Torrent Power is set to get the franchisee for distribution of power in Kanpur city. The company had quoted the rate of Rs 2.169 per unit,which was found to be the highest among the bidders.
After negotiations,the company increased the tariff to Rs 2.1744,on which the government has now agreed. The matter will now be referred to the Cabinet for final decision. Admitting that the rate quoted is less than the base price of Rs 2.60 mentioned by the government,the officials of Uttar Pradesh Power Corporation Ltd (UPPCL) said after deduction of all expenses,the Corporation used to get Rs 1.44 from Kanpur. But by giving the distribution to a private company even at a rate of Rs 2.1744,the Corporation will profit as in the absence of expenses,it will get cent per cent tariff, an official said.
Kanpur is the only city for which the UPPCL had received bids from big companies like Torrent Power and Jamshedpur Utility and Supply Company,a Tata enterprise.