Eminent Electricity Distribution Secures Chandigarh Deal

Eminent Electricity Distribution Ltd, a CESC Ltd subsidiary, has been awarded a Letter of Intent for acquiring full equity in Chandigarh's electricity distribution. This Rs 871-crore deal, previously delayed by legal challenges, is now clear to proceed following a court ruling dismissing the employee petition against privatisation.

After a prolonged legal battle lasting nearly three years, Eminent Electricity Distribution Ltd, a subsidiary of CESC Ltd from the RP-Sanjiv Goenka Group, has finally received the Letter of Intent to acquire 100 per cent equity in a Chandigarh-based electricity distribution company.

The substantial Rs 871-crore deal saw CESC outshine competitors like Torrent Power, NTPC Ltd, ReNew Power, Adani, Tata Power, and Sterlite during the financial bidding process held in 2021. However, the privatisation faced significant pushback from trade unions, delaying the acquisition.

A recent decision by the Punjab and Haryana High Court dismissed the petition lodged by employees of the Chandigarh Power Department, eliminating legal barriers to the privatisation of power distribution in the union territory. The transaction is anticipated to conclude within 30 days, pending fulfilment of conditions specified in the LOI.

(With inputs from agencies.)