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Chandigarh

Privatisation of electricity in Chandigarh stayed by HC

VINOD GUPTA | December 02, 2020 02:34 PM

CHANDIGARH: The privitisation of electricity of Chandigarh electricity wing
has been stayed by the Punjab and Haryana high court.
The high court bench of justices Jitendra Chauhan and Vivek Puri stayed
the notice inviting bids till further orders.
As per order, the petitioners has contended that there is no provision of privatization under the
Electricity Act, 2003 and no provision has been framed for
reservation policy.The impugned action of the
respondents in taking effective steps to privatize the power utility in
Chandigarh by selling of 100% stake of the government is not legally sustainable,
the same being violative of Section 131 (2)
of the Act, as per which the power department/utility cannot be transferred
to a totally private entity with no stake or control of the Government at all.

The sale of 100% stake of the U.T. administration in the electricity wing
which is running in profits and is revenue surplus for
the past 3 years and is also economically efficient having T & D losses less
than 15 % of the target fixed by the Ministry of Power is unjust and illegal.

The transfer scheme has been prepared without calling for
the objections of all the stakeholders
The decision to privatise the department was taken on May 12 after directions from the Centre.
An empowered committee has been constituted to oversee and implement the process. As many as
17 firms have expressed interest after the administration on November 9 invited bids for privatisation.
The petition also mentions that All IndiaPower Engineers Federation
had requested to the Administrator UT that all steps
taken by UT administration in response to Government of India directions on
privatization should be withdrawn

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