Cuttack, Dec. 26: Orissa High Court has admitted another public interest litigation challenging the Odisha government’s decision to introduce Build Own Operate and Transfer (BOOT) model operation in the state-run Central Electricity Service Utility (Cesu) assigned area by way of franchise agreement with a private company.

Cesu has signed franchise agreement with the Bangalore-based Enzen Global Solutions Private Limited for BOOT model operation in Angul, Talcher and Dhenkanal electrical divisions to bring down its technical & commercial loss in power distribution.

The PIL has sought judicial intervention against adoption of BOOT model operation on the plea that all the three electrical divisions are part of urban areas coming under municipality and development authority jurisdictions.

The Odisha Electricity Regulatory Commission (OERC) had recommended franchisees only in rural and semi-urban areas, the petition contends. Purna Chandra Sahu, 58-year-old Talcher-based social activist, filed the PIL.

“After a preliminary hearing, the high court issued notices last week to secretary, energy department, OERC and Cesu seeking clarification on the matter,” petitioner counsel S.N. Sangneria told The Telegraph.

The PIL contended that there was no rationale for opting for the BOOT model operation in Angul, Talcher and Dhenkanal electrical divisions as power bill collection on experimental basis by engaging NGOs and self-help groups in Chainpal and Nayagarh divisions had proved successful.

Besides, a pilot scheme formulated by OERC had spelled success after being adopted for distribution of electricity in the Balikuda section of Cesu assigned area, the petition said.

Under the BOOT model, the franchisee will maintain distribution, from transformers to metering point of customers, and invest in capital expenditure works related to set-up development involving loss reduction measures vis-à-vis operation, maintenance, meter reading, billing and collection.

This is the second PIL to be filed in connection with adoption of BOOT model operation by Cesu in Angul, Talcher and Dhenkanal electrical divisions. Earlier, one Prabhakar Das, 60, a resident of Dhenkanal, had filed a PIL expressing apprehension that the franchise agreement for BOOT model operation for five years in the three electrical divisions would double expenditure and adversely affect the financial health of Cesu.

The PIL is pending before the high court. Responding to notices on the PIL, Cesu had claimed in a counter affidavit that such apprehensions were unfounded as Enzen Global Solutions Private Limited will as part of the franchise agreement undertake all sort of infrastructure development required in curbing AT & C loss at its cost and the revenue will be shared on incremental revenue share basis.

The franchise shall guarantee the present level of collection of Cesu and the additional revenue generated over and above the guaranteed level, due to loss reduction measures will be shared between Cesu and the franchise in the ratio of 40:60 in first year and 50:50 in the remaining four years, the affidavit said.