The power crisis and privatisation of power distribution in the Capital dominated proceedings of the first day of the monsoon session of the Delhi Assembly. While the Opposition alleged of a scam, state power minister Ajay Maken said privatisation was the only way and Delhi consumers would have a better summer next year.
Initiating the discussion, leader of the opposition Jagdish Mukhi (BJP) said the privatisation exercise involved a scam of Rs 5,000 crore. He alleged that valuation of the three privatised distribution companies was not done properly. Also the performance of the two private companies in managing distribution business in other parts of the country was not considered.
The private players had failed to carry out power distribution in Orissa and Kanpur, he added.
Mukhi also criticised the business valuation model adopted by the administration for the Delhi Vidyut Board. It did not factor in depreciation of assets, he added.
If DVB was always a loss-making body, as the government claimed, then promising a 16 per cent return on equity for the private players operating distribution was not justified. He also questioned the timing of the privatisation process.
Responding to the allegations, Maken said the privatisation was timely and the business valuation model was the one followed by the BJP when it went about the Kanpur power privatisation process.
