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Home News Power Sector News JSEB final deal with franchisees in limbo

JSEB final deal with franchisees in limbo

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JSERCThe final agreement with franchisees for distribution and maintenance operations is getting deferred as the Jharkhand State Electricity Board is yet to get the employees co-ordination committee's consent on the same. The employees' union has threatened to go on indefinite strike if the state electricity board implements the franchise system in power distribution in Ranchi and Jamshedpur.

 JSEB has named Calcutta Electricity Supply Company ( CESC) as the Ranchi franchisee and Tata Power as the Jamshedpur franchisee.

The board was supposed to sign an agreement with the chosen franchisees by November end so that the new system becomes operational by December. PK Srivastava, director-public relation at JSEB, said the decision has been taken and the Jharkhand State Electricity Regulatory Commission (JSERC) has been informed. "We have to sign an agreement with the parties to bring every terms and conditions in black and white," he said.

JSEB has plans to hand over power supply, maintenance and distribution of bills to the franchisees to check transmission and distribution (T&D) losses. At present, T&D losses in Jharkhand are estimated to be around 33-35%. JSERC, while finalizing annual tariff, has refused to allow such high rates of T&D losses. JSEB feels if the franchise system is not implemented, then it will continue to incur revenue losses on T&D.

Srivastava said incentive to a franchisee would depend on the percentage of losses they recover. "We are not going to pay a single penny to the franchisee companies as they have to reduce the losses and depending on that, they will get 20% of the amount thus generated," he said.

Prashant Chaturvedi, the convener of the JSEB's co-ordination committee for employees, said they had received the papers of franchisee agreement on Saturday. "The most important letter of intent is missing which forms the basis of agreement being signed by the board and the franchisee partners," he said.

When asked why the co-ordination committee is opposed to the franchise system, Chaturvedi said the model failed in other states. Also, amount of loss to be recovered cannot be estimated unless the board is reconstituted. "Unless the board is reconstituted as generation, transmission and distribution utilities, how can it decide the loss that the franchisee is expected to reduce," he said.

while reiterating the announcement to resort to agitation in case the board enters into franchisee agreement without taking the committee into confidence.

Source- TOI


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