The All India Power Engineers’ Federation (AIPEF), according to reliable reports, has sought scrapping of the ongoing bidding for privatization of distribution companies in Union territories.
It may be mentioned that such bidding is currently underway in the Union territories of Chandigarh and Dadra & Nagar Haveli and Daman & Diu (DNH&DD).
The federation has pointed out that no guidelines for competitive bidding for a distribution company in a Union Territory, have been envisaged in the Electricity Act, 2003. AIPEF has also stated that the draft National Electricity Policy 2021 is in conflict with the Electricity Act 2003 and must be withdrawn.
Privatization of distribution companies is not allowed by competitive bidding when the competitive bidding guidelines are non-existent and have not been issued, AIPEF said.
The decision of the central government on May 12 last year that the distribution function in all the UTs should be privatized is an executive decision of the Home Ministry and this should not overrule the provision of Electricity Act 2003 in a matter relating to the privatization of electricity, it pointed out
Broad Current Status
- Chandigarh: Seven bidders in the fray, technical evaluation underway
- DNH&DD: Torrent Power is frontrunner but Bombay High Court has stayed proceedings
