Privatization of electricity: company should bear the expenses, says Lakshadweep administrator

KOCHI: Lakshadweep administrator Praful Khoda Patel said that all the expenses, including diesel, should be borne by the contracting company in the project to privatize power generation and distribution on the island. The company will use diesel generators to generate electricity on the island. It will cost Rs 28 per unit. The plan is to complete it in two years and convert it completely to solar energy.

The directive was issued by the administrator during a meeting with the transaction advisor company, which conducts tenders for the central government. The adviser said the company would take over the project only if the government bears the cost of diesel and the salaries of government employees. The adviser also suggested that the government should take over the officers above the age of 50 while the rest of the employees would be taken over by the company. This was not approved by the administrator.

Officials of the Lakshadweep electricity department will discuss the details of the project with the transaction advisory officers in Daman. The team will go to Daman tomorrow. The discussion will take place in the presence of the administrator after he arrives in Daman. The issue of the diesel expenses may be discussed during this meeting.

Employees of the Lakshadweep electricity department and the people of Lakshadweep are likely to strongly oppose the project.

Meanwhile, the administrator has begun moves to build a new airport in Kavaratti, the capital of Lakshadweep. The airport is said to be built about two kilometers south of the naval base.