UP defers power trading company formation

The Uttar Pradesh government has deferred the formation of a power trading company, the only way it could have achieved the objectives of the Electricity Bill, 2003.

AK Misra, chairman of Uttar Pradesh Power Corporation Ltd (UPPCL), told Business Standard, the deadline was off and the government had said that the Act would be reviewed. Since the June 9 deadline was over, UPPCL would continue the job of trading as well.

This is the first time after many years that the UP electricity employees have won any kind of victory in their battle for the restoration of the unified structure of the state power boards.

Shailendra Dubey, general secretary of the All-India Federation of Power Engineers, said: "According to Section 172 of the Electricity Act , 2003 after a year, the transmission, distribution and generation will be done by separate licencees and trading and transmission will be separate activities. This process was to be completed by June 9."

West Bengal, Tamil Nadu, Himachal Pradesh, Kerala, Maharashtra and Punjab had asked for a six-month extension of the deadline. But their demand was rejected.

The federation said power consumers, including farmers, should be taken into confidence before taking any step further.

P has already separated the transmission and distribution functions. Generation too is separate. There are six distribution companies already.

"Since the cabinet has approved of the common minimum programme, the separation of transmission and trading would not be legally binding," says Dubey.