UT set to transfer Power Dept liabilities to firm by month-end
The UT Administration is all set to transfer the liabilities of the UT Electricity Department to Kolkata-based Eminent Electricity Distribution Limited (EEDL), a subsidiary of the RP Sanjiv Goenka (RPSG) Group, by December 31.
To speed up the process, the administration has decided to appoint an actuarial valuer for assessing unfunded terminal liabilities as on proposed transferred date of December 31, of the department.
The administration issued a letter of intent (LoI) to EEDL on November 22.
The company was selected as the successful bidder. After the approval of the Cabinet, Chandigarh Power Distribution Limited (CPDL) was formed. To safeguard the interests of the employees, who are proposed to be transferred to the CPDL, the Chandigarh Electricity Employees’ Master Trust has been incorporated under the Indian Trust Act, 1882. The Trust will deal with all terminal liabilities of the transferred employees and an amount of Rs 263 crore will be transferred on this account by the company.
According to the Draft Transfer Scheme, which contains the provisions with regard to safeguarding the interests of the transferred employees, the terms and conditions of the services applicable to the personnel shall not in any way be less favourable than or inferior to those applicable to them immediately before the transfer date. All such personnel shall have continuity of services in all respects.
All benefits of service accrued, including their entitled government benefits during their service under the administration before transfer date, shall be fully recognised and protected and taken into account for all purposes. The transferred personnel shall not be posted outside Chandigarh by the company without their prior concurrence.
All procedures, in which terminal benefits are to be sanctioned and disbursed from the Trust, shall be determined by the Administration on the recommendation of the Board of Trustees. The Trust will manage and function till the terminal liabilities of the transferred employees are fully paid.
The Chandigarh Electricity Reforms Transfer Scheme has been formulated and the transfer of the functions from the CPDL shall be done through an Electricity Reforms Transfer Scheme, wherein specific provisions have been incorporated to safeguard the interests of the employees.
The administration shall constitute a committee from transfer date to receive options/representations/suggestions on the transfer of personnel to the company and it will make a recommendation to the UT with regard to their grievances in matters of transfer.
Meanwhile, the UT Powermen Union has threatened boycott of work for an indefinite period. They would make an announcement in this regard during a protest rally to be held on December 6 if the department was handed over to the private company without protecting the service conditions of the employees.
The administration had invited bids on November 9, 2020. Seven companies — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power, Torrent Power and EEDL — had submitted their proposals. On August 5, 2021, the EEDL was declared the highest bidder. The company had quoted a bid of approximately Rs 871 crore, which is significantly higher than the reserve price of Rs 175 crore.
