Power privatisation: No new firm shows interest

Dushyant Singh Pundir

Tribune News Service

Chandigarh, March 17

Despite extending the last date for the submission of the bids, no new company has evinced interest in the privatisation of the UT Electricity Department.

The UT Administration had recently extended the last date to submit bids till March 18 after making changes in the request for proposal (RFP) conditions in the tender documents.

A senior official said till date, no new company had come forward to take part in the privatisation process after certain conditions were incorporated in the bid documents.

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

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 by the last date on February 8.

However, 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.