Won't issue LoI, Chandigarh reiterates before HC

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Chandigarh, March 29

More than a month after the city plunged into darkness following a strike by power men over the privatisation of their department, the UT Administration has reiterated that the letter of intent (LoI) will not be issued to a private agency.

As the case came up for a resumed hearing before the Bench of Chief Justice Ravi Shanker Jha and Justice Arun Palli, UT senior standing counsel Anil Mehta prayed for further time to seek instructions and, if necessary, to file an affidavit.

“The counsel appearing for the parties reiterate the statement that was made before this court on March 10 regarding non-issuance of LoI to the private agency till the matter is pending,” the Bench observed.

The Bench, on a previous date of hearing, was told on the petitioner- Powermen Union’s behalf that it was 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 electricity 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.

It also contended that the transfer scheme without calling for objections from all stakeholders could not be legally sustained and acted upon. As per Section 131(2) of the Act, the power could not be transferred to a totally private entity with no stake or control of the government. The petitioners were represented by senior advocate AK Chopra with counsel Akshit Chaudhary.

What petitioner says

The Bench, on a previous date of hearing, was told on the petitioner- Powermen Union’s behalf that it was 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.