1. Uttar Pradesh cancels distribution pact with Torrent Power

Uttar Pradesh cancels distribution pact with Torrent Power

Giving in to stiff resistance from power employees, the Uttar Pradesh (UP) government finally scrapped the agreement with Torrent Power for electricity distribution in Kanpur, after being unable to hand over the distribution network to the company for six years.

By: | Published: June 24, 2015 1:16 AM

Giving in to stiff resistance from power employees, the Uttar Pradesh (UP) government finally scrapped the agreement with Torrent Power for electricity distribution in Kanpur, after being unable to hand over the distribution network to the company for six years.

The decision was taken in a state cabinet meeting, which was presided over by chief minister Akhilesh Yadav in Lucknow on Monday. The agreement was entered into by the Uttar Pradesh Power Corporation Ltd (UPPCL) in May 2009 during the Mayawati government’s tenure.

Under the agreement, Torrent, which had been awarded the franchise in Kanpur and Agra, was to take over distribution system in both the cities by August 15, 2009. While the Agra franchise was handed over to Torrent, the work in Kanpur had to be put on hold due to the stiff resistance of power engineers who had opposed privatisation and had threatened to launch a state-wide agitation.

According to the MoU signed between UPPCL and Torrent Power, the private company was to distribute electricity in Kanpur, and also maintain power lines and realise revenue in the two cities at a fixed rate of R2.17 per unit for 20 years. As against this, Kesco, the power distribution arm for Kanpur city, has been able to realise revenue of R4.71/unit in 2014-15.

Welcoming the step, Shailendra Dubey, convenor of the Power Employees Joint Action Committee, said this clearly shows that Kesco has been able to realize a higher revenue target than that fixed for Torrent. Had this transfer taken place, the UPPCL would have lost approximately R700 crore in revenue every year, he said.

  1. S
    sid
    Nov 10, 2015 at 4:03 pm
    From my opnion, Torrent Power must be removed from Agra, because it is looting the customers by forcing them to pay extra billf for the units they had not used.
    Reply
    1. Sumit Menaria
      Jun 26, 2015 at 5:58 pm
      Privatization is more effective and innovative.The resistance due to UPPCL employees is a step backwards towards growth.If only benefits to the existing employees is to be considered,government can take certain measures towards their concerns resolve issues mutually.
      Reply

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