New Delhi: Union Cabinet on Wednesday approved the Formation of Special Purpose Vehicles (SPV) to privatize the electrical distribution business in the Union Dadra & Nagar Haveli and Daman & Diu.
The Union Cabinet, chaired by Prime Minister Narendra Modi, also approved the sale of new company equity shares formed with the highest bidder and the formation of trust to serve employee obligations.
The Cabinet has approved the establishment of the SPV to privatize the electrical distribution business in the Union Dadra & Nagar Haveli and Daman & Diu (DNH & DD) region (DNH & DD), the sale of new company equity shares formed for the budget and the formation of the highest trust (s) to serve employee obligations, a word Official statement.
According to the statement, the privatization process will meet the desired results of better services to more than 1.45 Lakh Consumers DNH & DD, increased operational and functional efficiency in distribution and provide models for emulation by other utilities throughout the country.
This will then lead to increased competition and strengthen the electricity industry and will also cause recovery of unrealized contributions.
In May 2020, the Indian government has announced ‘Atmanirbhar Bharat Abhiyan’, to make India Mandiri through structural reform.
One of the main steps planned is to reform the power distribution and retail supply in UTS through the privatization of the power distribution utility, to utilize the efficiency of the private sector in electrical distribution.
A single distribution company, DNH-DD Distribution Distribution Ltd., will be included as a government company and fully owned trust must be formed to manage the benefits of personel terminals transferred to newly formed companies.
Transfer assets, liabilities, personnel etc.
to newly formed companies will be carried out according to the Dadra transfer scheme and Nagar Haveli and Daman and Daman and Reformation and Reformation), 2020.