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Home News Power Sector News Orissa - Private Discoms fail to meet OERC deadline

Orissa - Private Discoms fail to meet OERC deadline

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OrissaOrissa Power sector employees demanded cancellation of licences of three private distribution companies (discoms) for failing to meet a deadline on renewal of share holders' agreement. The Orissa Electricity Regulatory Commission's (OERC) had asked Nesco, Wesco and Southco to renew the agreement with the state-owned transmission company, Gridco, by September 30.

The regulatory body had also set the same deadline for the three companies to settle the issue of paying a bond amount of Rs 400 crore to NTPC. "The companies have neither entered into any agreement with Gridco nor paid the NTPC bond amount. Now, the OERC must cancel their licences," said Sarat Chandra Mohanty, general secretary of All Orissa Bidyut Shramik Mahasangha.

In 2005, Mohanty had sent a petition to OERC to cancel the licences of the three companies, prompting the regulatory body to serve a show-cause notice to them in 2006. Citing delay in hearing of the case, Mohanty sat on hunger strike on May 6 this year after which the regulator set the September 30 deadline for the power distributors.

The regulatory body, in its conditional order, had said that it would take action to cancel their licences if the companies failed to improve distribution losses and customer service by the deadline. OERC had said it was giving another opportunity to the companies to arrange funds for capital investment, check pilferage and improve consumer service. tnn Mohanty said since the companies paid no heed to OERC, it now must act.

Mohanty said the state had lost Rs 1,000 crore that it would have received from Centre under the Restructured Accelerated Power Development and Reforms Programme (R-APDRP) scheme because the distribution companies were not giving counter party funding.

Source - Times of India


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