Haryana to oppose private parallel power distribution licence in Gurgaon, Nuh: Power Minister

The Haryana government on Monday made it clear that it would oppose the grant of a parallel power distribution licence in Gurgaon and Nuh, amid growing resistance from power sector employees and engineers who have termed the move an attempt to privatise the electricity distribution in the state.

Power Minister Anil Vij told the Haryana Vidhan Sabha that the government had opposed the proposal before the Haryana Electricity Regulatory Commission (HERC) and would continue to do so. Vij also said that if necessary, the government would approach court in the matter.

Vij was responding to a demand made by Leader of Opposition Bhupinder Singh Hooda, who sought an assurance from the government that it would not allow a parallel electricity distribution licence in the two National Capital Region districts.

Clarifying the government's position, Vij said the application by Delhi-based Eleven Power Private Limited had been submitted directly to HERC, an autonomous regulatory body, and not through the state Energy Department. “The Commission has the authority to grant licences relating to electricity distribution.

When the Commission sought the state government's response on the matter, I and my entire staff opposed the proposal on every point,” Vij said. He said an open hearing was subsequently held, with various stakeholders putting forward their views.

“The state government also presented its position and opposed the granting of a parallel electricity distribution licence. Following this, the Commission constituted a three-member Expert Committee, which recommended that electricity distribution could be permitted,” he said.

According to Vij, the committee recommended that parallel electricity distribution be permitted. The government, however, did not accept the recommendation, Vij said, adding the government opposed every point made in the Expert Committee's report and submitted its own response to HERC.

The matter is scheduled to come up before the Commission for hearing on September 3. Vij said he wanted the Expert Committee's report to be made public before the hearing so that all concerned stakeholders could examine its recommendations and put forward their views.

The proposed licence has triggered opposition among power sector employees and engineers, who fear that allowing a private distributor alongside the existing state-owned utility could eventually lead to wider privatisation of the electricity sector.

The unions had announced a three-day strike from August 11, but deferred it following talks with Vij a day before the proposed agitation. The two districts are currently served exclusively by Dakshin Haryana Bijli Vitran Nigam (DHBVN).

Eleven Power Private Limited has approached HERC seeking a parallel distribution licence, arguing that competition could improve power supply, customer service and grievance redressal as electricity demand rises rapidly in Gurgaon, Manesar, Sohna and Nuh.

The company has said it aims to use new technology and focus on renewable energy to meet the growing demand by providing “reliable, uninterrupted and clean power”. The proposal has also faced opposition from state-owned Haryana Vidyut Prasaran Nigam Limited (HVPNL), which has questioned Eleven Power's lack of operational experience in electricity distribution and warned that an under-capitalised distributor could create a “serious systemic risk”.