Patna: The South Bihar Power Distribution Company Limited on Thursday took over the power distribution work in Gaya from India Power Corporation Limited, saying the private firm had failed to honour the terms of distribution franchise agreement.

The South Bihar Power Distribution Company Limited (SBPDCL) had served notice to the India Power Corporation Limited (IPCL) on May 23 this year. The order was issued late on Wednesday evening and the SBPDCL personnel took control of the work on Thursday morning.

SBPDCL managing director R. Lakshmanan said apart from the violation of the franchise agreement terms, there were complaints from the general public about faulty billing and about snapping power supply to entire localities in case of non-payment or delayed payment by some consumers.

"Even people's representatives had come up with several complaints against the private franchise," he said.

He said hassle-free supply and addressing people's grievances would be the top priority. The IPCL had been given the distribution franchise of Gaya in 2014 for 15 years.

Sources in the SBPDCL said that apart from people's grievances, the franchise firm was not putting the collected revenue in a common bank account from where the SBPDCL could withdraw it.

"The IPCL owes something around Rs 200 crore to us but the final figures would be arrived at only after arbitration," said a source in the SBPDCL.

Gaya has become the second place - after Bhagalpur in November last year - where the private franchise has been axed. Muzaffarpur remains the only Bihar town where a private franchise distributes power.

Chief minister Nitish Kumar had said in May 2017 that the state government wanted to do away with the franchise system.