Chandigarh power supply goes into private hands

Finally, the UT Administration has handed over the Electricity Department to Eminent Electricity Distribution Limited (EEDL), a subsidiary of the Kolkata-based RP-Sanjiv Goenka (RPSG) Group.

A share-purchase agreement was today executed between the Administration, EEDL and Chandigarh Power Distribution Limited (CPDL), marking a major step in modernising the city’s power supply.

The RPSG Group, through its subsidiary EEDL, has officially taken over the power distribution and retail supply business, following approvals from the Punjab and Haryana High Court (November 2024) and the Supreme Court (December 2024).

Under the privatisation plan, the entire power distribution and retail supply function have been transferred to the CPDL.

This transition will significantly enhance the power services for over 2.35 lakh consumers in the city. This initiative aligns with the Aatmanirbhar Bharat vision, ensuring improved reliability, efficiency and sustainability in the local power sector. The EEDL has invested Rs 871 crore, far exceeding the reserve price, while ensuring the protection of employee service conditions and pensions. Significant investments in smart grids and distribution networks will ensure 24x7 reliable power supply.

In a statement, the RPSG Group has also announced the acquisition of the power distribution and retail supply business of the UT Electricity Department effective today.

The assets, liabilities, power purchase contracts and personnel from the previous entity have been transferred to the CPDL as per the transfer scheme notified by the UT Administration, with guarantees that employee service terms remain unchanged, including the establishment of a Pension Trust for their benefit. President (power distribution) of RPSG Group PR Kumar stated that the CPDL would establish an advanced consumer grievance redressal system, including a dedicated helpline and online complaint registration, to ensure prompt resolution of consumer issues.

Significant investments will be made in modernising the electrical infrastructure to provide 24x7, safe, and reliable power. This will enhance the quality of service, he added.

On green energy initiatives, he said the CPDL was committed to increasing the green energy share in its supply, contributing to Chandigarh’s sustainability and environmental goals.

On tariff regulation, Kumar said the Joint Electricity Regulatory Commission (JERC) will continue to oversee the determination of consumer tariffs, ensuring transparency and fairness in pricing.

He said employee terms of employment have been fully protected, with no less favourable conditions than before the transfer. Employees will also benefit from exposure to state-of-the-art technology and comprehensive training programs to enhance their skills.

“We are excited to serve the people of Chandigarh and bring the high standards of reliability and service that our group is known for. We look forward to improving customer experience, infrastructure, and service delivery. With the addition of Chandigarh to our portfolio, we are poised to strengthen our leadership in the power distribution sector,” Kumar stated.

Meanwhile, the UT Powermen Union, which has been continuously protesting against privatisation of the department, has decided to withdraw its decision to boycott work in view of tripartite agreement reached between the union, CPDL, and Chandigarh Administration under the Chairmanship of UT Deputy Commissioner Nishant Kumar Yadav.