Chandigarh reiterates its stance, says not issuing LoI to pvt agency till matter pending

The Chandigarh Administration have reiterated their statement before the Punjab and Haryana High Court regarding non-issuance of Letter of Intent (LoI) to the private agency till the matter is pending before court.

The UT Administration on March 10, 2022 had assured the Powermen Union that no LoI will be issued to the private agency as long as the matter remains pending. The High Court is hearing the petition filed by UT Powermen Union challenging privatisation of the electricity wing of UT. Meanwhile, when the matter came up for hearing before the HC on Monday, Senior Standing Counsel, appearing for Chandigarh, prayed for further time to seek instructions and if necessary to file an affidavit.

The Union had contended that the sale of 100 per cent stake was unjust and illegal as the electricity wing had been revenue-surplus for the past three years. It was economically efficient having transmission and distribution losses less than the target of 15 per cent fixed by the Ministry of Power. As per Section 131(2) of the Act, power could not be transferred to a totally private entity with no stake or control of the government.