Centre explores legal recourse to HC stay on Chandigarh discom privatisation

The union government is studying a legal recourse against the Punjab and Haryana High Court’s order that stayed the privatization of Chandigarh’s electricity distribution company (discom), said a person aware of the development.

This comes in the backdrop of Punjab and Haryana High Court on Tuesday admitting the plea of the UT Powermen Union, Chandigarh and putting a stay on the notice inviting bids till further orders. The Chandigarh discom sale also marks the start of India’s efforts to privatise electricity discoms of its Union Territories as part of its next generation power sector reforms.

The Tribune reported that the UT Administration has decided to file a review petition in the Punjab and Haryana High Court against the order that stayed the privatisation of the electricity department.

“The union government is studying the stay order and preparing its next course of action,” said the person cited above requesting anonymity.

“The matter is being examined and suitable legal remedial measure will be taken,” added a union power ministry official who also did not want to be named.

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