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Chandigarh extends power assets’ transfer deadline to Feb due to ‘extensive paperwork’
The administration had invited bids for privatisation on November 9, 2020, and the Kolkata-based RP-Sanjiv Goenka (RPSG) Group had emerged as the highest bidder at ₹871 crore. Following this, employees had moved court, stalling the handing over of assets
The UT administration has extended the deadline for transferring power assets to a Kolkata-based private company to February next year, from the initial December 31. This has been necessitated by the extensive documentation and paperwork involved in the process.
A senior UT official said, “We are hopeful of completing the transfer by the first week of February next year.”
The administration had invited bids for privatisation on November 9, 2020, and the Kolkata-based RP-Sanjiv Goenka (RPSG) Group had emerged as the highest bidder at ₹871 crore. Following this, employees had moved court, stalling the handing over of assets. On November 7, the Punjab and Haryana high court had dismissed the employees’ petition following which they moved the Supreme Court but here too, the court junked their plea, paving way for the privatisation process.
Since November 7, employees of the power department have been staging protests, with the Congress party joining in with a seven-day chain hunger strike on December 18.
Firm refutes allegations of price hike, job uncertainty
The private firm, in a press release, refuted allegations that employees’ jobs are at risk, electricity prices will rise, and that the administration has handed over a profitable department to private entities.
The firm clarified that the Electricity Act, 2003, along with conditions specified in the tender, ensures the protection of employees’ jobs and preserves their service conditions after transitioning to the privatised distribution company. It further stated that employees’ service terms could only be enhanced and there would be no reduction in benefits or rights post-privatisation. This includes safeguarding salaries, allowances, pensions, and other benefits such as gratuity, earned leave, and provident fund.
On department’s financial status, the firm revealed that the department had incurred losses of ₹157.04 crore in financial year (FY) 2021-22. Additionally, the Joint Electricity Regulatory Commission (JERC) has projected revenue shortfalls of ₹158.91 crore for FY 2023-24 and ₹198.71 crore for FY 2024-25, based on pre-revised tariffs. The department has repeatedly failed to meet its loss reduction targets, leading to penalties year after year.
The UT reiterated that even after privatisation, electricity rates will remain regulated by the JERC.
The firm added, “The privatisation of Chandigarh’s electricity sector is a necessary step to address financial challenges, enhance service efficiency, and ensure long-term sustainability. We urge residents to disregard misinformation and trust the facts provided by the UT administration. This initiative aims to establish a stronger and more reliable electricity distribution system for the benefit of all Chandigarh residents.”
