Friday, June 24, 2022

UPPCL discom privatisation has been put off but on certain conditions: Chairman

Must read

  • With the stalling of the privatisation plan, a much-awaited reform in the state which has the highest discom losses in the country has also been stalled

  • PUVVNL accounts for the highest AT&C losses (37.98 percent) among the five discoms owned by UPPCL

New Delhi: Following protests by employees against the proposed privatisation of a discom owned by Uttar Pradesh Power Corporation Limited (UPPCL), the plan has now been shelved for three months but on the condition that the finances of the company should improve and the employees will work with the management in that direction, UPPCL Chairman Arvind Kumar told PSU Watch on Wednesday. Employees at the state-run company had been protesting against the decision to privatise one of the five discoms owned by UPPCL — Purvanchal Vidyut Vitaran Nigam Limited (PVVNL).

The employees called the protest off on October 6 after an agreement was reached between the power employees and a Cabinet sub-committee comprising Finance Minister Suresh Khanna, Energy Minister Shrikant Sharma, Chief Secretary RK Tewari and Additional Chief Secretary (Energy) and UPPCL Chairman Kumar. The state government has now decided to assess the position of the discom until January 15.

ALSO READ: UPPCL looking to bring down AT&C losses to 15% in 3 months, says Chairman

If finances do not improve, privatisation of PVVNL will be taken up: Chairman

Kumar said that under the pact, employees have agreed to work with the management in bringing in reforms aimed at improving the financial parameters of the distribution company. The situation will be reviewed after three months and privatisation will be taken up if there is no improvement there, added the UPPCL Chairman. “We will, however, try to take the employees into confidence before proceeding with privatisation, whenever that happens,” said Kumar.

Much-awaited reforms stalled

With the stalling of the privatisation plan, a much-awaited reform in the state which has the highest discom losses in the country has also been stalled. PUVVNL is responsible for electricity distribution in eastern UP, where two politically sensitive constituencies are located — Varanasi, which is represented by Prime Minister Narendra Modi, and Gorakhpur, which is the Assembly constituency of UP Chief Minister Yogi Adityanath. The Purvanchal distribution company accounts for the highest AT&C losses (37.98 percent) among the five discoms owned by UPPCL. According to UDAY portal, the company posted a net loss of Rs 1,550 crore in FY2019-20.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)

- Advertisement -

More articles

- Advertisement -

Latest News