UP Power Corp invites bids for distribution

The selected franchisee will be allotted units at a fixed price.

Uttar Pradesh Power Corporation Ltd (UPPCL) has invited bids from private companies for transmission and distribution in select urban areas of the state.

The Request for Qualification-cum-Request for Proposal (RfQ-cum-RfP) document is available for the interested parties from today.

While, the RfQs are scheduled to be opened on February 14, the RfP will open on February 16, official sources told Business Standard.

In the first phase, this system will be implemented in Kanpur, Agra, Moradabad, Bareilly and Gorakhpur, where the line and transmission losses are as high as 40 per cent.

Feedback Ventures has been appointed as the consultant to prepare the blueprint for the proposed system. However, the state power employees and engineers are opposing this move.

The selected franchisee will be allotted electricity units at a fixed price and they will realise revenue from consumers and in turn repay UPPCL for a profit.

On the basis of the bidding terms, the net worth of the private firm should be more than Rs 75 crore for Kanpur and Rs 50 crore for other cities.

Besides, the annual turnover of the firm in the last 3 years should be Rs 350 crore for Kanpur, Rs 250 crore for Agra and Rs 150 crore for other places.

The average gross cash accrual of the firm in the last 3 years should be Rs 50 crore for Agra and Kanpur and Rs 25 crore for other places.

Recently, power major Torrent officials had visited Kanpur and Agra to study the transmission system at the two places to gear up for the bidding.

However, they reportedly faced tough time at the hands of the power employees in Kanpur, where power distribution is managed by KESCO (Kanpur Electricity Supply Company Ltd) — a subsidiary of UPPCL.

Power Employees Joint Action Committee spokesperson Shailendra Dubey said they were ready to pay the state government one paise above the franchisee, who quotes highest price in bidding.