Haryana’s power sector faces competitive era

At a time when Haryana’s power utilities are grappling with mounting losses and a severe cash crunch, a private company has approached the Haryana Electricity Regulatory Commission (HERC) seeking a parallel electricity distribution licence in Gurugram and Nuh districts, currently served exclusively by Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL).The development has triggered concern within the state’s power sector, with officials viewing it as a potential challenge to the monopoly enjoyed by government-owned distribution companies. The HERC has scheduled a public hearing on July 8 on the petition filed by Eleven Power Private Limited to ensure transparency and invite views from stakeholders and the public.Sources indicated that the move could be linked to rising debt and operational inefficiencies in the state’s distribution companies — DHBVNL and Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL). However, several consumers and power sector officials fear that granting a parallel licence in the two districts could deal a severe blow to the financial viability of government-run utilities.A senior official said Gurugram remains one of DHBVNL’s best-performing districts. “About 75% of the total revenue comes from Gurugram, Faridabad and Rewari districts. Gurugram is among the districts with the lowest line losses,” the official said.DHBVNL and UHBVNL are the state’s distribution licensees, while power procurement for both utilities is handled by the Haryana Power Purchase Centre (HPPC) through UHBVNL.While hearing the petition on May 26, the HERC observed that the introduction of a parallel distribution licensee could alter the existing consumer mix and impact DHBVNL’s ability to sustain the prevailing cross-subsidy mechanism under which certain consumer categories subsidise agricultural and rural consumers.The Commission also noted that Haryana Vidyut Prasaran Nigam Limited (HVPNL) could be affected by the proposed arrangement.“Accordingly, the potential impact of the proposed licence on the financial viability of the incumbent distribution licensee as well as on system operation and grid management warrants careful examination,” the Commission said in its order.The concerns come against the backdrop of the deteriorating financial health of the state’s power utilities. Accumulated losses of the power corporations have reached Rs 27,915 crore, including Rs 13,380 crore incurred by DHBVNL alone.Power utilities attribute their financial stress largely to rising consumer receivables. Outstanding dues from consumers had crossed Rs 10,000 crore by September 2025 and continue to rise annually.The inability to recover dues has forced the utilities to rely heavily on borrowings. As a result, the combined outstanding loans of Haryana’s power utilities stood at Rs 30,904 crore by the end of 2025.Former minister Prof Sampat Singh expressed concern over the proposed privatisation, warning that consumers could ultimately bear the burden.“Privatisation could hit consumers hard, especially in the absence of a competing company in a district like Gurugram. Profit would be the sole motive of the firm,” he said. However, a senior power utility official argued that competition is in line with the provisions of the Electricity Act, 2003.

Haryana’s power sector faces competitive era

Loss-making discoms wary as private player seeks entry into lucrative market

Deepender Deswal

Tribune News Service

Haryana’s power sector faces competitive era

Loss-making discoms wary as private player seeks entry into lucrative market

Deepender Deswal

Tribune News Service

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