UP ropes in private players for power transmission

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Lucknow: After trying their hands in power generation, the private sector can now try its hands at power transmission and distribution in Uttar Pradesh. In a significant decision, the Mayawati government has decided to introduce power transmission and distribution system through ‘input-based franchisee’ in urban areas. The move is being seen as a bid to ensure better power supply at the consumer end and better revenue realisation.

According to sources in the energy sector, the franchisee will purchase power from the state government and sell it to the consumers and will also strengthen and maintain the distribution network. “This system will not only address the grievances of the consumers but will also cut down on the massive pilferage of power that is on currently,” said a senior official, adding, “Once the system gets implemented, consumers would get uninterrupted power and would also lead to quicker repair of faults.”

The state government will soon be inviting tenders from private players and the company which bids the highest will get the contract. “This would mean that it would be the franchisee’s responsibility to recover revenue, which, at present is the bane of the Uttar Pradesh Power Corporation.

It may be mentioned that transmission and distribution losses of UPPCL have been causing severe discomfort to the state of the corporation’s health so far. Poor power infrastructure, combined with zero or little maintenance, has wrecked havoc with the power scenario in the state. Repeated power cuts due to faulty distribution lines and defective transformers, has become the norm. In fact, the transformer damage rate in the state is a whopping 30 % as against the national average of 2%. An Equipment Quality Control Committee, formed by the Uttar Pradesh Electricity Regulatory Commission had last year pointed out gross anomalies in the procurement of sub standard transformers and transmission cables and pinpointed improper maintenance by the Uttar Pradesh Power Corporation as the chief reasons for the pathetic power situation in the state.