LUCKNOW: The state government has decided to hand over the powerdistribution network of five cities, Lucknow, Varanasi, Meerut, Gorakhpur and Moradabad, to private companies. The UP Power Corporation Limited(UPPCL), which got the proposal approved by state cabinet on Friday, will now invite bids from private companies. 

UP energy minister Shrikant Sharma said that private companies will be responsible for maintenance, fault repairing and bill collection. "This would improve power distribution and minimize line losses," he said. The company may also pump money to improve consumer service delivery system. He said that government would improve the power distribution network in rural areas.

The decision, sources said, was driven by government's commitment to Centre's ambitious 24x7 'Power For All' scheme. 

The cabinet gave nod after taking up the case study of Agra where power distribution system was handed over to Gujarat-based company Torrent by Mayawati government in 2010.

The cabinet also approved transfer of UPPCL employees to private franchisee on mutual consent and on not less than present salary. There will be no retrenchment if an employee does not want to join private firm, but he will be transferred to another region.

The power distribution privatization was planned by Akhilesh Yadav government in 2013 but was rolled back amid furious protests by employee unions. A similar situation is brewing again, with employees giving a call to launch a protest from Monday under the aegis of UP Vidyut Karamchari Sangharsh Samiti. Samiti convener, Shailendra Dubey, said that private companies do not come under the ambit of government audit which raises doubts on fairness of the exercise. "In a way, the state government would be giving away its commercial profits to private companies," he said.

Employees in Varanasi staged a demonstration at Purvanchal Vidyut Vitran Nigam Limited headquarters at Bhikharipur on Saturday.

UP Rajya Vidyut Upbhogta Parishad president Avdhesh Verma said, "The government is pursuing privatization of headquarters of various distribution companies to create pressure on other districts." Lucknow is headquarter of Madhyanchal discom, Varanasi of Poorvanchal and Meerut of Paschimanchal distribution company. Kanpur, which has been in news for power theft, has been left out for now.