The Union power ministry is set to privatise power distribution in Chandigarh. Union power minister PR Kumaramangalam said the power ministry has appointed a special committee to undertake privatisation of the Union Territory which would serve as a model for states which plan to privatise power distribution.
Although, the government has to decide the mode of privatising power distribution, the minister said the selection process could be through bidding. The move to privatise power distribution in Chandigarh comes as it comes directly under the Centre. As compared to Chandigarh, the minister said there would be more administrative difficulties privatising power distribution in Pondicherry, while there would be a poor response to Andaman and Nicobar.
The Union power ministry has not set any deadline for the privatisation, but the process is expected to get underway by February. The committee set up by the ministry is expected to appoint consultants for undertaking the valuation of the distribution assets in the city. One of the objectives of privatising power distribution in Chandigargh is to enable it to buy power from mega-power projects. Under the mega power policy, states which are to buy power from the projects should privatise cities having a population of more than one million.
In addition, as per the recent change in the mega power policy, the state also has to privatise the rural areas adjoining these cities. As per ministry figures Chandigarh does not have power shortage and as of April to October, 1999 Chandigarh's power requirement of 659 million units were fully met. Chadigargh presently gets most of its power from Bharkra hydel project at a cheap rate. LE>