The BSEB headquarters in Patna

Patna, June 9: The Bihar State Electricity Board (BSEB) has set the ball rolling to privatise the power supply and distribution in 14 districts. It has invited tenders to appoint franchisees for managing the electricity network.

Non-government organisations, electricity consumers’ associations, women self-help groups, entrepreneurs, panchayati raj institutions and registered companies are eligible to be the franchisees. Their assignments would be to distribute bills, read meters, collect revenue, maintain low-tension (LT) wires and attend fuse-off calls so that all connections could be billed. The revenue collected should be deposited at the board office or its account at a designated bank within a specified time on a regular basis.

High-tension wires (industrial consumers) would be out of purview of the franchisees.

According to sources, the franchisees would be paid on the basis of revenue they collect. If any franchisee collects less than 75 per cent of revenue in a specified urban area, it would be paid nothing. The franchisees would be paid four per cent commission if they collect more than 75 per cent revenue.

The commission would increase as the franchisees’ collections increase.

In rural areas, franchisees would be paid nothing if their collection is less than 70 per cent. They would get eight per cent commission against 70 to 80 per cent revenue collection.

When asked about the objective behind the privatisation of the distribution network, a senior official of the board told The Telegraph: “It would ensure quality power supply to consumers and maximise revenue collection besides reducing transmission and distribution loss and electricity theft.”

When Bihar Jharkhand Rajya Vidyut Parishad Field Kamgar Union was contacted for their reaction on the issue, its general secretary Amrendra Mishra told The Telegraph: “We will oppose the privatisation initiative of the board as it will affect our job and will be detrimental to the board’s finances. This is not expected, particularly when the matter is sub-judice in the high court.”

When pointed out that the high court had vacated the stay on the process of appointment of distribution of franchisees in the four cities, Mishra said: “The board has approached the high court through a public interest litigation seeking direction to stop workers from going on strike against the privatisation. We did not go on strike at that time. So the matter is pending in the high court. The board cannot go ahead with this move at this juncture.”

The board has also extended the deadline for inviting bids for appointment of distribution franchisees in four cities — Patna Electric Supply Undertaking area, Muzaffarpur, Bhagalpur and Gaya — till June 20.

In the light of the Patna High Court’s order on May 18 where it vacated the stay on the appointment of distribution franchisees in the four cities, the board has extended the date for inviting the bids.

On an appeal filed by the board, the high court had vacated the single bench order, which stayed the process of appointment of franchisees in the four cities. The court, however, made it clear to the board that it cannot finalise the settlement in favour of any party till the disposal of the case.