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Tripura cancels contract with FEDCO over poor power services

BNE News Desk , September 16, 2024
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Agartala: The Tripura Government has cancelled the contract of Feedback Energy Distribution Company Limited (FEDCO), a private organization, for failing to provide proper electricity service to consumers in the state.

Speaking with Business Northeast Tripura Power Minister Ratan Lal Nath informed that the contract with FEDCO was terminated due to the company's inability to deliver the expected level of service. The private company had signed an agreement with the state government on July 1, 2020, committing to provide high-quality electricity services to consumers.

“The agreement was for 10 years, but it was later found that FEDCO did not fulfill the contract’s terms properly. The company failed to deliver the customer service that it was supposed to provide as a franchisee of the FIDCO division. Additionally, they were not performing regular electricity repair work properly. As a result, numerous complaints from customers regarding their services were raised, and an investigation confirmed these issues. The state government cannot remain silent on this matter, as it is responsible to the people. Therefore, on March 4, FEDCO was given a notice asking them to improve electricity services,” said Minister Nath.
The minister explained that despite the notice, the electricity service not only failed to improve but worsened. Consequently, the government had no option but to cancel the contract with FEDCO.

He informed that there are 1,44,920 customers in the ten power subdivisions of Sabroom, Satchand of South District, Ambassa, Gandachara, Manu, Chawmanu under Dhalai District, Mohanpur, Hejamara, Lefunga, and Bamutia under West Tripura District which look after FEDCO.

“Henceforth, the Tripura State Electricity Corporation Limited will be responsible for providing electricity services to these subdivisions. Additionally, all 370 employees under FEDCO will be engaged in power-related work. In other words, none of them will be laid off,” the minister told this publication.

The state has witness massive protest in recent past over the poor performance and work of FEDCO.
Sources inside the Tripura Power Department revealed that many contract linemen and meter readers had face problems as FEDCO has reportedly failed to provide the pending due.

On May 07, in Sabroom which is located in Tripura South District witnessed massive protest after they were facing power issues for six days which led to water crisis and many more.

Another protest took place on May 25, after a youth died in the Sabroom after he came in connect with a high tension live wire. Following the death the Power Minister Nath had to rush to the spot and given a stern warning to the company.