• Source:JND
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The Uttar Pradesh Power Corporation Limited (UPPCL) management resolved legal challenges to proceed with the privatisation of 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 clearance, the path is set for Cabinet approval of the privatisation draft or Request for Proposal (RFP). The tender process is expected to commence once the proposal is approved in the upcoming state Cabinet meeting on Tuesday.

Earlier, the Uttar Pradesh Electricity Consumer Council had filed a petition with the Uttar Pradesh Electricity Regulatory Commission. The petition contested the Power Corporation's approval of the RFP, citing Section 131(4) of the Electricity Act, 2003, and a prior Allahabad High Court order. The Council argued that the Power Corporation lacked authority over power companies formed under this section and that such decisions should rest with the respective DISCOMs.

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The High Court had previously declared all power companies independent entities, raising questions about the Corporation's ability to direct or approve privatisation through its Energy Task Force. In response, the Corporation management obtained authorisation from the Boards of both DISCOMs to make decisions regarding privatisation, effectively bypassing these legal concerns.

With the legal obstacles addressed, the Corporation management plans to fast-track the approval of the privatisation draft through the Energy Department and Cabinet. The privatisation initiative involves handing over the power distribution of Dakshinanchal and Purvanchal DISCOMs to five private firms.

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Meanwhile, the Uttar Pradesh government invoked the Essential Services Maintenance Act (ESMA) to ban strikes by employees of UP Power Corporation Limited (UPPCL) and its subsidiaries for six months. The order extends to employees of all government departments and public sector undertakings, aiming to ensure uninterrupted services during the ongoing privatisation process.