The Uttar Pradesh Power Corporation Ltd (UPPCL) has entered into an agreement with Torrent Power for power distribution in Kanpur and Agra. As per the agreement, Torrent will take over distribution system in Kanpur and Agra by 15 August 2009. Torrent is expected to invest around Rs 500 crore in distribution system in Kanpur.

The above agreement is a part of the UPPCL plans to appoint franchisees in seven cities, where line losses are high and revenue recovery is low, Those cities are Varanasi, Allahabad, Aligarh, Bareilly, Gorakhpur, Moradabad and Meerut.

As per the UPPCL officials, the present line loss in Kanpur and Agra is 47 per cent and 42 per cent respectively. As per the agreement, Torrent will ensure revenue realisation at the rate of 1.96 per cent and would reduce line losses to 15 per cent in seven years. The company will invest around Rs 200 crore in Agra.

Meanwhile, the UPPCL employees have announced launching of agitation against privatization of power distribution system in two cities.

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