Post News Network
Bhubaneswar, April 9: Performance of power distribution companies in the state has shown signs of improvement after handing over the management of these entities to GRIDCO, state Economic Survey said.
Management of three discoms namely SOUTHCO, NESCO and WESCO had been handed over to GRIDCO this year after the revocation of licence of Reliance Infrastructure.
“Pursuant to the revocation of licence of the erstwhile RIL (Reliance Infrastructure Ltd), the management and control of three discoms namely SOUTHCO, NESCO and WESCO along with their assets, interests and rights are vested with CMD of GRIDCO with effect from March 4, 2015,” the survey said.
“Under the new management, the performance of three discoms utilities has shown signs of improvement,” the survey noted.
Last year, Orissa Electricity Regulatory Commission had revoked the distribution licences of three power distribution companies owned by Anil Ambani’s Reliance Infrastructure Ltd.
“One of the major objectives of the privatisation of distribution business is to run it in a viable, efficient and commercially sustainable manner. It was expected and rightly so that a private investor should be able to infuse capital to make necessary investment in network so as to reduce transmission and distribution loss. The present distribution companies took over the distribution business from 1.4.1999. Even after 15 years of operation, the licensees have consistently failed to run the enterprise in a commercially sustainable manner,” the commission had said in its order.
The power distribution companies had a combined arrear of Rs 5,129.44 crore towards Grid Corporation of Orissa Ltd (Gridco). While Central Electricity Supply Utility (Cesu) has an arrear due of Rs 1,872.90 crore, NESCO, WESCO and SOUTHCO – have outstanding dues of Rs 1,110.25 crore, Rs 1,300 crore and Rs 846.21 crore respectively.
