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Tribune News Service

Chandigarh, November 18

At least nine firms have evinced interest in electricity distribution in the city. UT Adviser Manoj Parida said the Request for Proposal (RFP) was today issued to nine intended bidders, including Torrent Power Limited, Adani Transmission Limited, Tata Power Company Limited, GMR Generation Asset Limited, India Power Corporation Limited, DNH Power Distribution Corporation Limited, NTPC Electricity Supply Limited (NESCL), Sterlite Power and CESC Limited.

2.5 lakh consumers in city beautiful

There are 2.5 lakh power consumers in the UT. Among them, 2.15 lakh are domestic consumers. They account for over 87 per cent of the total power consumers. The remaining are categorised as commercial, small, bulk, public lighting, agriculture and temporary supply consumers.

On November 9, the UT Engineering Department had invited bids for privatisation of the Electricity Department as per the conditions set in the RFP, which was finalised by the Empowered Committee constituted for the privatization of the Electricity Department. The committee had also decided to form a company to take over assets of the department.

Chandigarh was the first Union Territory to issue the RFP. Since Chandigarh was a well administered territory, there would be many bidders for the privatisation offer and decision would be taken with total transparency, said Parida.

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

A Trust would be created to manage the pension obligations of government employees, who would be shifted to private company, Parida added.

On privatisation, the Electricity 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 the power system.

Earlier, the Power Finance Corporation (PFC) had appointed Deloitte, a private company, as a consultant to prepare a comprehensive report on unbundling of the Electricity Department.

The Centre had decided to privatise electricity distribution in the Union Territories to provide better service to consumers and improve operational and financial efficiency.

The Joint Electricity Regulatory Commission (JERC) had already issued directions to the UT Administration for restructuring and reformation of the department, which is mandatory as per the Electricity Act, 2003.

Opposing the privatisation of the department, Gopal Datt Joshi, general secretary, UT Powermen Union, said it was the most profit-earning department of the UT and had never been in the red even as it does not generate power. Despite staff shortage, the department was serving the public with the best services, he added.