E-Paper
Indian conglomerate seeks licence for parallel power distribution in GB Nagar
While Noida Power Company (NPCL), another private company, has been distributing power in Greater Noida for around three decades, the remaining parts of the district, including Noida, get their electricity from government-owned discom Meerut, a subsidiary of UP Power Corporation Ltd (UPPCL).
A country’s leading business house has sought a parallel power distribution licence for Gautam Buddh Nagar district, which comprises Noida and Greater Noida, and a few surrounding villages, people aware of the issue said.
The company, an Indian multinational conglomerate, has formally applied with UP Electricity Regulatory Commission (UPERC) for the same.
While Noida Power Company (NPCL), another private company, has been distributing power in Greater Noida for around three decades, the remaining parts of the district, including Noida, get their electricity from government-owned discom Meerut, a subsidiary of UP Power Corporation Ltd (UPPCL).
The development comes amid the state government’s recent decision not to renew NPCL’s licence, which expires after a year or so.
“One of the biggest corporate houses in the country has applied for a parallel distribution licence for Gautam Buddh Nagar,” a UPERC official confirmed when contacted, and added, “We are examining the application and will take a call in the due course of time.”
The company, he noted, had said in its application that it would create its own power distribution network in the district to supply electricity to consumers after the licence was granted to it.
Gautam Buddh Nagar district, it may be pointed out, is very low on commercial and distribution losses that are below 10% and hence it is seen to be a profitable region for any power distribution company.
Meanwhile, UP Rajya Vidyut Upbhokta Parishad chairman Avdhesh Kumar Verma on Tuesday alleged that UPPCL had proposed a hefty tariff hike for the year 2023-24 on the behest of the private company that has applied for a parallel distribution licence for Gautam Buddh Nagar.
“There is no reason why the UPPCL should demand a hike for the previous two years as well to make up for its deficit,” he observed. “The grant of a parallel licence to a business group to distribute power in Noida and Greater Noida and their adjoining areas will be the beginning of the privatisation of the power sector in Uttar Pradesh,” he said, adding he would oppose any such bid.
Another UPERC official said the Electricity Act, 2003 very much permitted any eligible company—government or private—to seek and get a parallel power distribution licence for any area, provided the company erects its own distribution network for the purpose.
“The provision of parallel licencing was introduced in the Electricity Act, 2003 to encourage competition in the power sector so that consumers can have a choice with a competitive tariff,” he said.
The proposed Electricity (Amendment) Bill, however, does away with the requirement of a parallel licencee to have his own distribution network in its supply area. The proposed provision that the country’s power employees are opposing, permits a parallel licence to use the existing distribution network in lieu of some wheeling charges payable to the network owner.
