Chandigarh Administration speeds up power privatisation process

Dushyant Singh Pundir

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Tribune News Service

Chandigarh, May 25

With a decline in the number of Covid-19 cases, the UT Administration has stepped up the process for privatisation of the Electricity Department.

The Administration had to put the process on hold due to a sharp rise in the coronavirus cases in the city even after submitting the progress report to the Centre nearly two months ago.

The Administration had on March 23 opened the technical bids submitted by seven firms for the privatisation of the department.

UT Adviser Manoj Parida said the technical bids were being scrutinised and the financial bids were likely to be opened within 10 days.

The technical bids were being examined by an evaluation committee and the financial bids would be opened after scrutinising all technical bids.

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

As many as 20 intended bidders were issued the Request for Proposal (RFP), but only seven companies — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power, Torrent Power and Eminent Electricity Power Company — had submitted their bids by the last date on March 18.

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 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.

The UT Administration has proposed to give licence to a distribution company for 25 years under the privatisation of the department.

However, after opening of the financial bids, the name of the successful bidder would be approved by the Union Cabinet to take over the power transmission of the city, said an official.