Amid privatisation bid, Puducherry Electricity Department plans to set up Project Management Unit

The Union Ministry of Power has planned to improve operational efficiency and financial sustainability of distribution companies in the country

Amidst the ongoing initiative by the Union government to privatise the power distribution system in the Union Territory, the Electricity Department has invited a Request for Proposal for the appointment of Project Management Agency (PMA) to assist the department in the implementation of Revamped Distribution Sector Scheme (RDSS) in Puducherry.

Under the RDSS, the Union Ministry of Power has planned to improve operational efficiency and financial sustainability of distribution companies in the country by augmenting the power infrastructure.

Accordingly, the territorial administration had submitted a report to the Ministry seeking funds to the tune of ₹350 crore to improve power infrastructure, including installation of Smart Meters, replacement of old transformers meant for distribution and those inside sub-stations.

Since the process of privatisation has already started, the Union government had scaled down the requirements of the U.T. under RDSS and had approved a sum of ₹83 crore for updgradation of the distribution network.

“We have received approval to carry out works to upgrade distribution network for ₹83 crore. For that, we have to appoint a PMA. The selected agency will assist the government in the implementation of RDSS, “ a senior official told The Hindu.

Of the total project cost, 60% of the amount would be borne by the Ministry and the remaining will have to be incurred by the U.T. administration. The amount will be utilised to replace old distribution transformers, conductors, replacement of overhead lines with aerial bunched cables and capacitors.

Meanwhile, the date for submission of bids from interested players to takeover the power distribution network has been extended to January 6.