Sampat Singh targets BJP, Congress over Haryana power privatisation

Former Haryana finance minister and Indian National Lok Dal (INLD) leader Sampat Singh has launched a sharp attack on both the ruling Bharatiya Janata Party (BJP) and the Congress over the decision to grant a parallel electricity distribution licence to a private company in Gurugram and Nuh districts. Accusing both parties of failing to protect public interests, Singh questioned why neither the state government nor the principal Opposition party had formally opposed the proposal before the Haryana Electricity Regulatory Commission (HERC).

Addressing a press conference on Saturday, Singh expressed surprise that the BJP government had not submitted objections before the regulatory commission despite subsequently announcing its opposition to the decision. He also criticised the Congress for failing to make a representation during the commission's proceedings, accusing its leaders of raising objections only after the licence had been granted.

The controversy follows HERC's decision to award a 25-year parallel electricity distribution licence to Eleven Power Private Limited, allowing the company to establish a distribution network alongside the existing state-owned utility, Dakshin Haryana Bijli Vitran Nigam (DHBVN).

𝗦𝗶𝗻𝗴𝗵 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗖𝗼𝗻𝗴𝗿𝗲𝘀𝘀 𝗿𝗼𝗹𝗲

Singh accused the Congress of failing to discharge its responsibility as the principal Opposition party in Haryana. He alleged that Congress leaders had not submitted any formal objections during the regulatory proceedings but were now publicly criticising the government's handling of the issue.

The INLD leader accused the Congress of shedding "crocodile tears" over the privatisation controversy and questioned why the party had not intervened when the application was being considered.

He maintained that the INLD was the only political party that had opposed the proposal both through public protests and by presenting its objections before the commission.

Singh said his party was prepared to pursue legal remedies through constitutional institutions to protect the interests of electricity consumers, farmers and employees.

His criticism comes even as senior Congress leaders, including former chief minister Bhupinder Singh Hooda, have publicly opposed the decision and warned that the entry of a private distributor could weaken the financial position of the state-owned electricity utility.

𝗕𝗝𝗣 𝗴𝗼𝘃𝘁 𝗳𝗮𝗰𝗲𝘀 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀

Singh also questioned the Haryana government's decision to challenge the regulatory order after the licence had already been granted.

He alleged that the government had failed to intervene effectively during the regulatory process and was now attempting to distance itself from the decision.

Earlier, Singh had urged Chief Minister Nayab Singh Saini to invoke Section 108 of the Electricity Act, 2003, to issue policy directions in the public interest. He called for immediate steps to secure the cancellation of the parallel distribution licence rather than relying solely on an appeal against the regulator's order.

The Haryana government has indicated that it intends to challenge HERC's decision before the Appellate Tribunal for Electricity.

Power Minister Anil Vij has also opposed the grant of the licence, maintaining that the government does not support the privatisation of electricity distribution.

However, the opposition has questioned how the regulator proceeded with the approval despite the state government's stated position.

𝗖𝗼𝗻𝗰𝗲𝗿𝗻 𝗼𝘃𝗲𝗿 𝗽𝘂𝗯𝗹𝗶𝗰 𝘂𝘁𝗶𝗹𝗶𝘁𝗶𝗲𝘀

Singh warned that allowing private companies to enter profitable electricity distribution markets could undermine the financial stability of public utilities.

He argued that private operators could concentrate on industrial, commercial and high-paying urban consumers, while state-owned companies would continue to shoulder the responsibility of rural electrification, agricultural supply and subsidised electricity for economically weaker households.

According to Singh, such an arrangement could weaken the cross-subsidy system through which revenue from higher-paying consumers helps support affordable electricity for other categories.

He maintained that Gurugram was among the most profitable areas served by DHBVN and that allowing a private distributor to compete for consumers there could adversely affect the utility's revenue.

The former minister also raised concerns about the financial implications of maintaining existing public infrastructure while another distributor develops a parallel network.

𝗥𝘀 𝟰,𝟳𝟭𝟳 𝗰𝗿𝗼𝗿𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗽𝗹𝗮𝗻

Under the regulatory approval, Eleven Power Private Limited has been granted a 25-year licence for parallel electricity distribution in Gurugram and Nuh.

The company has proposed an investment of approximately Rs 4,717 crore over five years, beginning in 2026-27, to develop distribution infrastructure, including underground cables and substations.

The proposed network is expected to cover more than 8.3 lakh consumers across Gurugram city, suburban areas, Manesar, Sohna and Nuh.

The regulatory arrangement is intended to introduce competition in electricity distribution and provide consumers with a choice of suppliers.

HERC has maintained that existing state-owned distribution companies will continue their operations and that consumers will not be compelled to switch providers. Electricity tariffs will remain subject to regulatory oversight.

Supporters of the parallel distribution model argue that competition could encourage infrastructure investment, improve service quality and reduce delays in providing new electricity connections.

However, employee organisations and opposition leaders have questioned the financial implications for public utilities and the long-term consequences for consumers receiving subsidised electricity.

𝗣𝗼𝘄𝗲𝗿 𝘀𝘁𝗿𝗶𝗸𝗲 𝗱𝗶𝘀𝗿𝘂𝗽𝘁𝘀 𝘀𝘂𝗽𝗽𝗹𝘆

The controversy has also triggered protests by electricity employees and engineers across Haryana.

A three-day strike beginning on October 23 disrupted electricity services in several districts, with employees demanding the cancellation of the private distribution licence.

The agitation reportedly affected fault repairs, electricity supply and industrial operations in parts of the state.

Singh said the disruption had caused substantial economic losses and inconvenience to consumers. He accused the government of allowing the situation to deteriorate despite repeated warnings from employee organisations.

The INLD has extended its support to the protesting electricity employees and engineers, maintaining that their concerns about the future of public distribution companies deserve serious consideration.

Singh reiterated that his party would oppose any move that threatened public electricity infrastructure or transferred profitable business to private operators at the expense of farmers, domestic consumers and employees.

The controversy is expected to continue as the Haryana government prepares its legal challenge and employee organisations press for the withdrawal of the licence.