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Power privatisation put on fast track in Chandigarh
After SC clears the decks, Chandigarh admn asks power ministry to expedite decision on bid evaluation committee’s report
The Chandigarh administration has put the power privatisation process on the fast track. After finalising technical bids, it has now sought the nod of the Union ministry of power for proceeding ahead with the process.
UT adviser Dharam Pal has written a letter to the ministry of power on the issue. In the letter, he has stated that since the Supreme Court has stayed the stay order of the Punjab and Haryana high court on the power privatisation process, the ministry should now take a decision on the report of the bid evaluation committee.
Pal said that on his recent visit to Delhi, Pal said he also met the secretary, power, and requested him to take further action on the bidding process. Now, the consultant appointed by the ministry will go through the report of the bid evaluation committee and give its final recommendations.
“On the basis of the recommendations of the consultant, we will open the financial bids and a final decision will be taken,” said Pal. The nod from the Centre is expected within a week.
The bid evaluation committee of the administration has analysed and prepared a final report on the strength and weaknesses of different bids. “After technical bids, financial bids will be opened. After the approval of the UT’s report on financial bids, the final approval of the Union cabinet will be taken, and thereafter the department will be privatized,” said a senior UT official dealing with the privatisation process.
Seven firms in the fray
Seven companies are in the fray to take over the UT electricity department. They are Sterlite Power, ReNew Wing Energy, NTPC Electric Supply Company Limited, Adani Transmission Limited, Tata Power, Torrent Power and Eminent Electricity Power Company.
The high court on May 28 had stayed the administration’s move to privatise the power department, but the order was stayed by the Supreme Court on June 28, clearing the decks once again.
The HC order was passed on a fresh plea from the UT Powermen Union, which had approached court pleading that opening and finalising of the tender bids be stopped. It was argued that the administration is not justified in hurrying through the process amid the pandemic.
Earlier, on December 1, too, the HC had slammed brakes on the privatisation process. However, the UT had approached the Supreme Court, which stayed the HC order and remanded back the case to it.
The decision to privatise the department was taken on May 12, 2020, after directions from the Centre. The centre has been pushing for privatisation of electricity departments in all the union territories. The administration had assured the Centre to complete the process by the year end.
The move to privatise the profit-making department is being opposed by both the employee union and a number of resident welfare associations. Even several political leaders have raised objections to the decision. Meanwhile, the administration has allayed the fears of hike in charges after the department is taken over by a private company, stating that only the Joint Electricity Regulatory Commission can decide the tariff.
