatisation.
“The ministry of power is pleased to issue the Standard Bidding Documents (SBD) for encouraging and supporting acceleration of Private Sector Participation (PSP) in power distribution utilities across the country,” says the ministry, inviting public comments to the bidding documents latest by October 5.
The uniform SBDs, as uploaded on the ministry’s website on September 22 and to be followed by all states, contains, among other things, the procedure of inviting the technical and financial bids, the terms and conditions for participants in the bidding process, the timeline etc.
As per the SBDs, assets of the existing distribution licensee (discom), other than land, will be transferred to the new entity that qualifies the bids. Land owned or in possession of the existing distribution licensee shall be provided to the successor entity on a right to use basis at nominal charges.
The power employees, who are protesting privatisation of the energy sector, have been assured that service conditions will not be made inferior in any manner after they are transferred from the existing discoms to the private companies that will take over their department.
“Employees of the existing distribution licensee shall be transferred to the successor entity. Such transfer of employees shall be at continued or better service conditions. Further, the concerned State/ UT government shall be responsible for all terminal liability obligations of such employees till their transfer date. The successor entity shall fund necessary contributions towards terminal liabilities on a prospective basis from the date of their transfer,” say the SBDMs.
Also, the power purchase agreements (PPAs) signed by distribution licensees will be transferred to the successor entities and the successor entity will be provided with a clean balance sheet free of accumulated losses/ unserviceable liabilities.
The successful bidders will have to furnish a trajectory on reduction of aggregate transmission and commercial (AT&C) meeting early targets and bringing the losses down to 15% in five years after they take over a discom. State/ Union territory governments have been asked to create an empowered committee for reviewing the entire process and for timely concurrence on the transfer scheme, bid documents/ changes to SBD, bid outcomes and various other decision points forming part of the process.
UPPCL, is purportedly working out assets and liabilities of Varanasi discom as on March 31, 2020 before the discom’s final takeover by a private company.
“The uploading of bidding documents is the first written document in the public domain, vindicating our fears about the government plans on privatisation of power distribution,” UP Power Officers’ Association president and UP Rajya Vidyut Upbhokta Parishad president Avadhesh Kumar Verma said.