CESC subsidiary to acquire Chandigarh electricity distribution company

Eminent Electricity Distribution, a subsidiary of CESC under the RP-Sanjiv Goenka Group, has secured a letter of intent (LoI) to acquire 100 per cent equity in Chandigarh’s electricity distribution and retail supply company for Rs 8.71 billion. 

This marks a major step in the privatisation of power distribution in the union territory, following nearly three years of delays.

CESC won the tender in 2021, emerging as the highest bidder in a competitive process with Rs 8.71 billion, surpassing Torrent Power’s Rs 6.06 billion and NTPC’s Rs 5.63 billion. The acquisition was delayed by legal challenges from trade unions and employees of the Chandigarh Power Department. The Punjab and Haryana High Court recently dismissed these petitions, clearing the way for privatisation.

Eminent Electricity Distribution plans to finalize the transaction within 30 days, subject to conditions in the LoI. 

The acquisition expands CESC’s distribution footprint, which already includes Kolkata, Howrah, Noida, Kota, Bikaner, Bharatpur (Rajasthan), and Malegaon (Maharashtra).