First private player gets Haryana power regulator nod, faces government opposition

In a move that could end the monopoly of the state-owned Dakshin Haryana Bijli Vitran Nigam (DHBVNL) in the power-distribution sector, the Haryana Electricity Regulatory Commission (HERC) on Monday granted a 25-year parallel electricity distribution licence to a private company, Eleven Power Private Limited, for Gurugram and Nuh districts. The go-ahead, however, has drawn mixed responses. While the Haryana government is set to move the Appellate Tribunal for Electricity against the order, RWAs have welcomed the decision, hoping it could put an end to power cuts.

A coram (which is a bench of officials adjudicating the case), comprising Chairman Mukesh Garg and Member Shiv Kumar, cited chronic delays in installing electricity connections as the key reason behind introducing a private player. State discom data submitted to the commission revealed that DHBVNL alone had 1,08,590 applications pending for new meters and load increases as of October 2025, the order states.

If the decision, subject to review and approval, comes into effect, parts of Gurugram and Nuh will become the first districts in the state where consumers can choose their power suppliers.

Under its approved rollout plan, Eleven Power will invest Rs 4,716.73 crore over five years between 2026-27 and 2030-31. The bulk of this amount, Rs 4,650.37 crore, is earmarked for laying underground cabling and setting up power substations, officials said. The order directs Eleven Power to file a migration protocol within 60 days to govern how consumers can switch without disrupting supply or leaving unpaid dues. The company’s network will be funded entirely through private equity and loans, officials said.

Concerns flagged

Haryana Energy Minister Anil Vij took to X on Monday, stating that the state government will move the Appellate Tribunal, an autonomous body set up under the Electricity Act, 2003, against the order.

State power utilities have opposed the move during the hearings. The discoms argued that Gurugram generates a major portion of their revenue and losing commercial consumers could destabilise cross-subsidies that support subsidised power for farmers. Further, it alleged that Eleven Power would “cherry-pick” affluent urban segments and ignore less lucrative pockets.

Power employee unions, including the All India Power Engineers Federation, have also expressed reservation with the decision, calling it backdoor privatisation that could jeopardise state revenue and employment.

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Subhash Lamba, National Vice-President, Electricity Employees Federation of India, told The Indian Express that the order was ‘unilateral’. “Appeal is one option, but we had already taken permission for strikes anticipating this, for December 1-3. Now we may start on October 22 itself. We will not let this be implemented so easily. The HERC did not consider our detailed objections, and those submitted by farmers, RWAs and employees. Even the expert committee that had recommended the license earlier was inexperienced.”

However, defending the decision, HERC pointed out that Eleven Power has allocated Rs 304.37 crore to Nuh starting from its very first phase of work. The bench also ruled that prior distribution experience is not a legal bar, as the firm’s consortium partners possess technical expertise in high-voltage network management.

RWAs optimistic about the move

In sharp contrast, industrial associations and RWAS in Gurugram supported the entry of a private player. Representatives from the Gurgaon Industrial Association and local housing societies had pointed to recurrent summer outages and heavy expenditure on backup diesel generators, arguing that breaking the state monopoly was essential to securing round-the-clock power.

“We welcome the proposed entry of private power distribution in Gurugram, hoping it will improve efficiency, accountability and reliability, particularly here, where growing residential communities need uninterrupted power supply and prompt grievance redressal. We look forward to service standards comparable to Delhi, benefiting consumers across Gurugram”, Sunil Sareen, a resident of Emaar Imperial Gardens at Sector 102 and Deputy Convenor of the Dwarka Expressway Gurugram Development Association, said.

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Tapan Dey, a resident of M3M Marina at Badshahpur said, “Every summer, we survive power cuts through the day and night…..During longer outages, our society falls back on diesel generators, which is expensive and not good for the environment. What frustrates residents most is that, until now, there was simply no alternative. Having a second electricity provider will change that. If the service falls short, we will finally have the option to choose.”