BENGALURU: Though those opposing privatisation of power distribution are rejoicing over Tata Power Company Limited’s (TPCL) decision to withdraw its proposal before KERC for a licence to supply power in parts of the state, experts and officials have said the battle is far from over.
The bigger challenge ahead is the amendment proposed by the Union Government to the electricity Act, where private companies can apply for power distribution without setting up their own network, they said.
TPCL had applied for a licence to distribute power in parts of the state, where it had to set up its own network and use Escoms’ infrastructure in places where it could not create the same.
Another amendment that has been proposed is to get automatic approval, provided they meet the financial requirements, an energy department official said. If these amendments are not dealt with, then it will be a bigger challenge, he added.
The official said that if the proposal by TPCL had been cleared, there would have been competition. But there was opposition from employees, farmers and various associations.
There are chances of TPCL reapplying for a licence after studying the technical aspects, the official said. Meanwhile, Escoms have decided to improve power supply and strengthen the network on their own. The officials have intensified efforts to ensure there are little or no power cuts.
Kurubur Shantha Kumar, president of the Federation of Karnataka Farmers’ Organisations, said the withdrawal is a victory, but the government should keep its word. The government has promised to supply 8-10 hours of uninterrupted power supply. But in reality only 3-4 hours of power is supplied. This should be addressed, he said.
KPTCL Employees’ Union president K Balaram said the company cannot appeal again. The system provided by the government is upto the mark and there is no scope for any private player.