Eminent Electricity Distribution Ltd, a wholly-owned subsidiary of CESC, has signed a deal worth Rs 871 crore to take over the electricity distribution company in the Union Territory of Chandigarh. The agreement follows the receipt of a ‘Letter of Intent’ (LOI) for acquiring 100% shares in the distribution entity responsible for supplying electricity in the region.
The pact, initially signed in 2021, got mired in court litigation filed by trade unions against the privatization move. However, a recent high court judgment came out in favor of the clearance of the contract. CESC had emerged as the highest bidder for the project in 2021, after outbidding Torrent Power, NTPC, ReNew Power, Adani, Tata Power, and Sterlite.
The deal is likely to be closed in 30 days or so, pending fulfillment of LOI conditions. CESC, part of the RP-Sanjiv Goenka Group, is already into city power distribution such as in Kolkata, Noida, Kota, Bikaner, Bharatpur and Malegaon.
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Source: Moneycontrol
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