The fresh case is that of privatization of power distribution in major towns like Ghaziabad, Varanasi, Meerut and Kanpur. The state government has already handed over a contract to Mekon and company to study the feasibility of privatization and submit a report within a stipulated time. Speaking to TOI, principal secretary (energy), Sanjay Agarwal said that the company has been asked to submit its report expectedly by November. "They would be studying the assets and the incurring lines losses. The power distribution may or may not be handed over to the private companies as per the report," he said.
Besides privatization of power distribution in the major towns, the Akhilesh Yadav government has followed Mayawati's decision to set up power plants, with an installed capacity of 10,000 Mw, under the Memorandum of Understanding route. However, the fate of proposed projects remains shrouded in uncertainty because of non-availability of coal linkages. Significantly, Akhilesh government has given the proposed projects extension, twice - first in June 2012 and then in December 2013.
As per the arrangement, it was the responsibility of the private company to get the coal linkage from the central government. Sources said that but for one project - that of Bajaj - the availability of coal linkage is yet to be given to others. In fact, the state government has already decided to cancel two projects because of non-availability of coal and other reasons.
Interestingly, employee of the power department have been on a war path on the issue saying that the projects should have been initiated in the state sector only.
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