Uttrakhand to privatise power distribution in 2 towns

The Uttarakhand Cabinet has approved the privatisation of power distribution systems in Kashipur and Roorkee circles.

A Cabinet meeting on Monday decided to privatise power distribution in Kashipur circle, comprising Kashipur and Bajpur divisions in Udham Singh Nagar district, and Roorkee circle, comprising the rural and urban divisions in Haridwar district.

Government-run Uttarakhand Power Corporation Limited (UPCL) would invite bids from private players.

Some years ago, UPCL, the sole power distribution licensee in the state, had proposed privatisation of power distribution at Roorkee and Rudrapur in Udham Singh Nagar district. Transmission and distribution (T&D) losses are heavy in this district so are power thefts. The decision was taken when the BJP was in power in the hill state. But the move was opposed by some Congress leaders, led by former state health minister Tilak Raj Behad. Keeping in view the vehement opposition, the government had then put the decision on the backburner.

By taking a decision to privatise, the Harish Rawat government has now chosen Kashipur instead of Rudrapur circle. By doing so, the government has also sent a signal that it was favouring the power sector reforms programme in the state, being made for the first time.

"There may be some opposition but we are going ahead with our privatisation plans," said a top government official.

Behad had said his main apprehension was that the poor would not get power once the distribution system was privatised.

Earlier, the government had stated that it would conduct a detailed study of cities like Agra and Kanpur where the Uttar Pradesh government had handed over the power distribution system to a private company. However, no such survey was undertaken.

According to government statistics, AT&C losses in Roorkee are 32 per cent and Kashipur 22 per cent.

UPCL officials said privatisation would help curtail line losses, due to which the company is in the red.

Comment:

The decision taken by Uttrakhand govt. is impressive.The Uttrakhand govt.will privatise power distribution in 2 towns i.e.Roorkee and kashipur.The Distribution franchisee model will help to reduce the AT&C losses.Presently,in India many DISCOM's are in losses.There is not much investment in Distribution sector as compared to Generation and transmission sector.By inviting private participants in distribution the investment will rise.The Bhiwandi case in Maharastha is an ideal case of DF model in India.