E-Paper
Chandigarh admn puts power privatisation on hold
After rushing into power privatisation, the Chandigarh administration has now slammed brakes on the process to get more clarity on norms for the bidding process
After rushing into power privatisation, the Chandigarh administration has now slammed brakes on the process to get more clarity on norms for the bidding process.
The process has been put on hold, for now, said UT adviser Manoj Parida, adding that the administration would wait for the Centre’s final approval regarding the “company formation and share transfer process to be adopted”.
The central government has insisted on a uniform bidding process to be followed in all the Union Territories where power privatisation process has already begun. Currently, the administrations of Chandigarh; Andaman and Nicobar; and Dadra and Nagar Haveli and Daman and Diu are following different criterion.
The decision comes at a time when the administration was in the final stages of handing over the electricity department to a private player. It had set February end as the deadline to complete the tendering process.
The administration had first invited bids for privatisation on November 9, 2020. Of the 20 companies that bought the request for proposal, six — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power and Torrent Power — had submitted their bid documents earlier this month. After scrutiny, the administration was to announce the date for opening of bids and finalisation of the company.
The hiccups so far
The decision to privatise the department was taken on May 12, 2020, after directions from the Centre. An empowered committee was constituted to oversee and implement the process. The administration had assured the Centre that the process would be completed by the end of 2020.
But, the first setback came on December 1, when the Punjab and Haryana high court stayed the process on the plea of UT Powermen Union.
After nudged by the Centre, the administration approached the Supreme Court on January 12, which stayed the high court order. A day after the SC relief, the administration immediately invited bids from interested firms.
The privatisation move has been opposed by employees, who have questioned the move to hand over a profit-making and well-running department to a private player. Resident welfare associations have also criticised the move, fearing hike in power prices.
In the recently held administrator’s advisory council meeting, too, former Member of Parliaments Pawan Kumar Bansal and Harmohan Dhawan had condemned the move.
