Tata Power is reportedly (according to CNBC-TV18) in the race to privatise two key Uttar Pradesh power distribution companies (DISCOMs) – Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam. Sources revealed to CNBC-TV18 that the company has submitted its bids as part of the state government’s privatisation push, aimed at improving operational efficiency through a public-private partnership (PPP) model. Tata Power declined to comment on the reports of CNBC-TV18.
Key Developments
- Privatisation Plan:
The Uttar Pradesh government invited bids for advisors on the PPP model for these DISCOMs on January 12. The tender aims to facilitate privatisation or partnership arrangements. - Stake Structure:
Under the proposed model, the Uttar Pradesh Power Corporation Limited (UPPCL) will retain a 49% stake, while the private partner will hold a majority 51% stake. UPPCL will also continue handling debt repayments to the state, centre, and lenders. - Objectives:
The initiative seeks to modernize operations and enhance service delivery by leveraging private expertise while ensuring accountability through a joint ownership model.
This development marks another step in India’s efforts to boost private sector involvement in utilities and align with the government’s broader power sector reforms.
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Tata Power