Uttar Pradesh discoms head for privatisation: Consultants to shape new PPP model

New Delhi: Amid protests by employees against the privatisation of electricity distribution companies (discoms) in Uttar Pradesh, the state power corporation has floated a tender inviting consultants and transaction advisers to enable public-private partnership or privatisation of two of its discoms.

The move comes as the state looks to uplift the loss-making discoms - Dakshinanchal Vidyut Vitran Nigam Ltd and Purvanchal Vidyut Vitran Nigam Ltd.

"Our focus is to bring in efficiency and better service.... There are substantial losses in these discoms," an official from Uttar Pradesh Power Corporation told ET.


The official clarified that the model is likely to be a public-private partnership, for which the shareholding has not been decided. The state government will await the consultant's report on the structure of the new distribution system.

The state government's rationale for the decision is to reduce the losses of these discoms, better services, and efficiency.