Mohinder Verma
JAMMU, Dec 8: Despite making commitment before the Planning Commission of India, the Government has put on hold ‘privatization’ of power distribution system in twin capitals of Jammu and Srinagar cities with the apprehension that such a step may create resentment among the people against it ahead of the elections.
Reliable sources told EXCELSIOR that under the guidance of the Planning Commission of India, the Power Development Department late last year had decided to adopt the Public Private Partnership (PPP) mode in the power distribution system of Jammu and Srinagar cities.
As the decision resulted into public resentment, the Government made it clear that the objective of PPP distribution initially in the cities of Srinagar and Jammu was aimed at eliminating power cuts and ensuring supply of electricity 24×7 without loading any additional tariff burden on consumers. Thereafter, the Power Development Department engaged Feedback Infra, a Delhi based consultancy company for ascertaining feasibility of roping in PPP partners in distribution of electricity in twin capitals, sources said.
The feasibility study was completed by middle of the current year and accordingly a presentation was made before the Chief Minister, Omar Abdullah, who is also holding the power portfolio. During the presentation, Chief Minister stated that the PPP participation both in generation as well as distribution would be welcomed if it ensures increase in indigenous power generation and upgrade supply system without tariff increase.
Thereafter, while making presentation on State’s Annual Plan 2013-14 before the Planning Commission of India on July 9, Chief Minister stated that study on introduction of PPP in distribution system of Jammu and Srinagar cities was completed and further process was underway, sources said, adding “he even informed the Planning Commission that the blue print for rolling out the scheme would be discussed with all the stakeholders and thereafter it would be implemented”.
They disclosed that second step——floating tenders for implementation of blue print has not been initiated during the past six months despite the fact that the same had to be taken shortly after the conclusion of feasibility study. “This is contrary to the fact that several high profile companies including Tatas were expressing their willingness to participate in the power distribution system in twin capitals of the State on PPP mode”, Sources added.
In response to a question, sources informed that when the discussion was initiated on the implementation of blue print, it was felt that privatization of distribution system would not be taken in positive manner by the people especially when the elections are round the corner. “There were apprehensions from certain quarters within the Coalition Government that such a step would become a tool in the hands of Opposition to exploit the public sentiments”, they added.
According to the sources, the amount spent on getting the feasibility study conducted would become unfruitful expenditure if the implementation of the blue print takes more than at least six more months as by that time distribution system would get expanded.
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