UP proposes to hand over Kanpur power distribution to NTPC

Lucknow, Aug 16 (UNI) The Mayawati government in Uttar Pradesh has moved a proposal to hand over Kanpur Electricity Supply Company (KESCO) to National Thermal Power Corporation (NTPC) for distribution of power in Kanpur.

During the last regime of the Bahujan Samaj Party (BSP) government in the state in 2002-2003, Ms Mayawati had moved a similar proposal to hand over the KESCO to NTPC.

In order to pave way for modernisation of distribution network in the industrial township of Kanpur, a formal proposal would be placed before the Prime Minister Manmohan Singh during his proposed visit here expected in the last week of this month.

Official sources said that the state government would urge the Prime Minister for directing the NTPC, the Central power generation major to take over the ailing power distribution utility KESCO.

Though sources claimed that there was no dearth of investors in power generation sector, but in UP, the real challenge was in power distribution and also realising the revenue from the consumers.

KESCO is the largest revenue earning for the UP Power Corporation with annual revenue of over Rs 400 crore.

''State government is keen for investment in KESCO for improving the overall efficiency and bring down the line losses which were largely due to the rampant power theft,'' sources said.

The state government is against offering budgetary support to the KESCO for improving the power distribution network and is keen to rope in the private capital.

Sources said only a big player in the power industry like the NTPC has the capital to invest for improving the efficiency of the distribution system by upgrading and improving the infrastructure.

The government in 2003 had also approached the NTPC for consultancy on Anpara C thermal project. The NTPC had then proposed to take over the management of KESCO with 51 per cent equity participation.

The government's move was then vehemently opposed by the power employees of the state. The NTPC management had also offered to hold discussions with the unions and other stakeholders to remove any apprehensions or misgivings on the count.

Meanwhile, UP Power employees' joint action committee has announced to oppose the move to handover the KESCO to the NTPC or any other private company.

Organisation's convener Shailendra Dubey said here that firstly this process was not that easy and the government cannot transfer the KESCO to the NTPC or any other company. He said as per the fresh guidelines of the Centre, the disinvestment in any PSU could be done only by inviting competitive bidding.

''If the UP government invites the bid for KESCO then NTPC is free to participate,'' he said.

UNI