Won't issue letter of intent to pvt firm: Chandigarh to powermen

Tribune News Service

Saurabh Malik

Chandigarh, March 11

Less than a month after the city plunged into darkness following a strike by powermen over the privatisation of electricity, the UT Administration has assured the UT Powermen Union that the letter of intent (LoI) will not be issued to a private agency. The assurance will remain in force till the matter is pending before the Punjab and Haryana High Court.

Info given at hearing

• The assurance will remain in force till the matter is pending before the Punjab and Haryana High Court.
• Information to this effect came during the hearing of a petition filed before the High Court against the privatisation move.

Information to this effect came during the hearing of a petition filed before the High Court against the privatisation move. As the case against the Union of India and other respondents came up for resumed hearing, the Bench of Chief Justice Ravi Shanker Jha and Justice Arun Palli asserted: “The counsel for the parties are ad idem (in agreement) that at a meeting held between the petitioner (UT Powermen Union, Chandigarh) and the UT Administration, the Administration had undertaken/assured the union that no LoI shall be issued to the private agency till the matter is pending before this court”.

The Bench also fixed the case for further hearing on March 28 after the senior panel counsel for the respondent (Union of India) and the senior standing counsel for the respondent (UT) prayed for time to seek further instructions in the matter.

The Bench, on a previous date of hearing, was told on behalf of the Powermen Union 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.

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.

“The entire action of the respondents in privatising the electricity wing of the engineering department, UT, and the entire process being carried out pursuant thereto, including an office memo, dated June 10, the decision taken during the meeting of the privatisation of the Power Department/utilities held on May 12 as far as the UT is concerned and the notice inviting bids and the documents prepared in relation thereto is not only illegal, unjust, arbitrary, unconstitutional, but also in violation of the provisions and the principles of law...,” it was added. The UT, on the other hand, had sought directions to dismiss the petition. Among other things, it was stated that the petition was still premature and the process would take time to finalise.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

#chandigarh power privatisation