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Empowering people through reforms: DVB shows the way : The Pioneer
The Delhi Government on Friday successfully completed the first phase of power reforms. With the announcement of Requisition for Proposal (RFP) by Chief Minister Sheila Dikshit on Friday, the path has been cleared for six shortlisted private sector companies to make the final bid for taking over the three companies (Discoms) among which the entire distribution network of the Delhi Vidyut Board (DVB) is proposed to be split.
The Delhi Government on Friday successfully completed the first phase of power reforms. With the announcement of Requisition for Proposal (RFP) by Chief Minister Sheila Dikshit on Friday, the path has been cleared for six shortlisted private sector companies to make the final bid for taking over the three companies (Discoms) among which the entire distribution network of the Delhi Vidyut Board (DVB) is proposed to be split.
"Power distribution would be fully privatised before summer," Chief Minister Sheila Dikshit said on Friday. Briefing newspersons about the Cabinet decision taken on the preceding day, the Chief Minister said: "A vision comes true today. We had visualised power reforms in the strategy paper published in February 1999. We have successfully completed the first lap by astute planning by the Delhi Government and the Vidyut Board officials." The Chief Minister later told the The Pioneer that Delhi becomes the first State to introduce power sector reforms without a hitch being created by the staff unions. "It was ensured that they (the unions) were consulted at every stage and their rights protected," the Chief Minister said.
"All the DVB employees have already been placed under three different companies. However, they have been given 60 days to file representation if they want to be shifted to the other distribution company. This will ensure that there is no arbitrary decision by the DVB while distributing the work force to different companies. But any change will not be possible once the private companies take over the distribution network," she said. Ms Dikshit said the shortlisted companies could submit their bids till January 31 while the privatisation process would be completed by February 28.
"The assets of DVB have been valued on the business valuation method which is considered appropriate in the given circumstances," she said, adding, "We have issued policy directions laying down the principles for bidding and related matters for sale of 51 per cent equity in the distribution companies.
The selection of the bidders will be based on the bid, which offers the greatest efficiency improvement over a period of five years," she said.
"Power distribution would be fully privatised before summer," Chief Minister Sheila Dikshit said on Friday. Briefing newspersons about the Cabinet decision taken on the preceding day, the Chief Minister said: "A vision comes true today. We had visualised power reforms in the strategy paper published in February 1999. We have successfully completed the first lap by astute planning by the Delhi Government and the Vidyut Board officials." The Chief Minister later told the The Pioneer that Delhi becomes the first State to introduce power sector reforms without a hitch being created by the staff unions. "It was ensured that they (the unions) were consulted at every stage and their rights protected," the Chief Minister said.
"All the DVB employees have already been placed under three different companies. However, they have been given 60 days to file representation if they want to be shifted to the other distribution company. This will ensure that there is no arbitrary decision by the DVB while distributing the work force to different companies. But any change will not be possible once the private companies take over the distribution network," she said. Ms Dikshit said the shortlisted companies could submit their bids till January 31 while the privatisation process would be completed by February 28.
"The assets of DVB have been valued on the business valuation method which is considered appropriate in the given circumstances," she said, adding, "We have issued policy directions laying down the principles for bidding and related matters for sale of 51 per cent equity in the distribution companies.
The selection of the bidders will be based on the bid, which offers the greatest efficiency improvement over a period of five years," she said.