The Cabinet approved the formation of an SPV to privatize the electricity distribution activities in the Union territory of Dadra & Nagar Haveli and Daman & Diu (DNH & DD), the sale of shares of the newly formed company to bidder and the formation of trust (s)) for serving employee liability, according to an official statement.
According to the statement, said privatization process will achieve the desired results of better services to more than 1.45 lakh of DNH & DD consumers, operational improvements and functional efficiency in distribution and provide a model for emulation by others. utilities across the country.
This will further lead to increased competition and strengthen the electricity industry and also lead to the recovery of unrealized contributions.
In May 2020, the Indian government announced the âAtmaNirbhar Bharat Abhiyanâ, to make India autonomous through structural reforms.
One of the key measures planned was to reform electricity distribution and retail supply in UTs through the privatization of public electricity distribution services, in order to take advantage of private sector efficiency in distribution. electricity.
A single distribution company, DNH-DD Power Distribution Corporation Ltd, would be incorporated as a 100% public company and trusts would be formed to manage the final benefits of personnel transferred to the newly incorporated company.
The transfer of assets, liabilities, personnel, etc. to the newly incorporated company will be carried out in accordance with the Dadra and Nagar Haveli and Daman and Diu (reorganization and reforms) electricity transfer program, 2020. PTI KKS KKS DRR DRR