The Mayawati Government on Monday signed a memorandum of understanding (MoU) with the Ahmedabad-based Torrent Power,which will function as a franchisee for distribution of power in Kanpur and Agra cities in Uttar Pradesh.
This is expected to bring an investment of over Rs 700 crore in power sector in six months,improve availability for the consumers and increase Government revenues.
The franchisee company will start functioning in Agra in two months,and after another two months in Kanpur.
The Government made this move with an aim to improve the power scenario which is afflicted by huge transmission losses and rampant power theft.
This is the reason why we have chosen cities where the power transmission and distribution (T&D) losses and power theft are highest but the recovery is lowest, said Navneet Sehgal,chairman and managing director (CMD) of the Uttar Pradesh Power Corporation Limited (UPPCL),after signing the MoU.
The company will purchase power from the UPPCL and will distribute it to consumers for the next 20 years on the rates approved by the UP Electricity Regulatory Commission.
At present,revenue collection in Agra is Rs 1.43 per unit and T&D losses,including distribution losses,theft,non-billing,are to the tune of 42 per cent. However,the franchisee company will pay the Government at the rate of Rs 1.96 per unit and bring down the power losses to 15 per cent in five years.