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| UP Power Corp, Torrent ink power distrbution pact |
| Press Trust of India / Lucknow May 19, 2009, 12:33 IST |
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The Uttar Pradesh Power Corporation Ltd (UPPCL) has entered into an agreement with Torrent Power Limited for power distribution in Kanpur and Agra.
Under the agreement, Torrent, which will work as a franchisee in the two cities, will take over distribution system in Kanpur and Agra by August 15, senior UPPCL officials said here.
The MoU was signed by the Kanpur Electricity Supply Company (KESCO), Dakshinanchal Power Distribution Corporation, which had been so far managing electricity supply in Agra, on behalf of the UPPCL and Torrent Power yesterday.
The officials said that with this an exercise to appoint franchisees in other seven cities, where line losses were high and revenue recovery was low, would also be initiated.
These cities include Varanasi, Allahabad, Gorakhpur, Aligarh, Moradabad, Meerut and Bareilly.
The UPPCL officials said that under the MoU, Torrent will distribute electricity in Kanpur and Agra, will maintain power lines and realise revenue in two cities, but the private power company would not be allowed to revise power tariff.
Torrent will also invest around Rs 500 crore in distribution system in Kanpur.
The officials said that at present line losses in Kanpur was staggering 47 per cent. The private company will pay UPPCL at the rate of Rs 2.17 per unit and would reduce the line losses to 20 per cent in the next five years, they said.
Similarly, in Agra, the officials said that line losses were around 42 per cent, whereas revenue of Rs 1.43 per unit was being realised.
"As per the agreement, Torrent will ensure revenue realisation at the rate of 1.96 per cent and would reduce line losses to 15 per cent in seven years. The company will invest around Rs 200 crore in Agra," a senior official said.
Meanwhile, to protest against privatisation of power distribution system in two cities, Power Employees Joint Action Committee, has announced to launch an agitation.
"The UPPCL employees will not allow privatisation of power distribution system in the state. We will soon launch an agitation which will start from May 25," convenor of the action committee Shailendra Dubey told PTI.
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