The Times of India              01.11.2013 

Kanpur Municipal Corporation demands Rs 60 crore as rent from Kesco

KANPUR: Kanpur Municipal Corporation has demanded Rs 60.12 crore from Kesco as rent of the land used for sub stations and transformers in the city. Shocked Kesco officials have forwarded the matter to principal secretary, power, and ordered officials to collect details of street lights installed by the municipal corporation to prepare a counter claim.

Sources said that in a letter sent to managing director, Kesco, the municipal corporation has stated that as per the by-laws cleared on march 4, 2006, the corporation had the right to charge rent for its land used for power substations and transformers.

As per the by-laws, the corporation demanded Rs 60.12 crore as annual rent. The municipal commissioner has asked to the managing director to deposit the rent and raise objection within 15 days otherwise, it would be deemed that Kesco had nothing to say in the matter.

Corporation also attached a list of power substations and transformers installed on its land and asked Kesco to inform as to when substations and transformers were installed.

Kesco managing director SN Bajpai said that municipal corporation had sent bill first time and the same had been sent to principal secretary, power, for necessary directions. It would be quite difficult for Kesco to pay such a huge amount as rent, he added.

Since municipal corporation was installing lights in various parts of city therefore officers have been asked to collect details and sent the bill to the corporation.