Karnataka CM Shivakumar hints at closing door on Tata Power for distribution biz in state

Karnataka Chief Minister DK Shivakumar on Monday dropped hints of not allowing the Tata Power to enter the electricity distribution business in the state.

The CM said he will place the subject before the Cabinet and take a decision after discussing it with his ministerial colleagues.

Tata Power, which already handles distribution in Mumbai, Delhi, Odisha and Rajasthan, has applied for five licenses in the state before the Karnataka Electricity Regulatory Commission (KERC).


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Each license covers a minimum of three districts. The company, which plans to handle power distribution in almost half of Karnataka, however, has not included Bengaluru, the largest load centre in the state, in its request for license. The company has been managing distributions either through subsidiaries or through public private partnership (PPP) basis.

Shivakumar, addressing the power sector employees after receiving felicitation from their associations, said he was disappointed that they were opposing the privatization before him and energy minister KJ George now when the Congress was ruling the state, and not when the BJP brought the law in 2003.

Minister George, and chairmen of all distribution companies (Escoms) have conveyed to him that they were opposed to private companies entering the distribution business, the CM said, adding that he had also conveyed his opinion to them.

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“I also have the same opinion (as them). But I will take this subject to the next Cabinet meeting where we will take a decision,” the CM said. He expressed his disappointment with the employees’ union that they did not protest enough or raise their voice when the NDA regime introduced the law.

Shivakumar, addressing the employees, said they laid the power lines all over the state with the support of the government, and now private companies are seeking the authority to provide electricity connections from those lines and make money.

Minister George also said the question of privatization of distribution does not arise as the government entities were very much capable of doing their job.