Chandigarh Accelerates Privatization of Electricity Department, CPDL Formation Complete

Chandigarh: The UT Administration has expedited the process of privatizing the electricity department. The formation of Chandigarh Power Distribution Limited (CPDL) has been completed, and all current employees will be transferred to the new entity. The Chandigarh Electricity Reform Transfer Scheme is being drafted to safeguard the interests of the employees. On Thursday, Punjab Governor and Chandigarh Administrator Gulab Chand Kataria chaired a meeting with senior administration officials, directing them to ensure the protection of service benefits for the electricity department employees.

Legal Developments and Privatization Progress

After the UT Powerman Union’s petition was dismissed by the Supreme Court on December 2, the administration resumed the privatization process. Eminent Power Company Limited made the highest bid to acquire the department, and the administration issued a Letter of Intent (LOI) to the company. Following approval from the Central Cabinet, the formation of CPDL was officially completed. A trust, named ‘Chandigarh Electricity Employees Master Trust,’ has been set up under the Indian Trust Act, 1882 to protect the interests of transferred employees. The Trust will be led by the Secretary of Engineering, with a Trustee Board including officials from Chandigarh Administration.

Transfer Scheme and Employee Protection

The administration is finalizing the Chandigarh Power Reform Transfer Scheme, which includes provisions to ensure employees’ benefits remain unchanged. According to the draft, employees who are transferred will not experience any reduction in their benefits. The continuity of service for these employees will be ensured across all matters. The company will not be allowed to deploy employees outside Chandigarh without their consent. The Trust will oversee the approval and distribution of terminal benefits based on the Trustee Board’s recommendations, ensuring full payment of the liabilities before its dissolution.

Privatization Context and Future Steps

The process to privatize the 175-crore Chandigarh electricity department started five years ago, with Eminent Electricity Distribution Limited submitting a final bid of 871 crores. Seven companies were in the bidding race, including Adani Transmission, Tata Power, and Torrent Power.