HERC forms expert panel to examine parallel distribution licence bid
The Haryana Electricity Regulatory Commission (HERC) has constituted a three-member independent expert committee to examine an application seeking a parallel electricity distribution licence for Gurugram and Nuh districts, reserving its final order until the panel submits its findings.
In its interim order dated July 9, 2026, issued after hearings concluded on July 8, the commission said the proposal involves significant legal, technical, financial, commercial and regulatory considerations that warrant an independent assessment before any decision is taken.
The application has been filed by Eleven Power Private Limited under Sections 14 and 15 of the Electricity Act, 2003, seeking permission to operate as a parallel distribution licensee in the two districts currently served by Dakshin Haryana Bijli Vitran Nigam (DHBVN).
Expert committee
The committee will be headed by Alok Nigam, former Additional Chief Secretary to the Government of Haryana and former Chairman-cum-Managing Director of Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Haryana Vidyut Prasaran Nigam Limited (HVPNL).
Its other members are Ravinder Kumar Sharma, former Managing Director of Himachal Pradesh State Electricity Board Limited, and Bibhu Prasad Mahapatra, former Director (Finance) with power utilities in Uttar Pradesh and Odisha.
The panel has been asked to review the licence application, responses filed by state utilities, objections raised by intervenors and all documents placed on record. It will examine whether the proposal complies with the Electricity Act, 2003, HERC’s licensing regulations and other applicable statutory provisions governing parallel distribution licences.
HERC clarified that the committee’s recommendations will be advisory in nature and that the final decision will rest with the commission.
The petitioner has been directed to deposit Rs 30 lakh towards the committee’s expenses. The panel commenced work on July 13, 2026, and has been asked to submit its report within 15 days.
Licence application
Eleven Power Private Limited is promoted by the Eleven Group. The company’s director is Sunil Sachdeva, co-founder of Medanta – The Medicity.
The proposal seeks to establish a parallel distribution network in Gurugram and Nuh, where electricity distribution is currently undertaken exclusively by DHBVN.
In an earlier interim order issued in May 2026, HERC had raised concerns regarding the company’s financial capability, infrastructure preparedness and the possibility of cherry-picking profitable consumers. It had also sought No Objection Certificates (NoCs) from HVPN regarding transmission capacity and land availability for substations, in addition to a separate NoC from the Ministry of Defence.
Utility concerns
State-owned utilities DHBVN, UHBVN and HVPN have opposed the proposal, arguing that entry of a private distribution company could adversely affect the financial viability of the incumbent utility.
According to submissions made before the regulator, the utilities contend that a private operator may focus primarily on high-value industrial and commercial consumers while leaving loss-making consumer categories with the state utility.
They have also raised questions regarding Eleven Power’s net worth, creditworthiness, capital adequacy and its ability to meet the universal service obligations prescribed under Section 43 of the Electricity Act.
The utilities further argued that the state has invested significantly in building power infrastructure across the proposed licence area over several decades and that parallel licensing could impact revenues and employment within the public sector distribution companies.
Political opposition
The proposal has also attracted opposition from the Indian National Lok Dal (INLD).
Addressing the media, INLD national patron and former minister Prof Sampat Singh said the party had submitted 112 objections before HERC. He claimed that Gurugram contributes around 42% of DHBVN’s revenue while reporting distribution losses of only 4.7%, making it one of the utility’s most profitable service areas.
The party has questioned the experience and technical capabilities of Eleven Power and alleged that privatisation of profitable distribution circles could adversely affect consumers, employees and farmers.
Regulatory considerations
In its order, HERC observed that HVPN is responsible for transmission system operations, scheduling and maintaining grid stability across the state.
The commission noted that the proposed licence could have implications not only for the financial position of the incumbent distribution licensee but also for overall system operations and grid management.
“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 stated.
HERC’s final decision on the application is expected after the expert committee submits its report.
Sources: Hindustan Times, The Times of India
The featured photograph is for representation only.
