Gridco To Float Jvs With Private Firms Distribution

Grid Corporation of Orissa (Gridco) will float four joint venture companies in private partnership for power distribution in the state. While the private party will be allowed to hold a 51 per cent stake, the rest will be held by Gridco.

The selection process for private partners for the joint ventures is slated to begin in December. Under the proposed power distribution privatisation plan, Orissa will have different tariff rates for the four separate electrical zones in the state.

The state is divided into four electrical zones on geographical lines -north, south, west and central. A senior Gridco official said here yesterday that the private party will be allowed to work out the tariff structure independently based on the cost of power supply in their respective areas. This will lead to competitive pricing of electricity among the different zones.

Since the source and cost of power for distribution will be uniform throughout the state, the tariff rate or, the cost of supply of energy in respective areas, will be determined by transmission losses prevailing in the specific zone.

Transmission losses increase with distance. So tariff will calculated on the basis of proximity of the electrical zones to the power drawal point Most of the power stations are located in the western part of the state, meaning the tariff will be the cheapest in the western zone, which consists of Sambalpur, Bolangir, Kalahandi, Sundergarh and Boudh districts.

Energy charges are likely to be costlier in the southern, central and northern zone because of their corresponding distance from power source.

The privatisation of distribution network assumes importance following the ultimatum by World Bank, the main sponsor of power reforms process in Orissa, to complete the privatisation process by 2000.