Ensuring better electric supply by reducing line loss the Yogi Government has decided to hand over power distribution to private franchise in five cities including lucknow, Meerut, Moradabad, Varanasi and Gorakhpur.
A decision regarding this was taken in the cabinet meeting held here on Friday.
“With an aim to make power sector self sufficient and reduce the line loss the government has decided to give power distribution in private hands. The private players, who will work as franchise, will pump in money if required which will ultimately improve the delivery system,” a government spokesman said justifying the Government decision.
The cabinet has approved the Private Franchise Power distribution system under which Government will provide electricity to the private player who in turn will distribute it to consumer. He will be responsible for fault repairing, maintenance and bill collection.
“Such system is already in place in Agra. An independent study has proved that franchise has pumped in over Rs 800 crore which has resulted in improvement in power distribution as well as in consumers’ satisfaction. The line loss has come down resulting in better electric supply,” the government official said.
He said government has decided to privatise power distribution in five cities so that government can utilize money in strengthening power distribution system in rural areas. “This will also ensure supply of quality electricity in villages,” he said.
The cabinet has also ensured job security for the employees working in the five cities of lucknow, Meerut, Moradabad, Varanasi and Gorakhpur where power distribution will be handed over to private players. “The services of government employees can be transferred to the private franchise on mutual consent but not at a salary less than what he is drawing at present. If an employee does not want to join private franchise he will not be retrenched but his services will be transferred to other region,” he said.
The government official said that Government is committed to the welfare of its employees. Therefore, despite financial retrains it has given benefits of 7th Pay commission to its employees, he said.
The decision has been opposed by the power employee and engineers saying this decision will take the state to darkness. The Vidyut Karamchari Sangharsh Sanyukt Samiti has called a meeting on March 17 to chalk out its startgey.
Chairman of the Samiti Shailendra Dubey said that instead of privatization UP Government should adopt Gujarat model which will give results within one year. “CM should review this decision,” he said.
In another Decision Cabinet has also approved expansion project of Panki Thermal Power project