Supreme Court paves the way for privatisation of Chandigarh Power Dept

Tribune News Service

Chandigarh, June 28

The Supreme Court today cleared the decks for the privatisation of the UT Electricity Department as it stayed the order of the Punjab and Haryana High Court wherein the privatisation process was put on hold.

As of now, there is no stay on the privatisation of the Electricity Department, said a legal expert.

The High Court had on May 28 stayed the process of privatisation of the department. The UT Administration had filed a petition in the Supreme Court against the order.

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

On a petition filed by the UT Powermen Union, the High Court had, on December 1, 2020, stayed the tendering process regarding the 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.

However, On January 12, the Supreme Court had stayed the order of the High Court 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.

Six companies — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power and Torrent Power — had submitted their bids for the privatisation of the Electricity Department.

As the Supreme Court stayed the High Court order, the UT Administration could resume the process and open the financial bids to select the company take over the department.