Punjab and Haryana High Court stays Chandigarh electricity distribution company privatisation bid
The government’s plan to initiate privatisation in the power distribution sector beginning with sell-off of utilities in Union Territories has hit a roadblock. The Punjab and Haryana high court stayed the Centre’s privatisation bid of Chandigarh electricity distribution company saying it is illegal and the utility cannot be completely sold to private companies.
“The impugned action of the respondents in taking effective steps to privatise the Electricity Wing, U.T., Chandigarh/power utility in Chandigarh by selling of 100 per cent stake of the Govt. is not legally sustainable, the same being violative of Section 131 (2) of the Act, as per which the power department/utility cannot be transferred to a totally private entity with no stake or control of the Government at all,” the high court in its order said.
Chandigarh was the first Union Territory to issue tender inviting bids to sell off its power distribution company. The Central government had in May announced privatisation of discoms in union territories as part of its Atma Nirbhar Bharat plan. The last date for bid submission was December 30, 2020.
