Privatisation of power distribution in Gurgaon yet to become a reality

The proposal to privatise power distribution in Gurgaon has been mooted several times, but could not materialise due to various reasons.

The proposal to privatise power distribution in Gurgaon has been mooted several times, but could not materialise due to various reasons, including opposition from some quarters.

Many residential societies in Gurgaon have to depend on diesel-guzzling generator sets for backup during long power cuts. (Parveen Kumar/HT Photo)

In 2013, two private companies, Essar Projects and India Powers, had applied to the Haryana electricity regulatory commission (HERC) for grant of distribution licence to supply power in the municipal areas of Gurgaon for 25 years. The HERC had issued a public notice inviting objections from public, but the applications were rejected. The two companies then approached the Appellate tribunal for electricity (Aptel) and the matter is pending there, said DHBVN managing director Arun Kumar Verma. The same year, the All India Power Engineers’ Federation too opposed the proposal for privatisation of electricity distribution in different states, stating it to be a bailout package.

In 2013, an HT-C fore survey had recorded 61% of the respondents feeling the need for power distribution in Gurgaon to be privatised on the lines of Delhi. However, official sources said since Gurgaon alone counts for 45% of DHBVN’s total revenue, privatisation will have serious financial implications for the discom.

Haryana’s electricity department had also planned in 2011 to privatise power distribution in colonies developed by builders in Gurgaon. However, that too didn’t materialise as developers were required to construct their own powerhouses or provide land to DHBVN to develop infrastructure, at a cost. Under the present system, DHBVN supplies connections to building societies and gated communities in bulk. The developer or RWAs are responsible for further distribution and collecting the bills.