Privatisation of UT discoms in the slow lane

Plans to privatise loss-making state-run electricity entities (discoms) are being hamstrung by political and legal hurdles, even as they continue to be a drain on the exchequer and a burden on the taxpayer.

Although the Centre announced a plan to privatise discoms by putting on the block all the six discoms in union territories (UTs) in May last year as part of the Atmanirbhar package, only two of them have called for bids so far – Chandigarh and Dadra and Nagar Haveli & Daman and Diu (DNHDD). And the sale of the Chandigarh discom is impended by a stay order by the Punjab and Haryana High Court.

The target was to privatise all UT discoms by January 2021.