Haryana Government Opposes Parallel Power Distribution Licence

Haryana's Energy Minister, Anil Vij, stated that the state government is opposing a proposal to grant a parallel electricity distribution licence in Gurugram and Nuh to private power companies. Vij made the remarks while responding to a question on the second day of the monsoon session of the Vidhan Sabha.

Vij clarified that the application by Delhi-based Eleven Power Private Limited was submitted directly to the Haryana Electricity Regulatory Commission (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.

The minister said that an open hearing was held, during which stakeholders put forward their views and the state government presented its opposition. Following the hearing, HERC constituted a three-member Expert Committee, which recommended that parallel electricity distribution could be permitted. Vij said the state government did not accept the recommendation and opposed every point in the Expert Committee's report, submitting its own response to HERC.

Legal and Procedural Steps

The matter is scheduled to come up for hearing before HERC 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. He also urged the Opposition to oppose the move. "We will approach the court if need be," Vij said, emphasising that the government would continue to oppose the proposal.

Stakeholder Reactions

The proposed licence has drawn opposition from 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. Unions had announced a three-day strike from August 11 but deferred it following talks with Vij a day before the proposed agitation.

Gurgaon and Nuh 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. The company has said it aims to use new technology and focus on renewable energy to meet growing demand.

State-owned Haryana Vidyut Prasaran Nigam Limited (HVPNL) opposed the proposal, warning of a "serious systemic risk" and questioning Eleven Power's operational experience.