Chandigarh puts privatisation of Power Department on hold

Dushyant Singh Pundir

Tribune News Service

Chandigarh, February 19

Pleas of Electricity Department employees may have fallen on deaf ears, but their prayers have been answered. After the decision of the Centre to frame a uniform policy for the privatisation of the Electricity Department of all union territories, the UT Administration has put the department privatisation process on hold.

The privatisation process of the Electricity Department has been put on hold till the Centre frames a new policy regarding the formation of a company and the process to be adopted for the transfer of shares. — Manoj Parida, UT Adviser

“The privatisation process of the Electricity Department has been put on hold till the Centre frames a new policy regarding the formation of a company and the process to be adopted for the transfer of shares,” said UT Adviser Manoj Parida.

On November 9, 2020, the UT Engineering Department had invited bids for the privatisation of the Electricity Department.

On a petition filed by the UT Powermen Union, a Division Bench of the Punjab and Haryana High Court had on December 1, 2020, stayed the tendering process regarding the privatisation of the Electricity Department.

The petitioner had contended that they were aggrieved by the decision to privatise the electricity wing by selling 100 per cent stake of the government in the absence of any provision under Section 131 of the Electricity Act, 2003.

The Bench was also told that the process of privatisation of the wing could not be initiated at all, especially when it was running in profits. The sale of 100 per cent stake was unjust and illegal as the wing was revenue surplus for the past three years. It was economically efficient, having transmission and distribution losses less than the target of 15 per cent fixed by the Ministry of Power.

However, On January 12, the Supreme Court had stayed the order of the High Court and on January 14, the UT Administration resumed the sale of tender for the privatisation process.

As many as 20 intended bidders purchased the tenders, but only six companies — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power and Torrent Power — had submitted their bids for the privatisation of the department.

However, the bids were yet to be opened to select the firm to take over the department.

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