The ailing power sector in the state got a major boost on Tuesday with the UP government gearing up to privatise the power distribution system in at least four major cities ? Ghaziabad, Kanpur, Meerut and Varanasi.
The privatisation will be done under the public-private-partnership (PPP) model.Under the PPP model, the state government will set up the infrastructure and the private firm will take care of power distribution and revenue realization.
The government invited proposals for the selection of a technical consultant to prepare a feasability report for the project. The consultant would be selected through an open competitive bidding process in two parts and the last date for the submission of response is May 13.
?The consultant will come out with a feasibillity report on the power situation in these four cities and suggest ways to renovate, strengthen and modernise it through PPP. It will also invite private companies to bid for these cities and oversee the handover process to the selected companies,? said a UPPCL official.
Speaking to FE, the official said privatisation of the distribution sector was important as it had become highly unyeilding and difficult to manage. ?We need to address the issues immediately in order to post a positive trend,? said the official.
