Andhra Pradesh - Hyderabad   

Discoms to take over power trading

Special Correspondent

HYDERABAD: In compliance with the Electricity Act, 2003, the power trading activities in the State would be transferred from APTransco to the four discoms (distribution companies) with effect from June 10.

Addressing a press conference here on Tuesday, the Finance Minister, K. Rosaiah, said the Government would issue a notification on June 9 for transfer of trading business to discoms. The Act mandated the transfer to pave way for creation of multi-buyer markets to ensure competition. All these years APTransco was the single buyer.

The generation capacity would be allocated to the discoms based on demand. The following would be the allocation to the four discoms -- Eastern (16.89 per cent) Southern (22.83) Central (43.42) and Northern (16.86). He said the State Government had no other choice but to transfer the trading functions to the discoms after the Centre refused to extend the June 9 deadline.

Replying to a question, he maintained that the transfer would not lead to any increase in tariff. He said the new structure was expected to bring substantial financial and operation discipline among the distribution companies. The Government has constituted an interim institutional arrangement to ensure optimal coordination and capacity building in discoms.

Printer friendly page  
Send this article to Friends by E-Mail

Andhra Pradesh

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts: Classifieds | Employment | Updates: Breaking News |

Stories in this Section

Fish medicine administration today
Act fast, civic bodies told
Discoms to take over power trading
Court declines stay
MCH drive gets a fillip
Around the City
In Hyderabad Today

Copyright © 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu