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Saturday, December 6, 2025

Government Cancels Contract with FEDCO Over Poor Electricity Services

Date:

By TC News Desk

Agartala, 13th September 2024:   The Tripura government has terminated its contract with FEDCO, a private company responsible for electricity services, due to its failure to meet consumer expectations. Power Minister Ratan Lal Nath announced the decision, citing multiple customer complaints and the company’s inability to fulfill its contractual obligations.

FEDCO had entered into a 10-year agreement with the state on July 1, 2020, promising to deliver reliable electricity services. However, the company’s performance as a franchisee of the FIDCO division fell short. “FEDCO did not uphold the terms of the contract, and complaints poured in regarding inadequate customer service and failure to conduct routine maintenance and repairs,” said Minister Nath. An investigation confirmed these shortcomings, prompting the government to act in the public interest.

On March 4, the government issued a formal notice to FEDCO, urging the company to address the issues and improve its services. Despite this warning, the situation worsened, leaving the state with no choice but to cancel the contract.

FEDCO was responsible for providing electricity to 1,44,920 consumers across ten subdivisions: Sabroom, Satchand (South Tripura), Ambassa, Gandachara, Manu, Chawmanu (Dhalai), Mohanpur, Hejamara, Lefunga, and Bamutia (West Tripura). With the cancellation of the contract, Tripura State Electricity Corporation Limited (TSECL) will take over operations in these areas. Minister Nath assured that none of FEDCO’s 370 employees would lose their jobs and would continue working on power-related tasks.

Additionally, the minister highlighted the recent flood damage to the power infrastructure. He revealed that 3,599 kilometers of transmission lines, 5,397 electric poles, 2,616 distribution transformers, and 5 power transformers were damaged. Moreover, 2,730 kilometers of PBC lines were affected by the disaster.

The government remains committed to improving the state’s electricity services while addressing the challenges posed by the flood damage.

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