The five discoms are responsible for distribution and supply of electricity in Uttar Pradesh and are headquartered in Meerut, Agra, Lucknow, Varanasi and Kanpur.

The Reliance 'ownership issue'

The five discoms together cater to about 8.5 million consumers over 240,000 sq. kms with a peak demand of about 6500 MW.

The aggregate annual revenue of the discoms is about Rs 7500 crore (Rs 75 billion). Uttar Pradesh has more than three times the number of electricity consumers than Delhi and its demand and revenues are almost double than that of Delhi.

The process of divestment shall take place in two stages. The first stage is currently underway for pre-qualification of parties. The entire transaction is scheduled to be completed within this fiscal year.

A number of domestic and international players have expressed their interest in participating in the bidding process.

The current divestment opportunity is the first of its kind after enactment of the Electricity Act, 2003 and is in line with the reform objectives of the UP Power Policy, 2003.

The divestment is a part of an extensive reform program undertaken by the state government in the power sector with the support of the World Bank.

Reliance Energy, the largest integrated private sector power utility in the country with electricity distribution in Mumbai, Delhi and Orissa is evaluating this opportunity.

The investment decision would however, take into account the transaction structure and support from various stakeholders.