CHANDIGARH: The UT administration will give an incentive to the power distribution company, which will be finalised after the bidding process, if its performance surpasses the set target.
In the proposal submitted before the Joint Electricity Regulatory Commission (JERC) for the privatisation of the UT electricity department, the administration stated, “T&D losses, collection efficiency and aggregate technical and commercial (AT&C) losses trajectory for the next five years will be fixed in the request for proposal (RFP). An incentive will be allowed to the distribution company if the actual performance surpasses the same.”
Recently, the UT administration had written a letter to the JERC and submitted a roadmap for the department’s privatisation. For the project, nine private firms, including CESC Limited, Torrent Power Limited, Sterlite Power, Adani Transmission Limited, Tata Power Company Limited, GMR Generation Asset Limited, India Power Corporation Limited, DNH Power Distribution Corporation Limited and NTPC Electric Supply Limited, have bought RFP documents till date.
Meanwhile, in the letter written to the JERC, the UT also submitted that they have decided to formulate a company first, which will take over the assets of the power department. It was also decided to create a trust, which will manage the pension obligations of the government employees, who will be shifted to the private company.
The administration had sought the advice of the power regulatory body on the principles of the reorganisation and transaction of the electricity department.
Despite protests by the UT powermen union, the UT administration, on the directions of the Union government, has started the privatisation process. The UT has appointed Pawan Kumar Sharma, executive engineer, UT electricity department, as nodal officer for all activities related to privatization, including tendering, coordination with various departments, ministry and transaction advisor.
In May, Union finance minister Nirmala Sitharaman had said that electricity distribution companies in union territories (UTs) would be privatised. Earlier, the UT had engaged a government-owned power finance corporation limited to unbundle the electricity department and transform it into a corporation.
Meanwhile, the UT power department employees continued with their protest against the move. They have even sought help from the city residents and various political parties.
