18 firms show interest in Chandigarh power distribution

Tribune News Service

Chandigarh, January 22

At least 18 firms have so far evinced interest in privatisation of the UT Electricity Department.

UT Adviser Manoj Parida said the Request for Proposal had so far been issued to 18 intended bidders, including Torrent Power Limited, Adani Transmission Limited, Tata Power Company Limited, GMR Generation Asset Limited, India Power Corporation Limited, DNH Power Distribution Corporation Limited, NTPC Electricity Supply Limited (NESCL), Sterlite Power and CESC Limited.

Request for Proposal

UT Adviser Manoj Parida says the Request for Proposal has so far been issued to 18 intended bidders, including

• Torrent Power Limited
• Adani Transmission Limited
• Tata Power Company Limited
• GMR Generation Asset Limited
• India Power Corporation Ltd
• DNH Power Distribution Corporation Limited
• NTPC Electricity Supply Limited
• Sterlite Power
• CESC Limited

More firms were expected to take part in the electricity distribution in the UT, he said, after presiding over a pre-bid meeting with representatives of the companies. The last date to submit the tender is February 8 and the bids are likely to be opened the same day.

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

On January 12, the Supreme Court had stayed the order of the Punjab and Haryana High Court. On January 14, the UT Administration resumed the sale of tender for the privatisation process.

On a petition filed by the UT Powermen Union, a Division Bench of the High Court had, on December 1, 2020, stayed the tendering process regarding privatisation of the Electricity Department of the UT Administration.

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 of the wing 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. It was 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.