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Business News/ News / India/  Discom privatization plan for UTs gains pace, govt seeks bid for Chandigarh unit
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Discom privatization plan for UTs gains pace, govt seeks bid for Chandigarh unit

The next set of discom privatisation bids will be shortly called for Andaman and Nicobar Islands, Dadar and Nagar Haveli, and Daman and Diu

Unlike discoms in the states, which fall under the remit of the respective state governments, there is a separate dispensation for discoms in UTs, as they are administered directly by the central government. Photo: Priyanka Parashar/Mint (Priyanka Parashar/Mint)Premium
Unlike discoms in the states, which fall under the remit of the respective state governments, there is a separate dispensation for discoms in UTs, as they are administered directly by the central government. Photo: Priyanka Parashar/Mint (Priyanka Parashar/Mint)

New Delhi: The next set of discom privatisation bids will be shortly called for Andaman and Nicobar Islands, Dadar and Nagar Haveli, and Daman and Diu.

New Delhi: India has kickstarted the process of privatization of its power distribution territories in the union territories (UTs), with bids being called for purchase of entire 100% stake in the Chandigarh discom.

According to the notice inviting tender (NIT) floated by the electricity wing of engineering department of Chandigarh, the last date to submit request for proposals (RFP) document is 30 December. A pre bid meeting has been called on 1 December.

“The Chandigarh discom is expected to be awarded by 15 January," said one person aware of the development.

The next set of privatisation bids will be shortly called for the discoms of Andaman and Nicobar Islands, Dadar and Nagar Haveli, and Daman and Diu. Discoms of Puducherry, and Jammu and Kashmir and Ladakh are not immediately on offer due to issues such as geographical challenges, political opposition and security respectively. With the electricity load for Lakshadweep Islands being low, it is also currently not being considered for privatization.

While Deloitte has been mandated to help with the sale process to privatize discoms in the three Union territories of Chandigarh, Puducherry and Andaman and Nicobar Islands; SBI Capital Markets Ltd has received the mandate for Dadar and Nagar Haveli, Daman and Diu, Jammu and Kashmir and Ladakh.

Mint reported on 15 May about India’s plan to privatise all electricity discoms in the Union Territories. These discoms have an enterprise value of around $700 million. Unlike discoms in the states, which fall under the remit of the respective state governments, there is a separate dispensation for discoms in UTs, as they are administered directly by the central government.

“We are bound by confidentiality obligations and are unable to comment on client-specific matters," a Deloitte spokesperson said in an emailed response.

Queries emailed to the spokespersons of union power ministry and SBI Capital Markets Ltd on Tuesday morning wasn’t immediately answered.

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ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
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Published: 10 Nov 2020, 04:44 PM IST
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