Eminent Electricity Distribution, a subsidiary of CESC, has received a letter of intent (LoI) to acquire 100 percent equity in Chandigarh’s electricity distribution and retail supply company. This acquisition, worth Rs 871 crore, marks a significant milestone in the privatisation of power distribution services in the union territory, even as the development comes after nearly three years of delays.

CESC, part of the RP-Sanjiv Goenka Group, was awarded the tender for the Chandigarh distribution business in 2021 after it emerged as the highest bidder in a competitive financial process. However, the deal faced legal hurdles when trade unions and employees of the Chandigarh Power Department challenged the privatisation bid in court. The Punjab and Haryana High Court recently dismissed the petitions, effectively clearing the path for privatisation.

Eminent Electricity Distribution now aims to complete the transaction within 30 days, subject to conditions outlined in the LoI. This move is expected to streamline power supply services and bring in private sector efficiencies. CESC’s winning bid was Rs 871 crore, against competitors like Torrent Power with a bid of Rs 606 crore, and NTPC with a abid value of Rs 563 crore. Other notable bidders included Adani, Tata Power, and Sterlite, demonstrating the high level of interest in the project.

With this acquisition, CESC expands its presence in power distribution, which already includes operations in Kolkata, Howrah, Noida, Kota, Bikaner, Bharatpur ( Rajasthan), and Malegaon in Maharashtra.