Telangana: Privatisation of discoms opposed
The officials said private companies will prefer to take distribution of power only in urban areas where the income would be more.
Hyderabad: A Central government’s proposal calling for the privatisation of power distribution would push discoms to further financial crisis, opined power department officials.
In its draft power reforms bill, which is going to be tabled in the Parliament around July 2018, the Union power ministry supported the privatisation of area-wise power distribution.
The ministry felt that the privatisation of distribution would bring in competition in the sector and help consumers get quality power at cheaper rates.
The officials said private companies will prefer to take distribution of power only in urban areas where the income would be more.
They said in rural areas, where the income would be less compared to urban areas, could not attract any private companies, forcing state-owned discoms to continue their operations in rural areas.
This result in a lopsided market scenario, where the profitable urban centres would go into the hands of private companies, while the loss-making or less income generating villages remaining with state-owned discoms. This will throw the discoms into financial crisis.
A senior official of TS Southern Power Distrib-ution Company (SPDCL) said if the Centre wants to privatise the power distribution system it has to take the entire state as a unit and not the area.
Meanwhile, All India Power Engineers Federat-ion is opposing the Centre’s move. The Feder-ation said once the Bill is passed all discoms will collapse and will fall into financial doldrums.