Private firm to distribute power in 3 cities
BHOPAL: With reforms underway in Madhya Pradesh power sector for more than a decade, a private company is all set to start electricity distribution work in three cities as franchisee shortly, a top energy sector official said.
“The three power distribution companies (discoms) have granted franchise to a private firm to start power distribution network to rev up revenue collection in Gwalior, Ujjain and Sagar. This company will do metering, billing, revenue collection, besides operations and maintenance work in the three districts with high power pilferage and poor revenue collection,” he added.
“We have given on franchise small areas to private parties in power distribution network in the past. Now, we have given the work for three big districts,” he added.
“Revenue collection of the three discoms is around Rs 1,000 crore monthly, which is less than the expenditure borne in running the power sector’s show in the state,” he added.
For well over a decade, reforms are underway in the power sector under which different companies were carved out from the now closed down Madhya Pradesh State Electricity Board(MPSEB).
Despite, reforms the three discoms – Central, East and West were running into losses to the tune of crore of rupees. Right now the discoms are struggling hard to control distribution losses and make their system better. The MP Power Generating Company Limited (MPPGCL) too was running into huge loss.
Torrent Power was carrying out power distribution work in Ahmedabad and Bhiwandi in Maharashtra while Spanco followed suit in Nagpur city in Maharashtra.
Source : Times Of India