Engineers' federation asks govt to put discom privatisation on hold
POWER & RENEWABLE ENERGY

Engineers' federation asks govt to put discom privatisation on hold

The All India Power Engineers Federation (AIPEF) has urged the government to put on hold the privatisation of electricity distribution companies (discoms).

AIPEF told the media that the government must put on hold the privatisation of electricity distribution and stop entrusting the electricity departments of union territories (UTs) to private enterprises.

The federation mentioned that neither the draft Electricity Amendment Bill 2021 nor the standard bidding document has been finalised, but the UTs of Chandigarh and Dadra Nagar Haveli are moving rapidly towards the privatisation of their electricity departments.

The standard bid documents for privatising electricity discoms were put on the Ministry of Power's (MoP) website on 22 September 2020, and were to be applied across the country.

The ministry has stated that the standard bid documents have still not been finalised, claimed AIPEF. The federation pointed out that this puts a question on the entire bidding process of UTs privatisation process.

While in Chandigarh, the bidding was for 100% equity, in Dadra Nagar Haveli, it was for 51%. There is confusion and uncertainty in overbidding the process itself, it claimed.

AIPEF said that in the case of Dadra Nagar Haveli, the bids had been opened, and Torrent had claimed to have won the bid with the highest offer of Rs 555 lakh against a reserve price of Rs 150 lakh.

The Bombay High Court has stayed the further process in case of a PIL filed before it. In the case of UT Chandigarh, the technical bids were opened on March 18, but the opening of financial bids is awaited.

The UT Power Union had challenged the bidding before Punjab Haryana High Court, and the next date of hearing is April 29, it said. The draft amendment bill 2021 has been circulated to the selected few in the month of February, and the power ministry held a discussion on the proposals with all the state power secretaries and CMDs of discom and regulators, stated AIPEF.

Image Source


Also read: NITI Aayog lists 12 PSUs for privatisation

Also read: Ministry of Power: Discoms owe Rs 12.3k cr to RE companies

The All India Power Engineers Federation (AIPEF) has urged the government to put on hold the privatisation of electricity distribution companies (discoms). AIPEF told the media that the government must put on hold the privatisation of electricity distribution and stop entrusting the electricity departments of union territories (UTs) to private enterprises. The federation mentioned that neither the draft Electricity Amendment Bill 2021 nor the standard bidding document has been finalised, but the UTs of Chandigarh and Dadra Nagar Haveli are moving rapidly towards the privatisation of their electricity departments. The standard bid documents for privatising electricity discoms were put on the Ministry of Power's (MoP) website on 22 September 2020, and were to be applied across the country. The ministry has stated that the standard bid documents have still not been finalised, claimed AIPEF. The federation pointed out that this puts a question on the entire bidding process of UTs privatisation process. While in Chandigarh, the bidding was for 100% equity, in Dadra Nagar Haveli, it was for 51%. There is confusion and uncertainty in overbidding the process itself, it claimed. AIPEF said that in the case of Dadra Nagar Haveli, the bids had been opened, and Torrent had claimed to have won the bid with the highest offer of Rs 555 lakh against a reserve price of Rs 150 lakh. The Bombay High Court has stayed the further process in case of a PIL filed before it. In the case of UT Chandigarh, the technical bids were opened on March 18, but the opening of financial bids is awaited. The UT Power Union had challenged the bidding before Punjab Haryana High Court, and the next date of hearing is April 29, it said. The draft amendment bill 2021 has been circulated to the selected few in the month of February, and the power ministry held a discussion on the proposals with all the state power secretaries and CMDs of discom and regulators, stated AIPEF. Image Source Also read: NITI Aayog lists 12 PSUs for privatisation Also read: Ministry of Power: Discoms owe Rs 12.3k cr to RE companies

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?