Dushyant Singh Pundir

Tribune News Service

Chandigarh, August 3

The UT Administration is likely to open financial bids tomorrow to finally give the Electricity Department into private hands.

Sources said the technical bids of all seven firms in the fray to take over the department were approved today.

Meanwhile, recommendations of the Empowered Committee were also approved by UT Administrator VP Singh Badnore today. The recommendations contained the report of the Technical Bids Evaluation Committee.

After the opening of financial bids, the UT Administration would recommend the name of the highest bidder to the Union Cabinet for final approval.

On November 9, 2020, the UT Engineering Department had invited bids for the privatisation of the Electricity Department.

Seven companies - Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power, Torrent Power and Eminent Electricity Power Company - had submitted their bids.

On a petition filed by the UT Powermen Union, the Punjab and Haryana High Court had on December 1, 2020, stayed the tendering process regarding privatisation of the Electricity Department.

The petitioner had contended that they were aggrieved by the decision of the government to privatise the electricity department by selling 100 per cent stake of the government in the absence of any provision under Section 131 of the Electricity Act, 2003.

The High Court was also told that the process of privatisation of the department could not be initiated at all, especially when it was running in profits. The sale of 100 per cent stake was unjust and illegal as the department was revenue surplus for the past three years. It was economically efficient, having transmission and distribution losses less than the target of 15 per cent fixed by the Ministry of Power.

However, On January 12, the Supreme Court had stayed the order of the High Court and on January 14, the UT Administration resumed the sale of tender for the privatisation process.

Panel recommendations approved

Recommendations of the Empowered Committee were approved by UT Administrator VP Singh Badnore on Tuesday. The recommendations contained the report of the Technical Bids Evaluation Committee.