Power sector reforms gain pace as pvt cos bid to buy UT discoms
India’s next generation power sector reforms have gained traction with private firms, including ReNew Power Ventures Pvt. Ltd, Adani Group, Torrent Power, and CESC Ltd, bidding for the power distribution companies (discoms) for the Union territories (UTs) of Dadra and Nagar Haveli, and Daman and Diu, said two people seeking anonymity.
State-run NTPC Ltd, Adani Group, ReNew Power, Tata Power, Torrent Power, and Sterlite Power have also placed their bids to acquire the Chandigarh discom, as part of India’s efforts to privatize discoms.
India seeks to privatize the discoms for eight Union territories for an enterprise value of around $700 million. Unlike the discoms run by state governments, discoms for the Union territories are administered by the Centre.
“The successful bidders will be announced shortly. Dadra and Nagar Haveli and Daman and Diu discoms have been clubbed to bid out,” said one of the two people mentioned above.
The discom privatization plan for Union territories was articulated by finance minister Nirmala Sitharaman when she announced the fourth tranche of the ₹20 trillion stimulus package to fight the covid-led economic crisis.
Deloitte is running the sale process for the discoms in Chandigarh, Puducherry and Andaman and Nicobar Islands, while SBI Capital Markets Ltd has the mandate for Dadar and Nagar Haveli, Daman and Diu, Jammu and Kashmir and Ladakh.
