The Uttar Pradesh Power Corporation Limited (UPPCL) has overcome legal hurdles in its bid to privatise Dakshinanchal and Purvanchal DISCOMs under the Public-Private Partnership (PPP) model.
The Board of Directors for both DISCOMs has authorised the formation of a new entity to facilitate the privatisation process.
With this development, the process is now set for Cabinet approval of the privatisation draft or Request for Proposal (RFP). The tender process will begin once the proposal receives approval at the upcoming state Cabinet meeting.
This follows a petition filed by the Uttar Pradesh Electricity Consumer Council, challenging UPPCL’s approval of the RFP. The petition, citing Section 131(4) of the Electricity Act, 2003, and an earlier Allahabad High Court order, contended that the Power Corporation lacked the authority over power companies formed under this section. The Court had previously declared these companies as independent entities, questioning UPPCL’s ability to direct or approve privatisation.
To address these concerns, UPPCL obtained authorisation from the Boards of both DISCOMs to proceed with decisions on privatisation, thus clearing the legal obstacles. The management aims to fast-track approval through the Energy Department and Cabinet.
The privatisation plan involves handing over power distribution for both Dakshinanchal and Purvanchal DISCOMs to five private firms.
In response to potential disruptions, the Uttar Pradesh government has invoked the Essential Services Maintenance Act (ESMA) to prevent strikes by UPPCL employees and its subsidiaries for six months, ensuring uninterrupted services during the privatisation process.