The exercise to carry out competitive bidding for the privatization of UT Dadra, Nagar Haveli,Daman Diu (DNHDD) was carried out recently for sale of 51% of the equity to the highest bidder. Subsequent to the opening of financial bids, there was public interest litigation in the Bombay High Court which stayed further proceedings.

2.   It is often argued that with privatization the losses would be reduced. In the National Electricity Policy at para 5.4.4 it is stated as under.

            “Private sector participation in distribution needs to be encouraged for achieving the requisite reduction in transmission and distribution losses and improving the quality of service to the consumers”.

2.1   However in the case of UT Dadra, Nagar Haveli, Daman Diu (DNHDD) the losses are categorized in two parts, one part being the distribution system loss within the union territory and the second part is the transmission system loss from the generation point up to the periphery of the union territory. In case of UT Dadra, Nagar Haveli, Daman Diu (DNHDD) the major portion of energy consumption is already at HT level with the result that the two categories of losses are in the range of 3% to 4% only.

2.2   In the latest tariff petition filed by DNH Power Distribution Corporation Ltd. The following statement is made at para 4.4 relating to distribution loss reduction.

            “DNHPDCL has achieved distribution loss level of 3.45% for the FY 2019-20 as against the target of 4.30% given by the Hon’ble Commission in the Tariff Order for the FY 2019-20. Further, the Hon’ble Commission had set a T&D loss level target of 4.10% for the FY 2021-22 in the Tariff Order dated 20^th May, 2019. The DNHPDCL has kept the T&D losses at the same level as approved by the Hon’ble Commission for FY 2021-22. Reduction of Distribution loss will involve significant amount f capital expenditure and it is DNHPDCl’s endeavor to bring the Distribution loss leave further down in the subsequent years. The projected distribution loss for the FY 2021-22 is as given in the table below.

            The DNHPDCL requests the Hon’ble Commission to approve the distribution loss as projected for the FY 2021-22”.

2.3   As regards the transmission loss (energy loss from the generating or supply point upto the UT periphery) for FY 2021-22 the figure given in ARR petition is 3.66%.

3.    From the above data it is seen that the UT already meets the requirement of low transmission and distribution losses as per provision of National Electricity Policy and there was no justification to go ahead to privatise the electricity distribution in this union territory.

4.   All India Power Engineers Federation therefore stresses that Ministry of Power may issue directions that the electricity distribution of UT Dadra, Nagar Haveli, Daman Diu (DNHDD) should be retained in the public sector.

 Thank you with regards.

Sincerely Yours

Shailendra Dubey

Chairman