PRIVATIZATION OF ELECTRICITY DISTRIBUTION IN DADRA & NAGAR HAVELI AND DAMAN & DIU

Nov. 25, 2021

The Union Cabinet has approved the formation of Company (Special Purpose Vehicle) to privatize the electricity distribution business in the Union Territory of Dadra & Nagar Haveli and Daman & Diu (DNH&DD), sale of Equity Shares of the newly formed Company to highest bidder and formation of Trust(s) for serving employees’ liabilities.

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In May 2020, Government of India 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 UTs through privatization of the power distribution utilities, for leveraging private sector efficiency in electricity distribution.
A single distribution company i.e. 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.
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.

Source : PIB