Privatisation of power distribution: Escoms to submit objections before KERC

Amid the ongoing controversy over parallel power distribution application made by Tata Power Corporation Ltd. in Karnataka, the Karnataka government has asked five State-run electricity supply companies to submit their objection before the Karnataka Electricity Regulatory Authority (KERC), which is set to hear the objections from Friday.

“The application for parallel power distribution has been made before the KERC. The government will make its objection through the Escoms, which have been asked to file individual objections before the KERC,” Chief Minister D.K. Shivakumar told presspersons here on Thursday.

He said that the BJP government in the past had allowed private companies to apply. “Escoms have been asked to submit their disagreement and inform the KERC that the government does not concur with the application.”

Earlier, in the light of protests, the Chief Minister had said that a decision would be taken at the Cabinet, and the issue came up for discussion on Thursday.

There has been Statewide protests against the parallel power supply application from Tata Power. It has been pointed out that urban consumers are likely to shift to the private player, and the involvement of a private company could lead to further losses for Escoms.

Besides, farmers who are benefitting from subsidy on IP sets and the Gruha Jyothi scheme that provides free power to households consuming less than 200 units could be affected.

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In another Cabinet decision, Deputy Chief Minister G. Parameshwara will be heading a group of Ministers to study and evaluate setting up of a new department called Global Investments and NRI affairs. Mr. Shivakumar said that many suggestions had come on the issue and Dr. Parameshwar has been asked to give a report to the Cabinet.