UP clears PPP model in power transmission projects

UPTCL would now be able to call for competitive tariff based bidding for such projects

Uttar Pradesh Cabinet on Thursday cleared the proposal for public private partnership (PPP) model in power transmission projects of UP Power Transmission Corporation Limited (UPTCL).

The corporation would now be able to call for competitive tariff based bidding for such projects. The decision was taken at a Cabinet meeting chaired by Chief Minister Akhilesh Yadav.

Sources told Business Standard that in the first phase, the corporation was likely to solicit bids for projects worth about Rs 2,000 crore in Agra, Mainpuri and Lalitpur districts for transmission lines of 2,000 km.

“The bidding process would take about six months to complete,” he informed.

The proposal of roping in private partners for the projects had been pending for sometime. The present regime has been supportive of the PPP model in power distribution segment as well, just like the previous Mayawati regime.

In another important decision taken by the Cabinet, the state would stand government guarantee towards issuance of bonds and bank loans being taken by the power distribution companies (discoms) under their financial restructuring programme (FRP) approved by the Centre.

Meanwhile, the government has exempted the registration and stamp duty on the transfer of land from the state housing board and development authorities for the construction of bus stations and depots of the UP State Road Transport Corporation (UPSRTC).

The state would also sign a memorandum of understanding (MoU) with the Union health and family welfare ministry for the second phase of the National Rural Health Mission (NRHM).

In another decision, Farhan Akhtar-starrer biopic on ‘Flying Sikh’ Milkha Singh, ‘Bhaag Milkha Bhaag’ has been exempted from entertainment tax for two months. Children’s film ‘The Little Indian’ has  also been exempted from tax for three months.