Bangalore: The power sector reforms process in Karnataka has taken a major step forward with the state-run Karnataka Power Transmission Corporation Limited (KPTCL) divested of the distribution business, which would now be handled by four independent companies.

The four separate and independent companies are Bangalore Electric Supply Company (BESCOM), Mangalore Electric Supply Company (MESCOM), Hubli Electric Supply Company (HESCOM) and Gulbarga Electric Supply Company.

The Karnataka Electricity Regulatory Commission has issued three-month conditional licences to them, after which they would have to apply for fresh ones. KPTCL would now look after only the transmission business and is being termed as "wholesalers supplying in bulk" to these four companies.

Government sources said the carving out of four companies is aimed at giving a focussed attention to distribution, enhancing customer satisfaction, reducing costs and losses and improving revenue.

Meanwhile, BESCOM, which started functioning from June 1, would be responsible for power distribution in six districts of Bangalore urban, Bangalore rural, Kolar, Tumkur, Chitradurga and Davangere.

BESCOM's managing director, P B Ramamurthy, said in those districts, the revenue demand was of the order of Rs 2,276 crore in 2001-02 and the collection made was Rs 2,089 crore.

Ramamurthy told reporters on June 6 that as per the "second transfer scheme", BESCOM now has total assets of Rs 1,171 crore, and about 15,000 KPTCL employees have moved over to the new distribution company.

PTI