Patna Electric Supply Undertaking (Pesu) has floated tenders to invite private players to bid for the distribution franchise in four towns of the state, including Patna.

Bihar State Power Holding Company (BSPHCL) has completed the process of technical bidding for Muzaffarpur, Gaya and Bhagalpur towns as well. It is expected to take up the financial bidding for the three towns.

The above move is part of the state government's strategy to privatise energy distribution network in the state.

Besides meter-reading, billing, collection, operation and maintenance, the selected bidder would be responsible for the distribution of electricity.

Last year, the BSPHCL (erstwhile Bihar State Electricity Board) had given the go ahead to Essar Power for Pesu transmission network but they refused. BSPHCL invited fresh request for proposal (RFP).

It had invited bids from eligible bidders to participate in the process for selecting distribution franchisee for Pesu area, Muzaffarpur, Bhagalpur and Gaya towns and their adjoining areas.

Reports suggest that Mumbai-based Essel Adi Smart Solutions has been declared the technically qualified bidder for Muzaffarpur, Bhagalpur and Gaya towns, along with Mumbai-based Spanco for Gaya and Kolkata-based SPML Infra Limited for Bhagalpur.