Kolkata-based industrial and services conglomerate RP-Sanjiv Goenka (RPSG) Group is set to take over Chandigarh's electricity department.
On Wednesday, the group's wholly owned Calcutta Electric Supply Corporation (CESC) subsidiary, Eminent Electricity Distribution (EED), listed the highest bid for the department.
"The EED quoted an offer of around โนRs 871 million against the reserve price of โน175 million rupees, โsaid a senior UT official with knowledge of the development. The next highest bid of โนTorrent Power manufactured Rs 606 million (see box).
EED was one of seven companies in the running to take over the department, others being Sterlite Power, ReNew Wing Energy, NTPC Electric Supply Company Limited, Adani Transmission Limited, Tata Power and Torrent Power.
Originally, 21 companies had purchased the RFP, but only these seven entered the bidding stage. Technical offers from the seven companies were approved on Tuesday, after which financial offers were opened on Wednesday.
โThe final report of the tender will now be presented to the empowered committee on energy privatization headed by the UT advisor. After approval, the report will be sent to the government of the Union. The Union cabinet will make the final decision. It is likely that the entire process will be completed in a short time, โsaid the official, who did not want to be named.
The decision to privatize the electricity department was made on May 12, 2020, following instructions from the Center. The UT had promised to finish the process before the end of the year, but became embroiled in legal battles as the UT Powermen Union approached the Punjab and Haryana high court against privatization. The move also drew criticism from resident welfare associations and opposition parties.
The process was suspended twice by the superior court. More recently, on May 28, the HC had applied the brakes on privatization and even detained the administration for its โundue hasteโ during a raging pandemic. On both occasions, the administration had approached the Supreme Court, which allowed the process to continue. The HC will take up the case again on Thursday.
