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Private firm set to take over Chandigarh power dept in first week of February
Once in charge, EEDL will handle electricity billing and manage all helplines; a detailed public notice will be released by the Chandigarh electricity department
Kolkata-based Eminent Electricity Distribution Limited (EEDL) deposited ₹871 crore with the UT administration on Wednesday, paving the way for the company to take full control of Chandigarh’s electricity department in the first week of February.
Once in charge, EEDL will handle electricity billing and manage all helplines. A detailed public notice will be released by the department.
The Joint Electricity Regulatory Commission (JERC) will continue to oversee and fix the tariff for the private sector operator, as being done for the government department.
The department’s privatisation has been vociferously opposed by employees, who have warned of boycotting work if their demands are not met before the handover. Among various demands, they have sought a comprehensive policy safeguarding their service conditions, and an agreement involving all stakeholders to prevent future conflicts and build trust.
The department has around 600 regular employees and 500 outsourced workers.
Apprehending that the power department employees may go on strike, the UT administration has already prepared a detailed contingency plan, requesting staff from Punjab and Haryana.
UT chief engineer-cum-special secretary of engineering CB Ojha confirmed that EEDL had deposited ₹871 crore and they will fully hand over the department’s assets in the first week of February, giving the firm complete control.
The assets being transferred include sub-division offices, division offices, a control room and other key infrastructure.
PR Kumar, president of power distribution at the RPSG Group, reassured employees that their welfare, including service conditions and retirement benefits, would be protected as per the agreement. “We are committed to delivering high-quality service to the people of Chandigarh while taking care of our employees,” he said.
The UT Administration had initiated the privatisation process in November 2020, with the RP-Sanjiv Goenka (RPSG) Group winning the bid in May 2021. The group’s subsidiary, EEDL, was awarded the contract after offering ₹871 crore against the reserve price of ₹175 crore.
In December last year, the Supreme Court had dismissed a petition by the powermen union, which had challenged the Punjab and Haryana high court’s decision that allowed the transfer. The union had argued that the administration was selling 100% stakes without any provision under the Electricity Act, 2003, despite the department generating surplus revenue for the past three years.
2 FIRs lodged against protesting employees
In a related development, the UT police registered two separate cases against workers of UT electricity department for holding protests in violation of orders of the district magistrate.
The first FIR has been lodged at the Sector 11 police station against Kirpal Singh, Satnam Singh and other workers who has held a protest near rally ground in Sector 25 on January 25.
Another case has been registered at the Sector 26 police station against Raghbir Singh, president, Federation of UT Employees, Dhyan Singh and other workers for a similar protest from Sector 28 to Punjab Raj Bhawan on January 26.
To prevent strikes by electricity employees protesting privatisation, the UT administration in December 2024 had invoked the East Punjab Essential Services (Maintenance) Act (ESMA), 1947, prohibiting strikes for six months with immediate effect.
