The Haryana power sector could be on the verge of a significant transformation after an Adani Group power distribution company formally applied for a licence to supply electricity in Gurugram. If approved, it would mark the first major private-sector entry into electricity distribution in the city, introducing competition alongside the existing state-run utility.

The application has been submitted before the Haryana Electricity Regulatory Commission (HERC) under Section 15 of the Electricity Act, 2003, which lays down the procedure for granting electricity distribution licences. Following a public hearing, the Commission has reserved its order, with a final decision awaited.

Parallel Distribution Model Proposed

The proposal is based on provisions of the Electricity Act, 2003, which permit more than one electricity distribution licensee to operate within the same geographical area.

If the licence is granted, consumers in Gurugram would have the option to choose their electricity supplier while the existing state-owned Dakshin Haryana Bijli Vitran Nigam (DHBVN) would continue its operations. The move is not aimed at privatising the state utility but at introducing a parallel electricity distribution network.

Under the proposal, the new licensee would be required to establish and operate its own independent power distribution infrastructure instead of using DHBVN's existing network.

Adani and Another Firm in the Race

Apart from the Adani Group, Eleven Power Private Limited has also sought a distribution licence for Gurugram and neighbouring Nuh district.

The company submitted its application on May 12, which was admitted by HERC on May 26. During the hearing, it proposed an investment of ₹4,716.73 crore to develop electricity infrastructure in the two districts.

The investment plan includes:

• ₹1,415.02 crore through equity.

• ₹3,301.71 crore through debt financing.

• An energy mix comprising 80% renewable power and 20% thermal energy.

• Smart metering and digital billing systems.

• Transparent tariff mechanisms.

• A time-bound consumer grievance redressal system.

The company also assured the Commission that it would provide electricity to all categories of consumers, including domestic, industrial, commercial, agricultural and economically weaker sections, in line with the universal service obligations under the Electricity Act.

Public Hearing Sees Mixed Response

During the public hearing conducted by HERC, a significant number of participants reportedly supported the entry of private electricity distributors.

According to submissions made during the proceedings, nearly 70% of participants favoured allowing private companies to supply electricity, arguing that increased competition could improve service quality and operational efficiency.

However, the proposal also drew opposition from employee associations and political leaders.

Opposition Voices Concerns

Former Haryana Finance Minister and Indian National Lok Dal (INLD) leader Sampat Singh criticised the proposed private-sector entry, alleging that the government was attempting to privatise the state's power distribution system. He said his party would oppose the move.

The Haryana Engineering Officers Association also expressed reservations, stating that it opposed the introduction of private electricity distributors into the state's power sector and would continue raising its concerns before the Commission.

Potential Impact on Consumers

If approved, the parallel distribution model could introduce competition in electricity services, potentially encouraging improvements in customer service, billing transparency and network efficiency.

Consumers would continue receiving electricity from the state utility if they choose, while those preferring a private distributor could opt for the new service once operational. Since every licensee would maintain its own distribution infrastructure, existing government networks would remain unaffected.

The model is similar to the multi-licensee electricity distribution system currently operating in Mumbai and has also received judicial backing in certain cases relating to parallel electricity networks.

Awaiting Regulatory Decision

The Haryana Electricity Regulatory Commission has reserved its decision after completing the public hearing. The final order will determine whether Gurugram becomes the first city in Haryana to adopt a competitive electricity distribution framework involving both public and private suppliers.