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Ahead of Mahakumbh, UP govt goes slow on proposed privatisation of two discoms

Jan 08, 2025 05:24 AM IST

It is feared that any formal move on the contentious issue at this juncture could trigger large-scale disruptions in power supply during Mahakumbh

LUCKNOW Amid widespread protests by power employees, the UP government has strategically decided to delay its proposed plans to privatise Agra and Varanasi discoms, which together cater to around 40 districts.

While the government remains firm on its decision to privatise the discoms, as already proposed by the UP Power Corporation Ltd (UPPCL) management, it has opted to formally announce the move only after the completion of the Mahakumbh, said people in the know of things. (Pic for representation)

It is feared that any formal move on the contentious issue at this juncture could trigger large-scale disruptions in electricity supply during the Mahakumbh and likely to cause more resentment among employees.

While the government remains firm on its decision to privatise the discoms, as already proposed by the UP Power Corporation Ltd (UPPCL) management, it has opted to formally announce the move only after the completion of the Mahakumbh, said people in the know of things.

“Our preparations are complete. We are waiting for the conclusion of the Mahakumbh, after which the chief minister is expected to accord his nod to the proposal formally,” said a senior official of the energy department.

“The perceived delay on the government’s part is a strategic step to prevent the agitation from intensifying and avert potential service disruptions during the Mahakumbh,” he added.

Chief secretary Manoj Kumar Singh has called a meeting of the Energy Task Force (ETF) later this week to discuss the appointment of a consultant who will be tasked with preparing a detailed roadmap for the privatisation process.

“The ETF may give its nod to the proposal for appointing a trabeation advisor (consultant) to make a detailed plan for carrying out the privatisation of the two discoms,” he said.

Under the proposal already put forward by the UPPCL, Purvanchal (Varanasi) and Dakshinanchal (Agra) discoms will be divided into three and two new private entities, respectively, and bids will be invited to hand over the same to private players with UPPCL having only 49% share in the new entities.

The proposed privatisation has faced stiff resistance from employees, who fear it may lead to job losses and changes in working conditions. Unions have already threatened to intensify their protest with the invitation of bids for roping in private players.

 
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