Haryana Energy Minister Anil Vij on Monday said the state government would challenge the Haryana Electricity Regulatory Commission's (HERC) decision to grant a parallel electricity distribution licence to a private company for Gurugram and Nuh districts.
Vij said the government would approach the Appellate Tribunal for Electricity (APTEL) against the commission's order granting a licence to Eleven Power Private Limited.
"The government will appeal to APTEL against the order of the Haryana Electricity Regulatory Commission granting a parallel electricity distribution licence to Eleven Power Private Limited for Gurugram and Nuh," Vij said in a post on X in Hindi.
The announcement came after HERC, in an order dated October 19, granted Eleven Power a 25-year electricity distribution licence covering both revenue districts under Section 14 of the Electricity Act, 2003.
๐ฅ๐ ๐ฐ,๐ณ๐ญ๐ณ ๐ฐ๐ฟ๐ผ๐ฟ๐ฒ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐ฝ๐น๐ฎ๐ป๐ป๐ฒ๐ฑ
According to a statement issued by Eleven Power, the company plans to invest Rs 4,717 crore in developing electricity distribution infrastructure over the next five years.
The company expects to begin supplying electricity in 2027-28, subject to the development of its distribution network.
The licence permits Eleven Power to operate alongside the existing state-owned electricity distributor, Dakshin Haryana Bijli Vitran Nigam (DHBVN), rather than replacing it.
Consumers in Gurugram and Nuh will not be required to take any immediate action, and DHBVN will continue supplying electricity to its existing customers.
The option to switch distributors will become available as Eleven Power expands its network into different areas.
๐ฉ๐ถ๐ท ๐ต๐ฎ๐ฑ ๐ผ๐ฝ๐ฝ๐ผ๐๐ฒ๐ฑ ๐ฝ๐ฟ๐ผ๐ฝ๐ผ๐๐ฎ๐น
The Energy Minister had earlier opposed the proposal to allow private companies to operate parallel electricity distribution networks in Gurugram and Nuh.
In August, Vij said the application had been submitted directly to HERC, an autonomous regulatory body, rather than through the state's Energy Department.
He maintained that the government had not initiated the proposal and that he had opposed it when the commission sought the state's response.
Vij had said he raised objections to every aspect of the proposed parallel distribution licence.
His latest announcement indicates that the government intends to pursue a legal challenge against the regulator's decision.
๐๐ก๐๐ ๐ฟ๐ฎ๐ถ๐๐ฒ๐ ๐ฐ๐ผ๐ป๐ฐ๐ฒ๐ฟ๐ป๐
Meanwhile, Indian National Lok Dal (INLD) patron and former minister Sampat Singh criticised the decision, warning that it could weaken Haryana's public electricity distribution system.
Singh described the approval as more than a routine regulatory decision and alleged that it could adversely affect farmers, rural households and economically weaker consumers.
"It is a grave and irreversible assault on Haryana's public power sector, on the interests of farmers, rural consumers and the poor, and on the very principle that essential services must serve people before profit," Singh said in a statement.
He pointed out that the approval would allow two electricity distribution agencies to operate within the same geographical area, a departure from the existing arrangement in Haryana.
"For the first time in Haryana, two distribution agencies have been permitted to operate in the same territory," Singh said.
He also questioned the state government's role in the matter, alleging that the decision could not be viewed solely as an independent regulatory action.
๐๐ผ๐ป๐ฐ๐ฒ๐ฟ๐ป๐ ๐ผ๐๐ฒ๐ฟ ๐๐๐๐ฉ๐ก ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ
Singh argued that Gurugram accounts for a disproportionately large share of DHBVN's revenue and has relatively low electricity distribution losses.
He expressed concern that competition in such a commercially important area could affect the financial position of the state-owned utility.
The opposition leader maintained that any weakening of the public distributor could have consequences for consumers in less profitable rural areas.
However, Eleven Power's licence does not immediately alter existing electricity supply arrangements, and consumers will continue receiving power from DHBVN unless they choose to switch when an alternative network becomes available.
The matter is now expected to move to APTEL, where the state government intends to challenge the regulatory approval.