HT Chandigarh Our Take: Power privatisation should not come as a shock

The argument against privatisation is that the current system is economically efficient with transmission and distribution losses less than the target of 15% fixed by the power ministry

The Punjab and Haryana high court early this week stayed the Chandigarh administration’s move to privatise the power department while acting on the plea of the UT Powermen Union, a worker’s collective that challenged the move.

The Chandigarh administration is going for 100% privatisation of distribution and supply functions of the electricity wing of the UT’s engineering department. (Getty Images)

The administration is going for 100% privatisation of distribution and supply functions of the electricity wing of the UT’s engineering department. It took the decision on May 12 after directions from the Centre. An empowered committee has been constituted to oversee and implement the process. The administration has assured the Centre that the process will be completed by the end of this year.

As many as 17 firms, including Adani Transmission Limited, Tata Power Company Limited, GMR Generation Asset Limited, NTPC Electricity Supply Limited and Sterlite Power, have expressed interest after the administration on November 9 invited bids for privatisation, which primarily involves the distribution of electricity supply.

Authorities say private ownership will improve the efficiency of the power distribution system in the city which has a relatively low demand of around 400MW.

The argument against privatisation, however, is that the current system is economically efficient with transmission and distribution losses less than the target of 15% fixed by the power ministry.

Consumers also fear that private players taking over would mean hefty electricity bills.

The power department at present serves 2.3 lakh consumers in the city.

As of now, the administration will be filing a review petition against the high court order. “We will first file a review in the HC, failing which we will move the Supreme Court,” UT adviser Manoj Parida has said.

Should UT power department be privatised?

Is privatisation necessary, especially when the power department has surplus revenues? Send your responses with a photograph to Chandigarh@hindustantimes.com by December 11