Chandigarh fast-tracks process for Power Dept privatisation

Dushyant Singh Pundir

Tribune News Service

Chandigarh, January 14

After the Supreme Court stayed the order of the Punjab and Haryana High Court, the UT Administration has fast-tracked the process of privatisation of the Electricity Department. The UT Administration today resumed the sale of tender for the privatisation of the department.

The Administration has fixed February 8 as the last date to submit the tender and the bids could be opened the same day. The firm for the privatisation of the department could be selected the same day, said a senior official.

The UT Engineering Department had invited bids for the privatisation of the department on November 9. As many as 17 intended bidders, including Tata Power Company Limited, GMR Generation Asset Limited and Adani Transmission Limited, were issued request for proposal (RFP) to take part in the privatisation process of the department.

The Centre had decided to privatise the electricity distribution in the UT to provide better service to consumers and the process was to be completed by January 31.

On January 12, the Supreme Court had stayed the order of the Punjab and Haryana High Court, wherein the tendering process regarding the privatisation of the Electricity Department of the UT Engineering Department was stayed.

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 the privatisation of the UT 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 for the 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.