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JBVNL ends power pact with CESC & Tatas, invites bidders

Jharkhand Bijli Vitaran Nigam Limited (JBVNL) has cancelled the power distribution franchisee agreement for Ranchi and Jamshedpur signed with Calcutta Electric Supply Company (CESC) and Tata Power, respectively in December 2012. With the cancellation, the distribution company has decided to invite bidders by way of issuing tenders for seven districts, including Ranchi, Jamshedpur, Dhanbad, Deoghar, Hazaribag, Ramgarh and Giridih.

JBVNL MD Rahul Purvar, while addressing the media, said that certain conditions needed to be met by both parties (state and the two power distribution companies) to decide a date of commencement. However, a delay has not made it possible. “Many things have changed in the past three years. The decisions taken in 2010-11 for appointment of distribution franchisee are no longer relevant,” he said, adding that it was the reason for cancelling the agreement.

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JBVNL will review the terms and conditions for selection of distribution franchisee and make changes, if required. Apart from selecting distribution franchisee, the state-owned power distribution utility would also outsource the non-franchisee sub-stations to private parties for operation and maintenance.

Purvar said that the aggregate transmission and commercial losses of the state stand at a whopping 39%, which can be corrected by improving billing efficiency. “We are presently working at 70% billing efficiency and once the sub-stations are outsourced, we can expect 90% billing efficiency. This will help bring down AT&C losses to around 28% immediately,” he said.

This apart, JBVNL has also started work under Restructured Accelerated Power Development and Reforms Programme (R-APDRP) part B. Under this programmer, 11 new sub-stations would be constructed and capacity enhancement of the other sub-stations would also be undertaken.


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