Bhubaneswar: Although the Odisha government has privatised the power distribution sector with a view to provide quality and uninterrupted power supply, the initiative is yet to yield the desired results.
While quality and uninterrupted power supply remain a distant dream, the private discoms made handsome money utilising the infrastructure built with the taxpayer’s money and left the state.
This initiative was started in 80s, when the US-based company AES was the first one to enter into the business. Later, it was Reliance (BSES Ltd) and now Tata has entered the profitable business – operating as Tata Power Central Odisha Distribution Ltd. (TPCODL) (earlier known as CESU) since June 1. A pact in this regard was signed between the GRIDCO and OTPCL.
The state government has 49 per cent share in the discom, while OTPCL holds the balance. While TPCODL has started collecting money from the consumers without spending a single pie, it has filed a petition before the Odisha Electricity Regulatory Commission (OERC) to review its agreement even before completing two months in business.
The hearing was scheduled for July 28, but it has now been postponed to September 1. Hence, all eyes are now on the decision of OERC – whether it will go in favour of the consumers in the state or the company.
That the company has filed a review petition within 60 days shows it has also come here to ‘loot’ the state. After achieving its goal of grabbing CESU, the company is now working with the moto of profit. This is why it has knocked the doors of OERC.
Odisha has two power transmission utilities – Gridco and Odisha Power Transmission Corporation Limited (OPTCL). They are selling power to distribution companies like Wesco, Nesco and TPCODL. Till June 1, CESU’s pending dues was over `2,000 crore to Gridco and OPTCL. As nothing is mentioned about the pending dues of CESU in the agreement it is unclear whether or not TPCODL will bear CESU’s debt burden. Hence, Gridco and OPTCL too have filed petitions before the OERC in this regard. If the OERC does not consider the pleas of Gridco and OPTCL, the financial burden of over `2,000 crore may eventually come on the state government.
Moreover, Gridco and OPTCL would become financially weak and Tata Power, which has entered into the system, will be the front runner in buying the two organizations.
In the past 10 years, the state government has spent `5552.62 crore through various schemes including Rajiv Gandhi Grameen Vidyutikaran Yojana, Saubhagya Yojana, Restructured Accelerated Power Development And Reform Programme (RAPDRP), Odisha Distribution System Strengthening Project (ODSSP) and Biju Gram Jyoti Yojana to develop power infrastructure in the CESU area. But, Tata Power has purchased the stake in CESU estimating the properties to be `350 crore.
