PUDUCHERRY: The Puducherry government has revised its plan to privatise power distribution 100% in the Union Territory and has decided to transfer 51% of its share to a private entity in a company to be formed for distributing power and retain a 49% stake for retail distribution of electricity, said home minister A Namassivayam in the assembly on Wednesday.
He said the decision was taken following protests by employees and opposition MLAs. However, it is subject to HC orders in the case against privatisation filed by some employees, he said.
The current asset value of the UT’s power entity as per the audit report for 2021-22 is Rs 1,030 crore. Its net worth would be Rs.551 crore after depreciation, he said. The electricity sector will not be sold to private companies.
Land ownership will remain with the government and rent will be charged for it. Project, maintenance and distribution of movable assets of the power utility will be outsourced to the private sector, he said, adding that all existing housing and agriculture subsidies will continue even after privatisation.
"Electricity tariff will be fixed by the Joint Electricity Regulatory Authority (JERC) and not by the private company," the minister said. Under Section 133 of the Indian Electricity Act 2003, employment, salary and pension of employees are guaranteed. Also, the salary benefits of employees are likely to increase and there is no possibility of decrease," he said.
The amount spent on the installation of prepaid smart metres will be taken into account during privatisation, he said. When pre-paid metres are introduced, consumers who do not use smartphones can pay in advance. They will be alerted through e-mails/messages about disconnection. He also assured that there won’t be power cuts during festivals, public holidays and calamities.
Dissatisfied with the new policy, DMK and Congress members staged a walkout from the assembly.