Orissa energy regulator revokes licenses of three firms

Three electricity distribution companies in Orissa managed by Reliance Infrastructure, whose licences were revoked by the state's power sector regulatory commission on Wednesday, have decided to move the tribunal for redressal.

"We are concerned on revocation of our licence by the Odisha Electricity Regulatory Commission. We have always complied with statutory and regulatory requirements as a licensee," said a spokesperson for one of the three companies - Nesco, Wesco, Southco.

"We will approach the honourable Appellate Tribunal for Electricity for redressal," the spokesperson added.

Besides the revocation, the commission temporarily handed over the management control of the three distribution companies to Gridco, which holds a 49 percent stake in the companies.

The principal secretary in the state's department of energy has been directed to provide the necessary supervision.

The commission in its order found the financial conditions of the three licensees in such a state that they were unable fully and efficiently to discharge the duties and obligation imposed on them by their licence as such. They had posted huge cumulative losses and were staring at a negative net worth.

But the commission clarified that the decision was interim.