Bhubaneswar: The state government has privatised the electricity sector to provide better services to consumers. However, the exercise has failed to serve the purpose. Many private companies have pocketed profits due to the privatisation of the power sector. But, the exercise has left a huge debt burden on the public exchequer. This apart, the power sector in Odisha has been witnessing technical as well as commercial losses due to poor infrastructure, sources said.
In this scenario, four discoms—Cesu, Nesco, Wesco and Southco—are not paying their pending dues to GRIDCO and Odisha Power Transmission Corporation Limited (OPTCL). In the meantime, the Odisha Electricity Regulatory Commission has handed over the management of Cesu to Tata Power Company Limited (TPCL). The properties of Cesu have been valued at Rs 350 crore.
However, the Odisha Power Employees’ Union has raised questions over the deal. The Cesu is yet to clear the dues worth Rs 2,011 crore to GRIDCO and OPTCL. The latter has sought OERC’s intervention. On the other hand, the TPCL expressed its inability to bear the burden of the parent company. It has filed a review petition at OERC seeking an amendment to the MoU, sources added. The management and operation of the then Cesco was handed over to an American firm. The US-based firm had pushed the electricity company into insolvency and left its operation in 2002. Since then, the OERC was managing the Cesu by appointing an administrative officer.
The TPCL is now operating in the name of Tata Power Central Odisha Distribution. A pact in this regard was signed between the GRIDCO and TPCL. The state government has a 49 per cent share in the discom while TPCL holds the balance. As per the MoU, TPCL will manage Cesu and would reduce its losses. It is learnt that TPCL is not willing to bear the burden of Cesu’s employees. It has shown reluctance to comply with their service conditions. It has filed a review petition with OERC and sought permission to amend the service conditions of employees.