Beginning of electricity privatisation in Madhya Pradesh


Report by Kamgar Ekta Committee (KEC) correspondent


The management of the power companies of Madhya Pradesh has started transferring the operation of the power system to private companies.

The Madhya Pradesh Power Transmission Company has awarded a contract for the construction of 17 ultra-high-voltage substations to Hyderabad-based Megha Engineering and Infrastructure Limited, which includes one 400 KV, three 220 KV and thirteen 132 KV substations. After the construction of the substations, the private company will also operate these substations for 35 years.

The management of the private company will have complete control over the substations that will be built by the private company. Further, because of this, there will be no recruitment on new posts in the power company as the officers and employees of the private company will handle all the arrangements.

A few days ago, TSA (Transmission Service Agreement) and SPA (Share Purchase Agreement) were signed between Madhya Pradesh Power Management Company and Messrs. Megha Engineering & Infrastructure Limited.

Handing over the responsibility of substation construction as well as operation for such a long period to a private company amounts to privatisation of substations in reality.



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