The schedule for the privatisation of Delhi Vidyut Board's (DVB) distribution utilities now hinges on the ratification of the petition forwarded to the state electricity regulator by the utility with regard to the bulk supply tariffs and opening level of aggregate technical and commercial losses for its three distribution companies.
As against an earlier deadline of January 31, the Delhi Electricity Regulatory Commission (DERC) is expected to announce its verdict on the tariff petition by next week only, officials said.
The delay has been attributed to the extension of the time-schedule for receiving public response to the petition.
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Meanwhile, four private sector players -- Tata Power, Reliance Power, Cescon and BSES -- are currently carrying out due diligence for a 51 per cent stake in DVB's three distribution companies.
The private sector players are expected to conclude the process by the end of February, with the last day for receipt of bids set for February 28, officials said.
Also, management control of not more than one company would be handed over to the same player.
"Even though all private players would be allowed to bid for the three distribution companies, only one player would be given management control of each zone," an official said.
The four players have started the process of due diligence from December 10.
Even though the bidding for the utility has been set back by one month, Delhi government officials expect to divest the government's equity stake in all the three distribution companies, each of which comprise two distribution circles, by end February 2001.
DVB had issued a request for qualifications (RFQs) to six companies in November of which two -- AES and China Light and Power Company -- have not turned up for carrying out due diligence.
The board had proposed a novel scheme for divesting the government's stake in the three distribution companies whereby players guaranteeing maximum improvement in efficiency norms would be handed over management control of the utilities.
Bids would be evaluated on the basis of the amount of losses proposed to be brought down for each distribution utility over a time frame.
SBI Capital Markets, consultants to the state government on the privatisation process, has valued DVB at Rs 3,160 crore using the business valuation model. The assets of the three distribution companies have been valued at Rs 290 crore for the central-east company, Rs 920 crore for the north-north west company and Rs 1,150 crore for the south-west company.
The generation and transmission entities would continue to remain under government control, even as majority holding in the three distribution companies would pass on to private hands.