The CESC (RP-Sanjiv Goenka) Group has formally acquired power distribution operations in the Union Territory of Chandigarh.
In recent stock exchange filings, CESC Ltd said that “Chandigarh Power Distribution Ltd” – an entity housing the power distribution activities in Chandigarh – has been taken over by Eminent Electricity Distribution Ltd, a wholly-owned subsidiary of CESC Ltd. Thus, Chandigarh Power Distribution Ltd (CPDL) becomes a step-down subsidiary of CESC Ltd.
The acquisition of Chandigarh Power Distribution Ltd was completed for a total consideration of around Rs.871 crore.
It may be noted that with effect from February 1, 2025, electricity-related functions along with assets, liabilities, interests, rights, functions, obligations, proceedings and personnel of the Electricity Wing of the Engineering Department, Chandigarh (EWEDC) were transferred to Chandigarh Power Distribution Ltd, an entity incorporated on April 23, 2022.
With this, the process privatization of power distribution activities in Chandigarh that began nearly five years ago is now complete, and CESC has emerged as the 100 per cent privately-owned power distribution licensee of the UT of Chandigarh.
Here is a chronology of events, compiled by T&D India
- May 2020: The Union power ministry decides to completely privatize power distribution in all the Union territories. The process starts off with Chandigarh.
- November 2020: EWEDC (The Electricity Wing of Engineering Department of UT Administration of Chandigarh) floats invitation for bids from potential entities to acquire complete control on Chandigarh’s power distribution. EWEDC is a deemed licensee under Section 14 of the Electricity Act 2003, and is carrying out the business of transmission, distribution and retail supply of electricity in Chandigarh.
- December 2020: The Punjab & Haryana High Court issues a stay on the Centre’s proposal to privatize power distribution in Chandigarh. This was done by admitting a plea submitted by UT Powermen Union, Chandigarh. The court felt that the privatization was “unjust and illegal” for several reasons.
- January 2021: Supreme Court vacates the stay, allowing the privatization process to continue.
- February 2021: Bids close for submission on February 8, 2021. Out of the 20-odd entities that purchased the documents, six entities submit their technical and financial bids.
- March 8, 2021: EWEDC extends bid closing date to March 18. One more entity (Eminent Electricity Distribution Ltd) submits its bid, taking the total number of bidders in the fray to seven.
- August 4, 2021: Eminent Electricity Distribution Ltd emerges as the highest bidder for acquiring 100 per cent stake in the proposed power distribution entity of Chandigarh.
- April 23, 2022: Chandigarh Power Distribution Ltd incorporated
- January 31, 2025: Eminent Electricity Distribution Ltd enters into a share purchase agreement (dated January 31, 2025) with the Administration of Union Territory of Chandigarh and Chandigarh Power Distribution Ltd (CPDL) for acquisition of 100 per cent shareholding of CPDL.
- February 1, 2025: This becomes the effective date of the “Chandigarh Electricity Reforms Transfer Scheme, 2025” since notified by Chandigarh Administration, Engineering Department for transfer of electricity functions together with the assets, liabilities, interests, rights, functions, obligations, proceedings and personnel of the Electricity Wing of the Engineering Department, Chandigarh (EWEDC) to CPDL.
