Akhilesh slams BJP over proposed privatisation of UP power discoms

Lucknow: Samajwadi Party (SP) president Akhilesh Yadav launched a sharp attack on the Bharatiya Janata Party (BJP) over its proposed plan to privatise two major electricity distribution companies (discoms) in Uttar Pradesh. He alleged that the move would lead to higher electricity tariffs, layoffs, and rampant corruption.

“First, the BJP will privatize electricity, then increase its rates. After that, they will lay off employees and hire people on contract while taking commissions from contractors,” Yadav claimed. Taking a further jibe, he added, “Who knows, after electricity, water might be privatized next?”

Yadav accused the BJP of plotting to exploit consumers through inflated electricity bills. “The BJP government will extract money from electricity companies through back-door deals and use this illicit income to remain in power. They aren’t even afraid of public outrage because they believe elections are won through deceit, not votes,” he alleged. “Where people are vigilant and the administration is honest, BJP loses,” he added.

The proposal to transfer electricity supply in 42 districts under the Purvanchal and Dakshinanchal discoms to private companies awaits cabinet approval. According to a Request for Proposal (RFP) approved by the Board of Directors of Power Corporation and the Energy Task Force, the discoms will be split into five sections under a public-private partnership (PPP) model.

The reserve price for each of the five private companies has been set at Rs 2,000 crore. The Energy Task Force has also fixed minimum bid prices for the companies, including Rs 1,010 crore for Gorakhpur, Rs 1,650 crore for Kashi, Rs 1,630 crore for Prayagraj, Rs 1,660 crore for the Agra-Mathura region, and Rs 1,600 crore for Jhansi-Kanpur.

The Uttar Pradesh State Electricity Consumer Council has raised serious concerns about the RFP’s reserve price structure, alleging that it violates the Central government’s standard bidding guidelines. Council President Awadhesh Verma demanded a Central Bureau of Investigation (CBI) probe, asserting that the undervaluation aims to benefit private firms.

Verma claimed that the total assets of the two discoms are worth Rs 70,000 to 80,000 crore, suggesting that the net worth requirement for bidders should be at least Rs 4,800 crore per company, based on the government-mandated 30 percent of total assets. “Setting a reserve price of only Rs 2,000 crore per company is highly questionable,” he said.