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Home News Power Sector News Scrap Torrent Power's franchisee in Agra: AIPEF

Scrap Torrent Power's franchisee in Agra: AIPEF

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Shailendra DubeyAll India Power Engineers Federation (AIPEF) has demanded the scrapping of electricity distribution franchisee in Agra city to Torrent Power alleging financial losses to Uttar Pradesh Power Corporation Limited (UPPCL). The Federation claimed UPPCL incurred loss of over Rs 53 crore during 2010-11 due to non-compliance of agreement with Torrent. It further pointed towards the alleged non-realisation of Rs 1,800 crore of arrears in Agra.

After bidding, Torrent was handed over the Agra franchisee by UPPCL on April 1, 2010.

AIPEF has written a letter to UP chief minister Mayawati and simultaneously sent copies to the union power minister and secretary, Planning Commission etc.

Federation secretary general Shailendra Dubey maintained that losses were on account of extra energy supplied to Torrent due to non-compliance of terms of Distribution Franchisee Agreement (DFA).

He claimed UPPCL was not charging extra amount for excess energy being supplied to Torrent until September 2010, when AIPEF raised the issue. Thereafter, UPPCL started realising excess energy cost at a very low rate of Rs 2.806/kwh.

The Federation has demanded this aspect be audited by an independent committee comprising expert engineers.

He said the terms stated that UPPCL would provide extra energy to the franchisee, if available.

"Here I would like to mention that UPPCL has no extra energy, rather it is short of energy every month and UPPCL is forced to overdraw from NRLDC (Northern Region Load Dispatch Centre) every month," he wrote.

AIPEF slammed the "loot of public money in Agra" in the name of reform by handing over the whole system free of cost to Torrent Power.

Dubey said Torrent Power be asked to realise UPPCL arrears of Rs 1,825 crore within a month failing which they be charged with 15 per cent interest on the outstanding, while UPPCL stopped supplying excess energy to the private company.

Source- Business standard


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