Private firm takes over Chandigarh power supply

Despite back-to-back protests by employees, the decision to privatise the department remained unchanged. On Friday, a Share Purchase Agreement was executed between the Chandigarh administration, Eminent Electricity Distribution Limited (EEDL), and Chandigarh Power Distribution Limited (CPDL).

The electricity department has now been taken over by RP-Sanjiv Goenka (RPSG) Group. EEDL paid a total consideration of Rs 871 crore—significantly higher than the reserve price of Rs 174 crore.

On Friday, the firm announced the acquisition of the power distribution and retail supply business of the Electricity Wing of the Engineering Department, Chandigarh (EWEDC), effective immediately.

The privatisation move follows clearances from the Punjab and Haryana High Court in November 2024 and the Supreme Court’s final approval in December 2024.

With the takeover, assets, liabilities, power purchase contracts, and personnel from the previous entity have been transferred to CPDL, as per the transfer scheme notified by the UT administration. Employee service terms will remain unchanged, and a Pension Trust has been established for their benefit.

Speaking on the takeover, P. R. Kumar, President (Power Distribution) of RPSG Group, said, “We are excited to serve the people of Chandigarh and bring the high standards of reliability and service that our group is known for. We look forward to improving customer experience, infrastructure, and service delivery. With the addition of Chandigarh to our portfolio, we are poised to strengthen our leadership in the power distribution sector.”

What’s next

With this, Chandigarh joins the list of regions where power distribution has been privatised, following similar implementations in Dadra & Nagar Haveli and Daman & Diu in April 2022.

As part of the privatisation, the entire power distribution and retail supply business of EWEDC has been transferred to Chandigarh Power Distribution Limited (CPDL). CPDL is now fully owned by EEDL, a subsidiary of CESC Limited, the flagship company of RPSG Group.

What changes now?

• Consumer grievance redressal: CPDL will establish an advanced system, including a dedicated helpline and online complaint registration, to ensure prompt resolution of consumer issues.

• Infrastructure overhaul: The firm has announced significant investments in modernising the electrical infrastructure to provide 24×7, safe, and reliable power, promising an enhanced quality of service.

• Tariff regulation: The Joint Electricity Regulatory Commission (JERC) will continue to oversee consumer tariff determination to ensure transparency and fairness in pricing.

The firm has assured that “employee terms of employment have been fully protected, with no less favourable conditions than before the transfer. Employees will also benefit from exposure to state-of-the-art technology and comprehensive training programs to enhance their skills.”