AFPChanges in bid conditions for privatisation of Chandigarh electricity distribution company, including allowing new bidders to submit bids after the last date, have irked the industry which has demanded immediate withdrawal of changed rules. The Association of Power Producers (APP), which represents almost all private sector power producers, has shot off a strongly worded letter to the administrator of the Union Territory of Chandigarh. It said bidders have already submitted bids, and amendments to rules at this stage vitiate the sanctity of the entire process and sets a bad precedent for the future.
Six large corporates - state-owned NTPC, , Adani Transmission, Torrent Power, Sterlite Power and ReNew Power - had submitted bids to buy 100 per cent stake in the distribution company, which is responsible for distribution and retail supply of electricity in the UT of Chandigarh.
"The last date of bid submission was February 8, 2021, and the bid process attracted wide interest," APP wrote. "However, it is extremely surprising that an amendment to the RFP (request for proposal) documents was issued on March 8, 2021, i.e after the last date of bid submission."
The amendment not only modifies certain clauses that would have an impact on the financial bid but also "allows new bidders to submit bids after the last date of bid submission has already passed", it said in the latter. The copies of the letter was also marked to Power Minister R K Singh and Home Secretary Ajay Kumar Bhalla.
Pursuant to the government's initiative to privatise distribution utilities of Union Territories to usher in efficiency, notice inviting bids for distribution licence in Chandigarh was issued on November 9, 2020. Bids closed on February 8.
On March 8, Chandigarh UT issued an amendment to the bid document, modifying two clauses that will have minimal impact on the financial bids, and extending the bidding date to March 18. The amendment also provided an opportunity to new bidders to submit their bids as well as allowing existing bidders who have submitted their bids to modify their existing bids.
The changes include a tweak in the ratio of sharing of gains from over-achievement of transmission and distribution losses, which impacts the financial bids, according to APP. It sought immediate withdrawal of the amendment, and the bid process already initiated be taken to its logical end.
"As the financial bids have already been submitted by the bidders after due diligence and the last date for submission of bids has ended, such an amendment vitiates the sanctity of the entire process and sets a bad precedent for the future," it said.
Withdrawal of the amendment and concluding the currently on bid process will "ensure the sanctity and transparency of the process and is essential considering the fact that the process is one of the flagship reform initiatives of the Government of India in the power sector", the association added.
Six large corporates - state-owned NTPC, , Adani Transmission, Torrent Power, Sterlite Power and ReNew Power - had submitted bids to buy 100 per cent stake in the distribution company, which is responsible for distribution and retail supply of electricity in the UT of Chandigarh.
"The last date of bid submission was February 8, 2021, and the bid process attracted wide interest," APP wrote. "However, it is extremely surprising that an amendment to the RFP (request for proposal) documents was issued on March 8, 2021, i.e after the last date of bid submission."
The amendment not only modifies certain clauses that would have an impact on the financial bid but also "allows new bidders to submit bids after the last date of bid submission has already passed", it said in the latter. The copies of the letter was also marked to Power Minister R K Singh and Home Secretary Ajay Kumar Bhalla.
Pursuant to the government's initiative to privatise distribution utilities of Union Territories to usher in efficiency, notice inviting bids for distribution licence in Chandigarh was issued on November 9, 2020. Bids closed on February 8.
On March 8, Chandigarh UT issued an amendment to the bid document, modifying two clauses that will have minimal impact on the financial bids, and extending the bidding date to March 18. The amendment also provided an opportunity to new bidders to submit their bids as well as allowing existing bidders who have submitted their bids to modify their existing bids.
The changes include a tweak in the ratio of sharing of gains from over-achievement of transmission and distribution losses, which impacts the financial bids, according to APP. It sought immediate withdrawal of the amendment, and the bid process already initiated be taken to its logical end.
"As the financial bids have already been submitted by the bidders after due diligence and the last date for submission of bids has ended, such an amendment vitiates the sanctity of the entire process and sets a bad precedent for the future," it said.
Withdrawal of the amendment and concluding the currently on bid process will "ensure the sanctity and transparency of the process and is essential considering the fact that the process is one of the flagship reform initiatives of the Government of India in the power sector", the association added.
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2 Comments on this Story
 | Jayprakash Narayan Jha10 hours ago Need quick decision and attraction of Automaker against benchmark of Power,labour and logistics cost , safty and stability confidence and quick decision making . Also make special Automobile Ministry for fast action . We need to became top first Automaker in word . |
| Barkaway2 days ago They should thank the lord ! , certain governments change the rules after deal is done . Haha india is a pathetic country for business and certainly deserve to remain poor . |