Franchisees to beef up UP power distribution

To tide over the power pilferage and improve functioning of the energy sector, the Uttar Pradesh government has decided to implement input-based power transmission and distribution system in the urban areas of the state.

The government is likely to select consultants for the scheme within a week. The whole system, if implemented, may take about an year.

Already cleared by the state cabinet, the franchisee system will be implemented in a phased manner, by selecting 1-2 cities in the first phase, official sources told Business Standard.

The respective franchisee will be responsible for strengthening the power distribution system to allow uninterrupted power supply to urban consumers.

The franchisee will be allotted electricity units at a fixed price and the private partner will realise revenue from consumers and in turn repay the government for a profit.

Interestingly, the new proposal has come in the backdrop of recent work boycott by the UP power employees, demanding higher wages according to the Sixth Pay Commission report.

However, the agitation has been deferred till January 19, on the assurance given by state Power Minister Ramveer Upadhyay. An estimated 45,000 power employees, including engineers, observed work boycott from January 2 to January 8.

The state government has shunted two senior power department officials for their apparent failure to break the impasse.

Principal Secretary (energy), and Chairman, UP Power Corporation Limited (UPPCL), V N Garg, and UPPCL Managing Director Avnish Kumar Awasthi have been removed. Secretary to Chief Minister Mayawati, Navneet Sehgal, has been given the additional charge of secretary energy and CMD of UPPCL.

Meanwhile, the Power Employees Joint Action Committee is opposing the franchisee system, claiming it had proved to be a failure at other places in the country, since the franchisee has only profit as its motive.

“The franchisee system is in place at Bhiwandi in Maharashtra only,” Committee spokesperson Shailendra Dubey said.

He claimed that due to the opposition of the people, the system has not been implemented in Nagpur, although companies like Crompton Greaves and Kirloskar were in fray.

“We are ready to pay the government one paise above the franchiser, who quotes highest price for the power units. So, if UP implements the system, we should be given priority,” he added.