Privatisation: Kolkata firm set to take over Chandigarh Electricity Dept

Eminent Electricity quotes five times the reserve price

Privatisation: Kolkata firm set to take over Chandigarh Electricity Dept

Dushyant Singh Pundir

Tribune News Service

Chandigarh, August 4

Kolkata-based Eminent Electricity Distribution Ltd has emerged as the highest bidder to take over the UT Electricity Department, quoting five times the reserve price of nearly Rs174 crore.

A subsidiary of CESC Limited, a flagship company of RP-Sanjiv Goenka Group, Eminent Electricity Distribution Ltd made the highest bid of Rs871 crore, whereas Adani Transmission Ltd quoted Rs471 crore. Among the seven firms in the fray for power distribution in the city, Sterlite Power submitted the lowest bid of Rs201 crore whereas the second highest bid of Rs606 crore was made by Torrent Power.

The report on the financial bids will be sent to UT Administrator VP Singh Badnore for approval. After getting the Administrator’s nod, the report will be sent to the Ministry of Power for final selection of the firm to take over the electricity distribution in the UT.

On November 9 last year, the UT Engineering Department had invited bids for privatisation of the electricity department.

Seven companies — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power, Torrent Power and Eminent Electricity Power Ltd — had submitted their bids.

On a petition filed by the UT Powermen Union, the Punjab and Haryana High Court had on December 1 last year stayed the tendering process regarding privatisation of the electricity department.

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

The High Court was also told that the process of privatisation of the department 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 department 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 High Court order and on January 14, the UT Administration resumed the sale of tender for the privatisation process.

After the Administration restarted the process, the union again filed a petition in the High Court which again stayed the process on May 28, but the order was stayed by the Supreme Court on June 28, clearing the decks once again for privatisation of the department.

About RP-Sanjiv goenka group

  • The RP-Sanjiv Goenka Group, which traces its history back to 1820, has interests across diverse business sectors — power and natural resources, carbon black, IT and education, infrastructure, retail, media, entertainment and sports — and has assets of Rs40,355 crore.
  • CESC Limited, a flagship company of RP-Sanjiv Goenka Group, is a conglomerate of several power companies, including CESC Green Power Ltd, Bikaner Electricity Services Ltd, Bikaner Electricity Supply Ltd, Crescent Power Ltd, Haldia Electric Power Company, Jharkhand Electricity Company Ltd, Kota Electricity Distribution Ltd, Malegoan Power Supply Ltd, Noida Power Company Ltd, Ranch Power Distribution Lid and Surya Vidyut Ltd.

2.50 lakh consumers in the city

At present, there are 2.50 lakh power consumers in the city. Nearly 2.14 lakh are domestic consumers and account for more than 87 per cent of the total consumers. The remaining 23 per cent are commercial, small power, medium supply, large supply, bulk supply, public lighting, agriculture power and temporary supply consumers.

How much firms quoted

  • Company                                Bid
  • Eminent Electricity Distribution Ltd Rs871 cr
  • Torrent Power Rs606 cr
  • NTPC Rs563 cr
  • ReNew Wing Energy Rs551.5 cr
  • Adani Transmission Ltd Rs471 cr
  • Tata Power Company Rs426 cr
  • Sterlite Power Rs201 cr

Tribune Shorts

Cities

View All