CESC's subsidiary emerges highest bidder for Chandigarh biz at Rs 871 crore

Eminent Power, a subsidiary of Kolkata, has emerged as the highest bidder to take over Chandigarh Electricity Distribution business for Rs 871 crore, sources said.

The company pipped six firms including Torrent Power that quoted Rs 606 crore, NTPC’s bid of Rs 563 crore and ReNew Power that quoted Rs 551.5 crore for the distribution business. Adani Power quoted Rs 471 crore, while Tata Power bid Rs 426 crore. Sterlite Power quoted the lowest Rs 201 crore, they said.

The Union Territory opened price bids on Wednesday after the Supreme Court stayed the Punjab and Haryana high court’s order against the privatisation process. The high court had on December 1 stayed the privatisation plan, saying it is illegal and the utility cannot be completely sold to private companies.

The distribution utility had initiated the privatisation process in November last year. The UT has close to 3 lakh consumers, majority of which are domestic consumers.

Chandigarh was the first Union Territory to issue tender inviting bids to sell off its power distribution company after the central government had in May announced privatisation of discoms in Union Territories as part of its Atmanirbhar Bharat plan.

Privatisation plans of power distribution utilities in other union territories are at various stages of implementation.