Latest news with #Purvanchal
Time of India
19-07-2025
- Business
- Time of India
‘Privatisation only way to mitigate Purvanchal, Dakshinanchal losses'
Amid growing protest over privatisation of power distribution companies in the state, Uttar Pradesh Power Corporation Limited chairman Ashish Kumar Goel has claimed that the corporation has decided to privatise Purvanchal and Dakshinanchal to overcome the dual challenge of mounting financial losses and operational inefficiencies in its power distribution network. This will help the corporation to bridge the staggering cash gap and pave the way for a sustainable energy future in UP, he said. In an exclusive interview with Arvind Chauhan, the UPPCL chairman said that privatisation is the only solution to mitigate the losses of Purvanchal and Dakshinanchal discoms and will benefit both consumers and the state. The Case for Privatisation The decision to privatise Purvanchal and Dakshinanchal has been taken after considering their dismal performance across technical, commercial, and financial metrics, said Goel. "These are the worst-performing discoms, leading to frequent transformers damage, tripping, poor billing quality, and low collection efficiency. Unlike better-performing regions like Noida or Lucknow, these discoms have consistently lagged and impacted UPPCL's overall financial health," Goel added. The numbers paint a grim picture. In 2024-25, UPPCL's cash gap—the difference between expenses and revenue—soared to Rs 48,515 crore, up from Rs 39,254 crore in 2023-24. Purvanchal and Dakshinanchal contributed the lion's share to this deficit. Over the past five years, expenses have grown at 8.3%, while revenue has lagged at 6.7%, leading to a cash gap increase of 12.4% annually. "This is an unsustainable model. We're in a debt trap, relying on state funds and loans to cover losses, only to repay them with interest the next year," he emphasised. Despite years of govt investment in infrastructure and loss of funding, the gap persists. About 15% of UP's non-committed budget—excluding salaries—is allocated to the energy sector, with 90% of that going toward subsidies and loss funding. This diverts funds from critical infrastructure development and welfare schemes. Privatization, Goel argued, would free up these resources for more productive uses, such as building schools, hospitals, or modernising the grid. Addressing Consumer and Employees' Concerns Consumers:Privatisation often sparks fears of tariff hikes and job losses, but UPPCL is keen to dispel these concerns. For consumers, Goel clarified that tariffs are regulated by the state's regulatory commission, and privatisation is not inherently linked to price increases. In fact, private players are expected to reduce line losses and curb power theft, which currently burden honest, paying consumers. "The honest consumer is indirectly subsidising those who don't pay," he noted. By improving efficiency, privatisation could stabilise or even lower tariffs for those who pay their bills on time. The chairman drew parallels with successful privatisation models in Delhi, Odisha, Chandigarh, and Dadra Nagar Haveli, where consumer services have improved significantly. In Agra, where Torrent supplies power, middle-class consumers report reliable service, though challenges persist for low-income households unable to pay on time. Goel acknowledged these concerns but stressed that regulatory rules govern discoms, ensuring protections for vulnerable consumers. "Electricity is a commodity. Just like a mobile bill, if you don't pay, service stops. But privatisation doesn't mean leniency will vanish—regulators will ensure fairness," he said. Employees: UPPCL has taken proactive steps to ease concerns. "No one will lose their job," Goel, the 1995 batch IAS officer, assured. Employees of Purvanchal and Dakshinanchal have three options: one, continue with the private discoms on the same or better terms. Second, return to UPPCL. Three, opt for voluntary retirement. Contractual workers, meanwhile, are likely to see increased opportunities as private discoms expand services to meet growing consumer demand. "Private players are better paymasters," Goel added, noting that UPPCL's losses currently limit salary increases. The Financial Imperative The financial rationale for privatisation is stark. The cash gap per unit of electricity is Rs 4.31 for Purvanchal, Rs 4.08 for Dakshinanchal, Rs 3.53 for Madhyanchal, Rs 2.08 for KESCO, and Rs 1.51 for Paschimanchal. These losses, coupled with Uttar Pradesh's low per capita electricity consumption of 723 units annually—compared to India's 1,331 and developed countries' 10 times higher—highlight the need for massive investment. "Govt can't fund this alone. Private investment is the only way to bridge the gap and meet rising demand," ," said Goel. Privatisation will involve selling 