For privatisation of the UT electricity department, the administration will first formulate a company and then privatise it. This was decided during the first meeting of the empowered committee on power privatisation which was held on Friday. The representative of the power ministry, along with the transaction adviser, attended the meeting.
The committee finalised the request for proposal (RFP) and the letter to be written to the joint electricity regulatory commission (JERC) regarding the transfer scheme.
It was decided to formulate a company first, which will take over the assets of the power department. It was also decided to create a trust to manage the pension obligations for the government employees, who will get transferred to the private company.
Several decisions were taken to improve competition among the bidders. UT adviser Manoj Parida stated that since Chandigarh is a well-administered territory, there will be many bidders for the privatisation offer and the decision will be taken with total transparency.
He also said that the interest of existing employees will be protected after privatisation.
