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PRIVATE FRANCHISEE MODEL
Even as Uttar Pradesh
Power Corporation Ltd
has handed over the Agra
city circle to the Torrent
Group under the private
franchisee model, there is
still uncertainty over the
Gujarat-based group getting
the Kanpur circle soon. The
Agra circle was formally
entrusted to Torrent on April
1, but not before intense
antagonism by UPPCL officials
that were opposing the
privatization move. This is
the first instance of privatization
of electricity distribution
in the thickly populated
northern state.
An official of UPPCL told
Electrical Monitor, on conditions
of anonymity, that
though the Agra circle has
been given out, there is
uncertainty over when the
Kanpur city area would be
formally handed over to Torrent
Group, given the stiff
resistance by UPPCL.
The Torrent Group had
signed the distribution franchisee
agreement with
UPPCL way back in May
2009, and it was then felt that
both the circles would be
taken over by the group in a
few months. The agreement
is valid for a 20-year period.
Discussing the Agra city
circle, a senior UPPCL official
said that it covered an
area of 188 sqkm and had
2.70 lakh connections with
annual electricity sales of
1,900 million kwh. Torrent is
not only expected to improve
the existing distribution system
but would also invest
Rs.150 crore in infrastructure
upgrade. The aggregate
technical and commercial
losses in Agra circle are estimated
to be as high as 42 per
cent. Hitherto, the distribution
was managed by Dakshinanchal
Vidyut Vitaran
Nigam Ltd, a subsidiary
of UPPCL. An official
of DVVNL clarified that
Torrent would not take over
the entire Agra zone but
only the urban area circle.
DVVNL manages electricity
distribution in twenty southern
districts of Uttar
Pradesh, under five zones—
Agra, Aligarh, Kanpur,
Jhansi and Banda.
Kanpur city is bogged
down by even higher ATC
losses—estimated at 47 per
cent. It is a much bigger circle-
covering 500 sqkm with
4.9 lakh connections-but
with relatively lower electricity
availability. In 2008-
09, electricity sales were to
the tune of 1,703 million
units. Kanpur city is currently
managed by Kanpur
Electricity Supply Company
Ltd, a subsidiary of UPPCL.
Torrent is expected to take
over only a part of KESCO's
operations. It may be noted
that the Kanpur zone managed
by DVVNL does not
cover areas falling under
KESCO's ambit.
For Torrent, this would be
the second case of becoming
a private electricity distribution
franchisee. In January
2007, it took over the powerloom-
intensive Bhiwandi circle
in Maharashtra. Power
availability and billing realizations
have since improved
at Bhiwandi, it is learnt.
Torrent also distributes
10 billion units of power to
over 2 million customers in
the cities of Ahmedabad,
Gandhinagar and Surat in
Gujarat. This follows Torrent's
taking over of two of
India's oldest power utilities-
Surat Electricity Company Ltd
and Ahmedabad Electricity
Company Ltd.
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