Three power generation companies to be merged to form a new entity
The U.P. cabinet on Tuesday approved the proposal seeking merger of the UP Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL), the UP Jal Vidyut Utpadan Nigam Ltd (UPJVUNL) and the Jawaharpur Vidyut Utpadan Nigam Ltd (JVUNL).
Lucknow: The three power generation entities working in silos will now be merged to form one single body to take care of both thermal and hydro power generation in Uttar Pradesh.
The state cabinet on Tuesday approved the proposal seeking merger of the UP Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL), the UP Jal Vidyut Utpadan Nigam Ltd (UPJVUNL) and the Jawaharpur Vidyut Utpadan Nigam Ltd (JVUNL).
The power employees’ unions have hailed the government’s decision of merger of the three corporations.
The cabinet has authorized the UPRVUNL managing director to execute the Merger and Amalgamation Scheme, 2021 as approved by it.
The JVUN was set up on September 4, 2009 as a special purpose vehicle (SPV) with a view to establishing the Jawaharpur thermal plant in Etah in the tariff-based bidding mode but later the government decided to set up the plant in the public sector and transferred the SPV to the UPRVUNL as its subsidiary company in 2014.
The merger, according to a government spokesman, will not have any financial implication for the government. “The concerning entity will also apply to the Union ministry of company affairs for necessary further action with regard to formation of a new entity etc,” he said.
UPRVUNL MD Guru Prasad said that initially the assets of the Utpadan Nigam and the JVUNL would be transferred to the UPJVUNL and thereafter a new company would be formed in the name of Utpadan Nigam or something similar.
“The merger will ensure synergy of work that the three corporations are doing independently and separately at present and this will result into an overall better performance and greater coordination,” he pointed out.
Welcoming the cabinet decision, UP Rajya Vidyut Parishad Abhiyanta Sangh said that the government had fulfilled their long-pending demand.
“We strongly welcome the decision that is in the interest of the power sector and consumers,” Abhiyanta Sangh general secretary Prabhat Singh said. “We demand the government to also soon bring a law giving protection to engineers against the social elements during raids etc,” he added.