Torrent Power says Bombay HC suspends tenders for discom privatisation where company emerged winner
The Bombay High Court has suspended the tender process for the privatisation of the power distribution company for the union territories of Dadra and Nagar Haveli, and Daman and Diu, where Ahmedabad-headquartered Torrent Power had emerged as the best bidder, the company informed the bourses on Thursday.
On February 20, Torrent Power had announced that it was the highest bidder for the sale of 51% stake in the discom for the union territories which had an annual revenue of Rs 4,500 crore.
“We would like to further inform that the Honourable Bombay High Court has, inter alia, suspended the tender process in a public interest litigation case before the court until further orders in the matter,” Torrent said in the statement on Thursday.
The company had earlier said that the discom sold 9,000 million units of power every year and had 1.5 lakh consumers. The bid for the stake in the discom is a part of the government’s strategy to privatise these utilities to improve efficiency.
Torrent Power distributes nearly 16.66 billion units of power to over 36.5 lakh customers in Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
