Lucknow. The ongoing exercise for privatization of electricity distribution in Uttar Pradesh is currently in a state of stagnation. The tender process proposed to hand over the power supply of 42 districts of Purvanchal and Dakshinchal Vidyut Vitran Nigam Limited (DISCOM) to private hands was expected to start in July, but now it is clear that this process will not start this month.

Draft stuck with the objections of the Electricity Regulatory Commission

The main reasons for this delay are objections raised by the Uttar Pradesh Electricity Regulatory Commission (UPERC). The Commission had sought clarification on several points, returning the draft of privatization in the month of June. So far, the state government has not submitted any formal written reply to the Commission on these objections.

However, an important meeting was held on Monday in which the Chief Secretary of the state Manoj Kumar Singh reached the Commission Headquarters. He was accompanied by Additional Chief Secretary Energy Narendra Bhushan, Dr. Ashish Kumar Goel, Chairman of UP Power Corporation and other senior officials of the Department of Energy. Apart from the Commission Chairman Arvind Kumar, State Election Commissioner RP Singh also attended this meeting, who has been the Chairman of the Electricity Regulatory Commission in the past.

Detailed discussion on the draft in the meeting

In this high -level meeting, which lasted about two and a half hours, all the technical and policy aspects were discussed which were to the objections raised by the Commission. According to sources, the technical advisor of the Department of Energy, while presenting, said which points have been revised or clarified in the draft. The Commission Chairman has asked the officials to submit a formal written answer on this. It was clarified that the Commission would give its final opinion on the draft only when it would study all the points in detail.

Uncertainty of further increased process due to commission’s busyness

It is worth noting that the UP Electricity Regulatory Commission is going to do public hearing at electricity rates for the current financial year 2025-26 from 9 July to 21 July 2025. During this time, the entire functioning rate of the Commission will be busy in the determination process. For this reason, even though the government sends a reply to the Commission before July 21, there is no possibility of any final decision or opinion on the privatization draft before that.