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Discom ignored Centre?s norms

india Updated: Sep 12, 2006 10:58 IST

Appointing Franchisees

THE MADHYANCHAL power distribution company ignored the guidelines as laid down by the Central Government for appointment of franchisees for distributing electricity to the villages.

As per the Centre’s Rural Franchisee Scheme, a licensee could appoint a rural franchisee on the basis of competitive bidding. “Franchisee would be selected following a transparent process on the basis of clearly laid down criteria. Wherever feasible, the franchisee should be selected on the basis of a competitive bidding…” says the policy.

However, the discom did not invite any tenders to select a franchisee in the case of villages in the Lucknow districts and appointed the CESS, a defaulter, a franchisee. The agreement between the discom and the CESS is full of loopholes.

The UP Electricity Regulatory Commission (UPERC) had stayed the operation of agreement following a petition to it by the UP Rajya Upbhokta Parishad. The Commission had asked the Madhyanchal to submit all the papers related to the agreement for its prior approval.

Lanco gets ETF nod for Anpara C project

THE ENERGY Task Force (ETF) meeting presided over by Chief Secretary Navin Chandra Bajpai today gave its approval to the recommendations for giving the contract for setting up the long-pending Anpara C power project to the private company Lanco Kondapalli. It also approved the proposal for setting up a 1,000-mw Anpara D power project under the public sector.

According to Principal Secretary (Energy) AK Khurana, the ETF’s recommendations would now be sent to the Cabinet for its nod, most likely next week.

The UP Rajya Vidyut Utpadan Nigam’s Board of Directors had already given its approval to both the proposals last week.

Today, the Energy Task Force found right the Evaluation Committee’s recommendations for awarding the contract to the Hyderabad-based private company Lanco Kondapalli for setting up the 1,000 mw thermal power plant. In its financial bid opened a few moths ago the Lanco had quoted the lowest price for supplying electricity to the State.

The two other bidders the Reliance Energy Ltd and the Essar Power came second and third, respectively. The Lanco will be issued the letter of intent (LOI) for starting the work after the Cabinet gives its nod next week.

The Utpadan Nigam has proposed to take a loan of Rs 5000 cr from the Power Finance Corporation for setting up the 1,000 mw Anpara D thermal power project.