Haryana power staff call 3-day strike against giving licence to private discom

HERC has granted Eleven Power Private Limited a 25-year parallel electricity distribution licence for Gurugram and Nuh. The decision means consumers in these areas may choose between the State-owned Dakshin Haryana Bijli Vitran Nigam and Eleven Power. It matters because the arrangement changes how electricity distribution will operate in a major, fast-growing region.

The Haryana Electricity Employees and Engineers Joint Front says the licence could undermine the State discom. It argues that high-revenue areas are being handed to a private player, while employees, farmers, and consumers may face risks. The Front has therefore called a three-day statewide strike beginning Thursday.

The dispute is also political. Power Minister Anil Vij said HERC acted autonomously despite the State government’s opposition to privatisation. He said the government will challenge the decision before the Appellate Tribunal for Electricity. The Front will announce its next steps on October 24.

A parallel electricity distribution licence permits another company to distribute power in an area already served by an existing discom. It does not automatically remove the original distributor. Instead, both companies can operate in the same territory, allowing eligible consumers to choose their supplier.

Here, HERC has licensed Eleven Power for Gurugram and Nuh under Section 14 of the Electricity Act, 2003. Dakshin Haryana Bijli Vitran Nigam already serves the region. Eleven Power says it will build a separate network in phases across all five licence-area divisions over five years, with Nuh included from the first phase.

The arrangement is unusual in Haryana. INLD leader Sampat Singh said two discoms had never previously been permitted to operate in the same territory there. The result could be competition, but employees and farmers fear unequal effects on public finances, prices, and service access.

The affected customer base is large: over 8.3 lakh consumers in Gurugram and Nuh. They include households, farms, shops, industrial units, and offices. These customers could choose between two discoms once the parallel distribution arrangement develops.

The area’s projected electricity sales show the scale of demand. Eleven Power’s petition forecasts annual sales of about 12,220 million units in financial year 2024-25. Based on growth rates approved by HERC, that figure is expected to reach about 18,224 million units by 2030-31. Gurugram, Manesar, Sohna, and Nuh are seeing rapidly rising demand.

The region also has an immediate reliability challenge. Many commercial establishments, industrial units, and high-rise residential buildings still use diesel generators during outages. The article does not provide a separate megawatt demand forecast for Gurugram and Nuh, but it reports 2,400 MW involved in pending connection and load-enhancement applications across Haryana.

Under Section 14 of the Electricity Act, 2003, HERC can grant electricity distribution licences within its regulatory jurisdiction. In this case, it issued Eleven Power Private Limited a 25-year licence covering Gurugram and Nuh. The order was dated October 19.

The key institutional point is that HERC is described as an autonomous body. That means the State government does not directly control every regulatory decision. The commission considered Eleven Power’s petition and approved a parallel licence, creating a second distribution option in territory served by Dakshin Haryana Bijli Vitran Nigam.

The State government opposed privatisation, but that opposition did not prevent HERC from issuing the order. Power Minister Anil Vij said the government would challenge it before the Appellate Tribunal for Electricity. Thus, HERC’s decision currently stands, while the government is pursuing a formal legal remedy against it.

Critics warn that prices, subsidies, service quality, and public finances could all be affected, but the article does not establish that any change will definitely occur. The main concern is that a private company may attract high-revenue consumers, leaving the State-owned discom with a weaker financial base while it continues serving other customers.

BKU leader Rattan Mann fears farmers and poor households in Nuh could lose subsidised electricity because the government has provided no written assurance that subsidies will continue. He also says higher tariffs could raise costs for Gurugram and Manesar businesses. A private entrant could, in principle, add investment and competition, but its effect would depend on tariffs, service obligations, and network performance.

Eleven Power has promised non-discriminatory supply to all consumer categories. It also committed to provide power on request under Section 43 and build its network across the licence area. The government’s appeal and the employees’ agitation will shape what happens next.

Eleven Power has made several commitments aimed at protecting access. In its petition, it promised to supply electricity on a non-discriminatory basis to all categories of consumers. That includes households, farms, shops, industrial units, offices, and other customers within the licence area.

It also committed to supply power on request under Section 43 of the Electricity Act, 2003. New connections, it said, would be released within the timelines set by HERC’s Electricity Supply Code. The company plans to build its network in phases over five years across all five divisions of the licence area. Nuh is scheduled for the first phase.

These promises address concerns about farmers, poor households, and delayed connections, but they do not include a written assurance that subsidies will continue. That gap is central to the BKU’s objection. Eleven Power’s delivery will therefore be judged by actual access, timelines, coverage, and treatment of different consumer groups.

In general, electricity reaches users through a chain: generators produce power, or distributors buy it from power producers; transmission lines carry it over long distances; local distribution networks then deliver it to homes, farms, shops, offices, and factories. Discoms manage these local networks, connections, metering, maintenance, and supply to customers.

In Gurugram and Nuh, Dakshin Haryana Bijli Vitran Nigam is the existing State-owned distributor. Eleven Power has received permission to build another local network and supply customers in the same territory. Its planned network will be constructed in phases over five years, while consumers may choose between the two discoms.

Electricity is treated as an essential public service because households, farms, hospitals, offices, and industries depend on reliable supply. The article highlights this dependence through rising demand and continuing diesel-generator use during outages. It also reports more than 1.3 lakh pending connection or load-enhancement applications across Haryana, showing why access and service quality matter.