The UT administration of Dadra and Nagar Haveli and Daman and Diu (DNHDD) have also invited tenders for the same.
Private power distribution company CESC, the wholly owned arm of Eminent Electricity Distribution, has emerged as the highest bidder to acquire a 100% stake in discom for the Union Territory (UT) of Chandigarh. Although the company did not disclose the financial details, sources said that Eminent traded Rs 871 crore, beating the offer of Rs 606 crore from Power of the torrent, Rs 563 crore per NTPC, 551 rupees per Renew power, Rs 471 crore by Adani Group, Rs 426 crore by Tata Power and Rs 201 crore quoted by Sterlite Power.
"The above acquisition for the distribution license is subject to further formalities as prescribed in the bidding documents, including the receipt of the letter of intent," added the CESC stock exchange filing. CESC supplies electricity in its 567-square-kilometer distribution circle in Kolkata, and also runs a licensed power distribution business in Noida. RP-Sanjiv Goenka Group company also has distribution franchises in Kota, Bharatpur, Bikaner and Malegaon.
The Center had announced in May 2020 that the energy departments and distribution utilities in UT would be privatized, and Chandigarh was the first UT to issue a notice inviting tenders for the same. The UT administration of Dadra and Nagar Haveli and Daman and Diu (DNHDD) have also invited tenders for the same.
Due to low levels of aggregate technical and business (AT&C) losses, an indicator of theft, nuisance that has arisen in tenders is considered the โlowest fruitโ among all UTs. Chandigarh consumes around 1.6 billion units (MU) in a year and more than 50% of the demand comes from industrial and commercial consumers, significantly reducing concerns about the timely receipt of government subsidies. The Chandigarh discom tender was interrupted by worker protests, and the Punjab and Haryana High Court suspended the privatization process in December. However, the High Court had suspended the High Court order and, in February, the High Court had asked the Punjab and Haryana High Court to quickly make a final decision on the privatization of the discoms.
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