Agra privatisation bringing huge losses to UPPCL: Powermen’s body

Corpn has incurred a cumulative loss of ₹2,434 cr by supplying electricity to Torrent Power in Agra; In terms of revenue generation and aggregate AT&C losses, govt-owned Kanpur Electricity Supply Company has performed better than Torrent Power , says Samiti leader

LUCKNOW The Vidyut Karmachari Sanyukt Sangharsh Samiti, UP, has claimed that the privatisation of Agra’s power distribution has resulted in annual loss of crores for the Uttar Pradesh Power Corporation Limited (UPPCL).

Demanding rollback of the proposed privatization of Purvanchal and Dakshinanchal discoms, Samiti leaders emphasized that KeSCO’s superior performance should be considered in the interest of both consumers and employees. (Pic for representation)

“The corporation has incurred a cumulative loss of ₹2,434 crore by supplying electricity to Torrent Power in Agra. In terms of revenue generation and aggregate technical & commercial (AT&C) losses, government-owned Kanpur Electricity Supply Company (KeSCO) has performed better than Torrent Power in Agra,” Samiti leader Shailendra Duby said in a press statement here on Friday.

Demanding the rollback of the proposed privatization of Purvanchal and Dakshinanchal power distribution corporations, he emphasized that KeSCO’s superior performance should be considered in the interest of both consumers and employees.

On the 86th consecutive day of protests, power sector employees staged demonstrations across all districts, project headquarters, and in Lucknow.

According to the Sangharsh Samiti leaders, Agra’s power distribution was handed over to Torrent Power on April 1, 2010. Under the agreement, UPPCL purchases electricity at ₹5.55 per unit but supplies it to Torrent Power at ₹4.36 per unit.

“In 2023-24 alone, UPPCL supplied 2,301 million units to Torrent, resulting in a direct revenue loss of ₹274 crore in just one year. Over the years, this gap has cost UPPCL ₹2,434 crore in total,” they claimed.

They highlighted that a similar privatization plan was proposed for Kanpur, but strong opposition from KeSCO employees prevented the transition. Eventually, the government had to cancel the privatisation deal.

Agra houses Asia’s largest leather industry, while Kanpur has lost its textile mills and major industries. Despite this, KeSCO’s financial performance remains stronger than Torrent Power in Agra, the committee pointed.