UP Aims to Privatise Two Power Distribution Companies

16 Jan 2025 CW Team

The government of Uttar Pradesh is set to privatise two of its four state-owned power distribution companies, according to a tender issued by the state. This decision comes as Uttar Pradesh, India's most populous state, faces significant power losses and insufficient transmission infrastructure. The state is inviting private firms to form partnerships with, or fully privatise, Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam, as outlined in a tender issued on January 12. Many state-owned power distribution companies across India are grappling with financial losses due to outdated transmission infrastructure and frequent power interruptions. As a result, the government is exploring the involvement of private players to help address these issues.

Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam serve 21 districts each across Uttar Pradesh. Last year, India’s power minister urged states to list their profitable utilities on the stock exchange to attract investment, improve the transmission network, and support the integration of more renewable energy capacity. Private-public power distribution partnerships are already operational in Delhi and Odisha, with Tata Power being a prominent player in this sector, providing services in both regions and major cities like Mumbai.

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