The Union Cabinet has approved the formation of special purpose vehicle to privatise the electricity distribution business in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
The equity shares of the newly formed company will be sold to highest bidder and a trust will be formed for serving employees’ liabilities. A single distribution company i.e. DNH-DD Power Distribution Corporation Limited would be incorporated as a wholly owned Government Company and Trust(s) shall be formed to manage the terminal benefits of the personnel transferred to the newly formed company. Transfer of assets, liabilities, personnel etc to the newly formed company will be done as per the Dadra and Nagar Haveli and Daman and Diu Electricity (Reorganization and Reforms) Transfer Scheme, 2020. The privatisation process is expected to provide better services to over 145,000 consumers of Dadra & Nagar Haveli and Daman & Diu, lead to operational improvements and bring about functional efficiencies in distribution besides providing a model for emulation by other utilities across the country.