UP powermen demand scrapping of Agra franchise

Uttar Pradesh powermen have alleged the state power utility had incurred losses of almost Rs 440 crore since the handing over of electricity distribution franchise in Agra city to Torrent Power in April 2010 .

After a bidding process, Torrent Power was handed over the franchise by Uttar Pradesh Power Corporation Limited (UPPCL) on April 1, 2010.

According to the powermen, the private company was provided additional benefits to the tune of Rs 145 crore, while UPPCL had incurred additional losses of Rs 295 crore by not adhering to the agreement clauses. Powermen from Power Employees Joint Action Committee (PEJAC) held a meeting to discuss the issue and demanded that the franchise be scrapped. PEJAC convenor Shailendra Dubey said the burden of losses (Rs 440) crore had been passed on to the consumers. Dubey claimed, since the transfer on April 1, UPPCL had sold 2,157 million units (Mu) to Torrent Power at Rs 1.80/unit, while the cost to power utility itself amounted to Rs 3.2/unit. “This resulted in loss of Rs 1.4/unit to UPPCL, which totals Rs 295 crore,” he added. He said, UPPCL were to sell 158.5 Mu to Torrent Power per month at the rate of Rs 1.8/unit. “In a year, Torrent was to be sold 1,902 Mu, while it was supplied 2,157 Mu.” He said, “The private company had to recover Rs 2,000 crore worth of arrears on behalf of UPPCL, which is yet to materialise.”