CHANDIGARH: After the amendment of the power privatization bid document, one more firm has participated in the UT’s power privatization project.
Kolkata-based Eminent Electricity Power Company has submitted its bid after the UT extended the bidding date to March 18. Now, seven firms are in the fray in Chandigarh.
The UT engineering department had issued notice on November 9, 2020, and invited bids for distribution licence in Chandigarh. The bids closed on February 8.
On March 8, UT had issued an amendment to the bid document and extended the bidding date to March 18. The amendment also provided an opportunity to new bidders to submit their bids and allowed the existing bidders to modify theirs. UT chief engineer CB Ojha said they will open technical bids of the seven firms on Monday.
During an inter-ministerial meeting held in Delhi on February 26, it was decided that the UTs, where the privatisation process was in the last phase, would continue with the procedure. As many as 20 intended bidders purchased the tenders, but only six companies —Sterlite Power, ReNew Wing Energy, NESCL (NTPC), Adani Transmission Ltd, Tata Power and Torrent Power —had submitted their bids. Later, Kolkata firm too participated in it.
Recently, the Supreme Court had vacated the stay of the Punjab and Haryana high court after which the UT once again started the power privatization process. The SC had issued its order on the UT’s petition against HC’s order of staying the directive of the administration, wherein it had floated a tender for privatisation of the electricity department.
On December 1, 2020, the high court had stayed the privatisation till the next hearing and issued a notice to the Union government, the UT administration and the UT chief engineer on a petition filed by Gopal Dutt Joshi, general secretary, UT Powermen’s Union. While challenging the UT’s decision to float tender for privatization, the petitioner had submitted that the electricity rates were less in Chandigarh in comparison to the neighboring states and still the department was in profit. Despite the good financial state, the UT administration wanted to privatise it, he said.
The UT administration, in its tender, had proposed to give licence to a distribution company, to be finalised after the bidding process, for 25 years under the project.