The Supreme Court on Monday stayed the Punjab and Haryana High Court’s order against the privatisation of Chandigarh electricity department, clearing the decks for the process.
The matter was listed before the bench of Justice Abdul Nazeer and Justice V Ramasubramanian.
On November 9, 2020, the UT Engineering Department had invited bids for the privatisation of the Electricity Department. 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.
Six companies — Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power and Torrent Power — had submitted their bids for the privatisation of the Electricity Department.
After the Administration restarted the process, the union again filed a petition in the High Court which again stayed the process on May 28, against which the UT Administration had filed a petition in the apex court. The UT administration had argued that the HC order goes against the SC’s previous order.
The order was passed on a fresh plea from the UT Powermen Union, which had approached the court stating that opening and finalisation of the tender bids be stopped. It was argued that the administration is not justified in hurrying through the process amid the pandemic.
The Bench was told that the process of privatisation of the wing could not be initiated at all, especially when it was running in profits. The sale of 100% stake was unjust and illegal as the wing was revenue surplus for the past three years. It was economically efficient, having transmission and distribution losses less than the target of 15% fixed by the Ministry of Power.
However, now the administration can go ahead with the process. “The administration will soon finalise the financial bids and hand over the power department to a private firm,” said a senior official, requesting anonymity.
Seven companies are in the fray: Sterlite Power, ReNew Wing Energy, NTPC Electric Supply Company Limited, Adani Transmission Limited, Tata Power, Torrent Power and Eminent Electricity Power Company.
