Chandigarh set to privatise Power Department by December-end

Dushyant Singh Pundir

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Tribune News Service

Chandigarh, August 17

The UT Administration has set a target to complete the process of privatisation of the Electricity Department by the end of this year.

The Power Finance Corporation (PFC), a Government of India undertaking, had recently appointed Deloitte, a private firm, as a consultant to prepare a comprehensive report on unbundling of the department.

In May, Union Finance Minister Nirmala Sitharaman had announced the privatisation of power distribution companies (discoms) in the union territories, but the Chandigarh Administration was already on the job.

UT Adviser Manoj Parida said efforts were on to complete the process of privatisation of the Electricity Department by the end of December this year.

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, which will be divided into the State Transmission Utility (STU) and the 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.

Opposing the privatisation of the 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. Despite staff shortage, the department was serving the public with the best services, he added.

The line losses were 9 per cent to 10 per cent, which was an example for other states, he said, adding that the Central Government had mandated that the line losses should be less than 12 per cent.

However, the Administration had clarified that employees would not be retrenched and all their benefits would be safeguarded on privatisation of the department. The Administration also cleared the doubts on increase in tariff due to privatisation and stated that the tariff would continue to be governed by the defined criteria as was being done at present.

Department will become autonomous body

On privatisation, the department will become an autonomous body, which will be divided into the State Transmission Utility (STU) and the 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.

2.5 lakh consumers in city

There are 2.5 lakh power consumers in the UT. Among them, 2.15 lakh are 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.