51% equity in the discoms, with govt retaining 49% share. As performance improves, the value of govt's stake will rise, as seen in Odisha, where private discoms have started paying dividends within five years. A stakeholder consultation on April 12 revealed strong private sector interest, signalling confidence in the model. A Broader Vision: Renewable Energy and Beyond Beyond privatisation, UPPCL is also focusing on renewable energy to meet its renewable consumption obligation. A recent 2,000 mega watt solar tender, along with agreements for wind, hydro, and battery storage, reflects a commitment to diversifying the energy mix. These efforts aim to reduce reliance on fossil fuels and align with India's sustainability goals. A Message to Skeptics To those wary of privatisation, Ashish Kumar Goel pointed to other sectors like telecom and airports, where private participation has driven innovation and improved services. "If we want a developed India by 2047, we can't rely on outdated systems. Electricity is the lifeline of modern society—powering hospitals, industries, and data centres. With aspirations rising, consumers demand uninterrupted, high-quality supply, which requires significant investment and efficiency," he said. He further said, "UPPCL's privatization push is not without challenges. A five-year transition period means results won't be immediate, and public perception remains a hurdle. Yet, we are optimistic, as we have witnessed the successful models of other states, and there is an urgent need to break free from the debt trap." "This is a win-win for consumers and govt," he concluded.
Time of India
08-07-2025
- Business
- Time of India
Annapurna Bhawans to boost ration distribution
Lucknow: To improve ration distribution in the state, the govt would construct up to 100 Annapurna Bhawans in each district. The Annapurna Bhawans, to be developed as model fair price shops, will be built in villages in collaboration with gram panchayats and urban local bodies in cities. In urban areas, buildings will follow the cluster model and include a ration shop, a Common Service Centre and a dedicated waiting hall for beneficiaries. For 2023-24 and 2024-25, the govt set a target to build 75 Annapurna Bhawans in each district. In line with this, 3,534 buildings are already completed and nearly 2,000 are under construction. "To strengthen PDS, the govt approved funding for Annapurna Bhawan through fiscal savings. In addition to MGNREGA, funds from the State Finance Commission, MP and MLA funds, Purvanchal and Bundelkhand Development Funds, and other eligible central or state schemes can now be used for this purpose," said a govt spokesperson. In situations where funding is not available, the department of food and civil supplies will allocate funds, drawn from its savings. Provisions have also been made for their maintenance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The official said since funds for these buildings will come from multiple sources, a unified framework has been developed for land selection, operations and rent. District magistrates have appointed nodal officers to monitor the work. A land selection committee chaired by SDM and comprising tehsildar, block development officer, assistant engineer and regional food officer is responsible for site selection.
Time of India
20-05-2025
- Politics
- Time of India
Power employees stage protest against bid to privatise dept
Varanasi: Electricity department employees , under the banner of Vidyut Karmachari Samyukt Sangharsh Samiti , staged a protest at the managing director's office in Bhikharipur on Tuesday against privatisation of Purvanchal and Dakshinanchal Electricity Distribution Corporations. All workers will hold a protest meeting at the Bhikharipur office from 2pm to 5pm on Wednesday. The powermen recited Sundarkand at the Hanuman temple. Purvanchal committee of the state electricity junior engineers organisation agreed to continue their struggle against electricity privatisation on a single platform at the request of the struggle committee, with hundreds of junior and assistant engineers joining the Bhikharipur protest meeting. The struggle committee accused the power corporation chairman of manipulating figures to exaggerate losses and burdening common consumers, with the aim of aiding private companies. Speakers at the gathering said the protest would continue until May 28. The struggle committee has issued notice for indefinite work boycott from May 29 against the privatisation move. Before the boycott, central officials of the struggle committee will begin statewide tours from May 21. The meeting was presided over by O P Singh and conducted by Ankur Pandey. The meeting was addressed by Mayashankar Tiwari, Narendra Verma, SK Singh, Neeraj Bind, Manish Rai, Pankaj Jaiswal, Vijay Singh, Jiutlal, Ved Prakash Rai and others.
