The Delhi High Court on Tuesday issued notice to the city government on a petition challenging the privatisation of Delhi Vidyut Board (DVB) on the ground that it was being done to create a monopoly of a private company. A division bench comprising Chief Justice S B Sinha and Justice A K Sikri, while directing the Delhi government to file reply to the petition within a week, fixed the matter for further hearing on May 21.
Challenging certain provisions of the Delhi Electricity Regulation Act (DERA) passed by the government to facilitate privatisation of DVB, a PIL by Gajendra Haldiya contended that by proposing to create Transmission Company (TRANSCOM) and Distribution Company (DISCOM) for supply and distribution of electricity in the capital, government has attempted to create a monopolistic mechanism in the name of privatisation. Former finance minister P Chidambaram, appearing for the petitioner said that Section 20(9) of the DERA, restricts the grant of licence to another party for supply of electricity in a particular area, which was contrary to the electricity act.
Chidambaram said that the electricity act mandates that the grant of licence for any purpose shall not in any way hinder or restrict the grant of licence to another person within the same area of supply like purposes. The Electricity Regulatory Commission Act, 1998 had unequivocally mandated healthy competition In the power sector and holds that monopolies are legally untenable and liable to be set aside, he said adding that the petitioner was not against privatisation but against creating monopoly of a private company.

Bureau Report