The Haryana government on Friday directed the state electricity regulatory commission to reconsider and cancel the licence granted to a private company to distribute electricity in Gurugram and Nuh, following a three-day strike by power employees that caused widespread outages.
Chief Minister Nayab Singh Saini announced the decision at a joint press conference with union representatives, confirming that employees had called off the strike after the government assured them there would be no privatisation of state-owned power utilities.
The government invoked Section 108 of the Electricity Act, 2003, to direct the Haryana Electricity Regulatory Commission (HERC) to review its decision.
Eleven Power Private Limited was granted a 25-year parallel distribution licence for Gurugram and Nuh on October 19. The decision triggered protests from employees of state-owned power companies, disrupting electricity supplies from October 21.
“Our position is absolutely firm; there will be no privatisation of any kind,” Saini said, adding that employees would resume their duties immediately.
Unions welcome the decision
Amarjit Jakhar, president of the All-Haryana Power Corporation Workers’ Gurugram district union, welcomed the government’s move, saying it addressed the employees’ main demand. He added that another meeting with Energy Minister Anil Vij would take place on November 3.
Employee unions had argued that a private operator could attract profitable urban and industrial consumers while the state-owned Dakshin Haryana Bijli Vitran Nigam (DHBVN) continued serving rural and agricultural areas. They also raised concerns about the future of around 40,000 regular, contractual and outsourced employees.
Power outages disrupt daily life
The strike caused widespread disruptions across Gurugram and other parts of Haryana. Residents in several areas reported outages lasting more than 24 hours, with some localities experiencing interruptions exceeding 40 hours. Low voltage also affected water supplies in certain areas.
In its written directions, the Haryana Energy Department cited consumer interests, public interest and potential financial implications for the state. It also asked HERC not to implement parallel distribution licences anywhere in Haryana.
Eleven Power had planned to invest approximately ₹4,717 crore in developing its distribution network over five years across Gurugram, Manesar, Sohna and Nuh. The company said ₹91 crore had been infused as equity for Phase I, while banks had issued in-principal sanctions for ₹205 crore in debt.
HERC has been asked to reconsider its October 19 decision. The government has reiterated its assurance that state-owned electricity utilities will not be privatized.
