Privatization of Electricity Distribution in UT Chandigarh
Administrator gives Directions to Ensure Safeguarding of Service Benefits for UT Electricity Employees
The Voice of Chandigarh News
As part of the major structural reforms in the power sector, the privatization of power distribution utilities has been envisaged under the ‘Aatm Nirbhar Bharat Abhiyan’ launched by the Government of India. This initiative aims to enhance consumer services, improve operational efficiency and provide a financially efficient distribution model that other utilities across the country can emulate.
Pursuant to this, the process of privatization was initiated in Chandigarh, with M/s Eminent Power Company Ltd. emerging as the successful bidder. After approval from the Union Cabinet, the ‘Chandigarh Power Distribution Limited’ (CPDL) has been formed. Advancing the privatization process, the Letter of Intent (LoI) has also been issued by Chandigarh Administration to the highest bidder.
The UT Powermen had filed a CwP in the Punjab and Haryana High Court. The court dismissed the plea challenging process of Chandigarh Administration for privatising the electricity wing of the UT engineering department.
Further the UT Powermen association filed an SLP. The SLP stands dismissed . Following the dismissal of Special Leave Petition of UT Powermen Union Chandigarh (Regd) by Supreme Court on 02.12.2024, a meeting was held today on 05th December 2024 under the Chairmanship of Sh. Gulab Chand Kataria, Administrator UT Chandigarh. In the meeting, the Administrator again gave directions that all existing service benefits of employees must be safeguarded and grievances of the UT Powermen Union should be addressed comprehensively.
In order to protect the interests of employees being transferred to CPDL, the ‘Chandigarh Electricity Employees Master Trust’ has been created under the Indian Trust Act, 1882. This trust will manage all terminal liabilities of the transferred employees, with an initial fund of ₹ 263 crore allocated by the company. The Trust shall be headed by the Secretary Engineering and managed by the Board of Trustees consisting of officers of Chandigarh Administration with Superintending Engineer Electricity Circle as the member Secretary. The Board will manage day to day functioning of the Trust.
The ‘Chandigarh Electricity Reforms Transfer Scheme’ has been formulated and the transfer of functions from Chandigarh Administration to ‘Chandigarh Power Distribution Limited’ (CPDL) shall be done after notification of the Transfer Scheme, wherein, specific provisions have been incorporated to safeguard the interests of the employees.
All benefits of service accrued including their entitled government benefits during their service under the Administration immediately before the transfer date, to the Company, shall be fully recognized and protected and taken into account for all purposes including for the payment of any or all terminal benefits of such personnel. The Accrual Study shall be carried out every year to assess the terminal liabilities of employers and the Company shall deposit the amount accordingly in the Trust.
The transferred employees, without their prior concurrence, shall not be posted outside Chandigarh by the company. Procedures for sanctioning and disbursing terminal benefits from the trust will be determined by the Administration based on recommendations from the Board of Trustees.
The Chandigarh Administration shall constitute a committee from transfer date to receive representations/suggestions on the transfer of personnel to the company and make a recommendation to the Administration in regard to their grievances in matters of transfer of personnel to the Company.
