'J'khand will profit through franchisee on power distribution'

"It will ensure profit to the state exchequer, will stop power pilferage and the people will get quality power," Munda told the state Assembly here.

Stating that the government's focus was also on rural electrification, he said, "We are trying to take decisions on transmission of power and power production in future ... And we are working seriously to increase productivity and quality of power."

Replying to opposition charges that handing over distribution system to private parties would trigger loss to the exchequer, he said yesterday's agreement would give the government 80 per cent profit and vendors 20 per cent.

The issue was raised in the house after the Jharkhand State Electricity Board signed MoUs with Tata Power and CESC for franchisee for power distribution in Jamshedpur and Ranchi respectively.