The process of privatization of power distribution in the Union Territory of Chandigarh has moved forward with the UT administration providing detailed replies to queries raised by the Ministry of Home Affairs, according to a reliable media report.
The report states that the Chandigarh UT administration, after receiving approval from the Punjab Governor and UT Administrator, has submitted detailed replies to all the queries raised by the Ministry of Home Affairs (MHA). These queries related to process of privatization, details of assets to be shifted to the incumbent private operator, details on liabilities of existing employees, etc.
MHA sought some clarifications to the cabinet note sent by the Chandigarh UT Administration to MHA, regarding the selection of a private entity as preferred bidder to take over power distribution in Chandigarh.
The story so far:
- 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 floats 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.
- 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) submits its bid, taking the total number of bidders in the fray to seven.
- August 4, 2021: EWEDC opens price bids submitted by the seven aspirants.
- August 5, 2021: CESC announces that its wholly-owned subsidiary, Eminent Electricity Distribution Ltd has emerged as the highest bidder in the privatization process of power distribution in the UT of Chandigarh. Eminent quotes Rs.871 crore, getting the better of six other contenders whose quotes varied from Rs.606 crore to as low as Rs.201 crore. Around 17 entities had purchased the request for proposal (RfP) documents.
- August 5, 2021: Chandigarh UT Administration says that it will submit a cabinet note about Eminent’s selection to the Ministry of Home Affairs in 2-3 months. [This cabinet note was eventually submitted to which MHA has sought clarification/further information, as discussed in this story.]
Also read: Chandigarh Power Distribution Privatization: Bids To Open On March 22
Featured photograph (source:egis-india.com) gives an aerial view of Chanidgarh’s Sector 43 and has been used for representation purpose only.
