The union cabinet has approved the formation of a special purpose vehicle (SPV) to privatise the electricity distribution business in the union territories of Dadra & Nagar Haveli and Daman & Diu. Equity shares of the newly formed company will be sold to the highest bidder and a trust will be formed for serving employee liabilities. A single distribution company, DNH-DD Power Distribution Corporation Limited, will be incorporated as a wholly owned government company and trust(s) will 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 & Nagar Haveli and Daman & Diu Electricity (Reorganisation and Reforms) Transfer Scheme, 2020.