Haryana moves towards franchisee system for power distribution V K Gupta23 November, 2011

The information obtained under RTI shows that Haryana has committed to privatise the power distribution in Gurgaon and Panipat. 2 3 5Share00.0/52345
Ads by Google

Electrical Power Distributionwww.globalspec.comSearch Thousands of Catalogs for Electrical Power Distribution

Free Online Billingwww.sohoos.comGet your free and friendly business management solution for free.
HARYANA WILL soon move the task of power distribution to prime industrial and commercial areas of state to private franchisees despite low losses and high collection efficiency.

This information was received under RTI from the Power Ministry, which had recently organised a state power ministers conference, in which it was stated that Haryana has conveyed that it is in the process of appointing franchisees in urban areas of Gurgaon and Panipat.

According to sources, the consultant firm CRISIL has given four sets of proposals for consideration of state government wherein the franchise may be be introduced in any one of the four areas. These can be Gurgaon city, Gurgaon and Sohna, Gurgaon and Dharuhera and the complete Gurgaon circle. After government selects one of the four alternatives, similar exercise will be done for Panipat.

It may be added that the Haryana Power Engineers Association, in their annual meeting held at Panipat earlier this month, had strongly opposed the proposed move that will not only deteriorate the financial position of Discoms further, but it will also prove to be counterproductive. The losses of Haryana power utilities have increased to Rs. 7100 crore, and loans have touched Rs. 15268 crore. The banks have refused further loans to utilities. The defaulting amount of distribution companies is Rs. 2100 crore.

The Gurgaon and Panipat areas are revenue earning circles as the losses here are minimum while collection efficiency is nearly 100 percent. In case these areas are given to a private party or a franchise the already precarious financial condition of the Discoms would collapse.

Union Power Ministry, in its minutes of meeting, has claimed that the participation of power sector in the management of distribution of electricity has been encouraging. The input based franchisee model of Bhiwandi in Maharashtra has been successful. Franchisee has been appointed in Kanpur and Agra in UP, Nagpur and Aurangabad in Maharashtra has been appointed. MSEDCL intends to appoint franchisees in Jalgaon, Shil-Mumbra-Kalwa, Malegaon and Manmad.

Shaliender Dubey Secretary General All India Power Engineers Federation (AIPEF) claimed that the success story is based on half-truths. The UP Power Corporation Ltd. (UPPCL) is incurring huge losses on account of extra energy being supplied to Torrent Power Co. Ltd. in Agra. Due to non-compliance of terms of Franchisee Agreement UPPCL has lost more than Rs. 53 crore during financial year 2010-11. As per records Torrent got excess energy of 79.352 million units (MU), which was to be charged at Rs.6.9822/unit but UPPCL has only charged Rs.2.806/unit.

Padamjit Singh Chairman AIPEF said that Nagpur and Aurangabad were handed over to private franchisees with no experience in the power sector. Experience of last few months shows that both private companies have miserably failed to manage power supply.