The Government of India approved the formation of a Company (Special Purpose Vehicle) to privatize the electricity distribution business in the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD), informed the Union Minister Anurag Thakur on Wednesday.
Addressing the Cabinet Briefing today, Thakur also informed that in the Union Cabinet meeting chaired by Prime Minister Narendra Modi, the Central government has approved the sale of equity shares of the newly formed Company to the highest bidder and formation of Trust(s) for serving employees' liabilities.
"The said privatisation process will fulfil the desired outcomes of better services to over 1.45 lakh consumers of DNH and DD, operational improvements and functional efficiencies in distribution and provide a model for emulation by other utilities across the country," the official release said.
It further said that this will lead to an increase in competition and strengthen the electricity industry and will also lead to recovery of unrealized dues.
In May 2020, the Centre had announced 'AtmaNirbhar Bharat Abhiyan', to make India self-reliant through structural reforms.
One of the key measures planned was to reform the power distribution and retail supply in the union territories through privatization of the power distribution utilities, for leveraging private sector efficiency in electricity distribution.
A single distribution company, that is, DNH-DD Power Distribution Corporation Limited would be incorporated as a wholly-owned Government Company and Trust(s) shall be formed to manage the terminal benefits of the personnel transferred to the newly formed company, the release said.
"Transfer of assets, liabilities, personnel etc to the newly formed company will be done as per the Dadra and Nagar Haveli and Daman and Diu Electricity (Reorganization and Reforms) Transfer Scheme, 2020," it added.
( With inputs from ANI )
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