Chandigarh Administration already on job to privatise power department, consultant hired

Tribune News Service

Chandigarh, May 16

Union Finance Minister Nirmala Sitharaman today announced privatisation of power distribution companies (discoms) in the union territories. However, the Chandigarh Administration had already started working in this regard.

UT Finance Secretary AK Sinha said the Administration had recently hired a consultant, Power Finance Corporation Limited, a Government of India undertaking, for preparing a comprehensive proposal for corporatisation of the Electricity Department.

The Joint Electricity Regulatory Commission (JERC) had already issued directions to the UT Administration for restructuring and reformation of the department, which is mandatory as per the Electricity Act, 2003.

On privatisation, the department will become an autonomous body registered under the Companies Act 1956, which will be controlled by managing director and directors.

To provide better services to the residents, the autonomous body will be divided into the State Transmission Utility (STU) and State Load Dispatch Centre (SLDC). The STU will be responsible for smooth transmission of power and the SLDC will be the main body to ensure integrated operation of the power system.

During a press conference in Delhi, Sitharaman stated that the move would address the sub-optimal performance of power discoms. It would lead to better service to consumers and improve operational and financial efficiency in distribution, she added.

Opposing the privatisation/corporatisation of the Electricity Department, Gopal Dutt Joshi, general secretary, UT Powermen Union, said it was the most profit-earning department of the UT and had never been in the red even as it does not generate power. He said the department was accredited as the best utility for its services in the country by the JERC and bagged the tag consistently for the past five years. Despite staff shortage, the department was serving the public with the best services, he added.

The line losses in the city were 9 per cent to 10 per cent, which was an example for other states, he said, adding that the Central Government had required that the line losses should be less than 12 per cent. The department had achieved the proficiency level of 99.99 per cent as per the target fixed by the JERC, he said. The power supply was metered to the tune of 95 per cent, he said.

He said engineers and employees of the department were in field to ensure uninterrupted power supply even during the curfew and lockdown.

2.5 lakh consumers in city

There are 2.5 lakh power consumers in the UT. Among them are 2.15 lakh domestic consumers, who account for over 87 per cent of the total power consumers, while the remaining are categorised as commercial, small, bulk, public lighting, agriculture and temporary supply consumers.