Panel to set up firm to take over assets

Chandigarh, November 6

The Empowered Committee on privatisation of the Electricity Department has decided to formulate a company that will take over the assets of the department. The first meeting of the committee, which was attended by a representative of the Ministry of Power, along with the transaction adviser, was held today.

The committee finalised the Request for Proposal (RFP) and also letter to be written to the Joint Electricity Regulatory Commission (JERC) regarding the transfer scheme.

It was also decided to create a Trust, which will manage the pension obligations for government employees, who will be shifted to the private company. Several decisions were also taken to improve competition among the bidders.

UT Adviser Manoj Parida said since Chandigarh was a compact well-administered territory, there would be several bidders for privatisation offer and the decision would be taken with total transparency.

He also assured that the interest of existing employees would be protected when privatisation was completed.

On privatisation, the department will become an autonomous body, which will be divided into the State Transmission Utility (STU) and the State Load Dispatch Centre (SLDC). The STU will be responsible for smooth transmission of power and the SLDC will be the main body to ensure integrated operation of power system. — TNS