The Chandigarh Smart Grid project that will cover the entire city (except Sub-division 5) is likely to be scrapped, it is reliably learnt.
The development follows the privatization of power distribution in the licence area. The privatization process is now being revived after it was delayed following the spike in COVID-19 cases.
According to reliable media reports, technical bids of seven qualified entities are being scrutinized and financial bids are likely to be opened by mid-June 2021.
The seven entities in question are: Sterlite Power; ReNew Wing Energy; NTPC Electricity Supply Company; Adani Transmission; Tata Power; Torrent Power; and, Eminent Electricity Distribution (CESC Group)
Smart Grid project
The Smart Grid project, which is now likely to be scrapped, was to come up under the National Smart Grid Mission (NSGM). It was to cover the entire city except Sub-division 5 (SD-5). Incidentally, for SD-5, there was a separate NSGM Smart Grid project catering to nearly 30,000 consumers.
The Chandigarh City (excluding SD-5) Smart Grid project was to cater to 1.84 lakh consumers. It was to offer functionalities like automated metering infrastructure (AMI), SCADA, DTMU (distribution transformer monitoring unit) and ERP (enterprise resource planning).
The Rs.241.49-crore project was to come up with Central government support of Rs.72.45 crore. Till end-April 2021, a total of Rs.7.25 crore was released for the project.
So far, only preliminary work on the project had begun. An important milestone crossed was the tendering for appointment of the project design and management agency. While tendering was undertaken, tender evaluation was put on hold by the Chandigarh Administration, owing to the imminent privatization.
Privatization: Chronology of events
In May 2020, the Union power ministry decided to completely privatize power distribution in all the Union territories. The process started off with Chandigarh.
In November 2020, EWEDC floated invitation for bids from potential entities to acquire complete control on Chandigarh’s power distribution. EWEDC (The Electricity Wing of Engineering Department of UT Administration of Chandigarh) 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.
Shortly thereafter, in December 2020, the Punjab & Haryana High Court issued 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. The main reason being that power distribution in Chandigarh was not a “loss making” activity, which is a general precursor for privatization.
The Supreme Court, in January 2021, vacated the stay, allowing the privatization process to continue.
The bidding process closed on February 8, 2021. Out of the 20-odd entities that purchased the documents, six entities submit their technical and financial bids. EWEDC extended the bid closing date to March 18. During this extension, one more entity (Eminent Electricity Distribution) submits its bid, taking the total number of bidders in the fray to seven.
(Featured photograph, sourced from liveatpc.com, is for illustration only)
