Punjab and Haryana High Court stays privatisation of Chandigarh electricity distribution

The Punjab and Haryana High Court has stayed the privatisation bid of Chandigarh’s Electricity Department. As per the order, selling 100 per cent stake of the government is not legally sustainable, and violates Section 131(2) of the Electricity Act, 2003, as per which a power department/utility cannot be transferred to a private entity with no stake or control of the government. Chandigarh is the first union territory (UT) to issue a tender inviting bids to sell off its power distribution company. Despite this, the central government has directed the Puducherry government to prepare a road map for unbundling and privatising its electricity distribution utility while the UT of Dadra & Nagar Haveli and Daman & Diu has invited bids to acquire a 51 per cent stake in its distribution company.