Centre asks Haryana to fast-track stock listing of four state-owned power companies

The Centre has urged Haryana to complete the necessary approvals and appoint consultants to take the listing process forward

The Union power ministry has asked the Haryana government to expedite the stock-market listing of its four state-owned power companies to attract investment, raise capital for modernisation and reduce dependence on state budgetary support, officials said on Wednesday.

A senior energy department official said the boards of the four companies currently took independent decisions on financial and operational matters, including borrowing from banks. (Stock Photo)

The move comes amid concerns over privatisation following last week’s strike by four power employees’ unions against the Haryana Electricity Regulatory Commission (HERC)’s decision to grant a 25-year parallel distribution licence to Eleven Power Private Limited in Gurugram and Nuh.

In an October 19 letter to the Haryana chief secretary, a copy of which is with HT, the Union power secretary said the four companies were eligible for listing, which would improve their financial sustainability, operational performance and corporate governance.

The companies are Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) and Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL), which distribute electricity to consumers, Haryana Power Generation Corporation Limited (HPGCL) and Haryana Vidyut Prasaran Nigam Limited (HVPNL), the state’s power transmission utilities.

The Centre has urged Haryana to complete the necessary approvals and appoint consultants to take the listing process forward. The companies will also have to prepare road-maps outlining the steps required for listing and submit them to the ministry for assessment.

However, state energy department officials said the proposal was being viewed as a step towards privatisation, an issue that had triggered last week’s strike.

The strike, which began at 10pm on October 21, led to widespread power outages before being called off on October 23 following a meeting between union leaders and chief minister Nayab Singh Saini. The government assured employees that private players would not be allowed to enter the state’s power distribution sector.

The government subsequently invoked Section 108 of the Electricity Act, 2003, directing HERC not to create or operationalise parallel distribution licences anywhere in Haryana. On Wednesday, HERC decided not to proceed further with Eleven Power’s licensing matter as long as the directions remained operative.

A senior energy department official said the boards of the four companies currently took independent decisions on financial and operational matters, including borrowing from banks. He said both discoms were profitable and had consistently maintained A+ ratings.

Ravinder Ghanghas, general secretary of the Haryana Power Engineers’ Association, said no concrete steps had been taken towards listing the four companies so far.

He said the association was closely monitoring the proposal in view of the Centre’s letter and the state government’s assurance against privatisation following the strike.