Uttaranchal to split power utility

The Uttaranchal Cabinet yesterday decided to bifurcate its power utility to carryout electricity reforms in the state.

Uttaranchal Power Corporation Ltd (UPCL) would be bifurcated into separate companies in the transmission and distribution sectors, said S Krishnan, principal secretary (power), after the Cabinet meeting presided over by Chief Minister ND Tiwari.

While UPCL would distribute and market electricity, a transmission corporation called Transmission Corporation of Utaranchal would be set up soon, he said and added both the utilities would work independently The employees of UPCL will have the option to chose any of the two utilities," Krishnan said.

This was being done in compliance with the Central Electricity Act 2003, which made it mandatory for states to carryout the power reforms, he said.

The Cabinet also decided to set up a power trading corporation to sell electricity. Stating that Uttaranchal would become a power surplus state by 2008-09, Krishanan said the new trading corporation would employ experts.

However, he said the power reforms process would go side by side with the electrification of villages. The government would electrify all the villages by 2007, he added.

The state government has already set up a power regulatory commission, which last year recommended 20-30 per cent reduction in power tariffs.