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State Focus Haryana Policy Economy & Banking Polity & Governance

Haryana's power regulator stops the parallel distribution licence for Gurugram and Nuh after a written state direction

The Haryana Electricity Regulatory Commission has decided not to take further steps on the parallel power distribution licence it had given to Eleven Power Private Limited for the Gurugram and Nuh revenue districts. The Commission had granted that licence for 25 years on 19 October, and the company accepted it on 21 October. On 26 October the state's Energy Department wrote to the Commission under Section 108(1) of the Electricity Act, 2003, directing that no parallel distribution licence be created, operationalised or effectuated anywhere in Haryana, with the Chief Minister's approval. The Commission held that Section 108(1) obliges it to follow written government directions on policy matters, and that under Section 108(2) the government's view on whether a question is one of public-interest policy is final. Since the directions cover the whole state, it said nothing was left for it to decide, and it refused the company's request for advance notice and a hearing. The licence has not been cancelled, but it cannot be put into effect while the directions stand. The company had proposed capital investment of Rs 4,717 crore over five years with supply from 2027-28, in a licence area of five divisions covering more than 8.3 lakh consumers. The state's own distribution company for the area, Dakshin Haryana Bijli Vitran Nigam, had opposed the licence on grounds that included cross-subsidy, stranded costs and duplicated infrastructure.

Licence term: 25 years Proposed investment: Rs 4,717 crore Consumers in licence area: over 8.3 lakh Provision invoked: Section 108, Electricity Act, 2003
Why it matters for exams: Section 108 of the Electricity Act, 2003 lets a state government direct its regulatory commission on policy, a live Polity and Economy point.
UPSCSSC
28 October 2026 Source: The Tribune

In plain words

HERC Haryana Electricity Regulatory Commission — The state regulator that licenses distribution and fixes electricity tariffs in Haryana.

DHBVN Dakshin Haryana Bijli Vitran Nigam — The state-owned company that distributes electricity in southern Haryana, including Gurugram.

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