HYDERABAD: In what is being seen as the first step towards privatisation of Discoms, the Ministry of Power (MoP) has asked all the States, including Telangana, to hand over their 33 kV substations to transmission utilities. As the transmission utility in Telangana is the TS Transco, the 33 kV assets would go into its fold.
The Centre is thus setting the stage for privatisation of Discoms, under which there would only be 11 kV substations that supply power to the end user.With better upkeep of the 33 kV systems, an incremental revenue of Rs 7,865 crore could be attained per year, on account of reduction of losses in the country, the MoP said in a letter.
According to sources in the State’s Discoms, the move was part of a reform process, which is in motion now.“The Discoms will be given to private agencies as franchises. Up until now, government-owned Discoms were running without a profit motive. Once the Discoms are privatised, the State’s farmers will suffer,” an official said.
The official, reiterating that the State government is opposed to the Centre’s power reforms, said, “We have to wait and watch how the power distribution system takes shape in the coming years.” Sources pointed out that the MoP had already proposed solarisation of agriculture power feeders and roof-top solar for agriculture motors. If the Discoms are privatised, they would opt only for profitable substations in cities and towns where demand for power would be higher.
In his letter to the Chief Secretaries of all the States, Joint Secretary (Transmission) of MoP Mritunjay Kumar Narayan stated that the Discoms should hand over the 33 kV system to the State Transmission Utilities (STU) for better planning, loss reduction and increased supply reliability.It can be done in a phased manner, he stated. ln the first phase, assets in the 33 kV network can be handed over to the STUs, the letter said.
The State government would need to provide financial assistance to the STU for upgrading/modernising their 33 kV assets. If the State is not in a position to offer the same, then the STU can be asked to form JV with Power Grid on a 50:50 equity basis to mobilise their financial resources.The MoP gave these directions as per the recommendations of a committee constituted on the sub-transmission system.