UP orders scrutiny of Torrent Power, Noida Power over distribution pacts

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The government has ordered financial scrutiny of two private sector companies, and Noida Power, which hold franchisees in Agra and Noida respectively.


Earlier, UP Rajya Vidyut Upbhogta Parishad had written to state energy minister Shrikant Sharma demanding a high-level probe in the light of the various financial and consumer services mandates set in the respective agreements signed with these



Later, Sharma had issued a written order to the state power utility, (UPPCL) to submit a detailed report in the matter within 15 days.


Now acting on the energy minister’s directive, UPPCL managing director M Devraj has constituted a three-member high-level probe committee to conduct an investigation into the allegations levelled by the Parishad and submit a report within 7 days.


The probe committee comprises UPPCL director (commercial) A K Srivastava as the chairman, while UPPCL executive engineer A K Gupta and UPPCL chief engineer (commercial) Shravan Parti are members.


According to Parishad chairman Avadhesh Kumar Verma, the Agra power franchisee was handed over to in April 2010 and under the pact, the company was mandated to reduce the electricity line losses in the city to 15 per cent by March 31, 2017.


Torrent was also expected to realise and recoup to the state energy department outstanding worth several crores of rupees on the power consumers in Agra. However, the power outstanding increased to Rs 2,173 crore by October 31, 2017, which is currently to the tune of Rs 2,500 crore, while only a minuscule amount was returned to the state utility, he claimed.


Similarly, the agreement with Noida Power Company was signed in 1993, yet, Verma claimed, hundreds of villages were still awaiting the promised improvement in power supply.


“I have long been demanding detailed financial scrutiny by the Comptroller and Auditor General (CAG) into the functioning of these two in the larger interests of the state power consumers,” Verma told Business Standard here today.


He alleged while was profiting by procuring cheap power from UPPCL for supplying in Agra, the Noida Power Company was not keen to augmenting consumer services or paring the power tariffs in Noida.

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