Haryana Government Halts Parallel Power Distribution Licence in Gurugram, Nuh
The Haryana Government has invoked Section 108 of the Electricity Act, 2003, to block parallel power distribution licences across the state, halting the implementation of Eleven Power's 25-year licence for Gurugram and Nuh.
October 30, 2026. By Mrinmoy Dey
The state government issued the directive under Section 108(1) of the Electricity Act, 2003, on October 26, 2026, citing public interest concerns, potential financial implications for state revenues and apprehensions among consumers, farmers and employees of state-owned power utilities. The directive was approved by the Chief Minister of Haryana.
HERC had granted a parallel distribution licence to Eleven Power on October 19, 2026, under Sections 14 and 15 of the Electricity Act, 2003, following its petition registered as HERC/Petition No. 30 of 2026. EPPL accepted the licence conditions on October 21, 2026, and indicated that it would proceed with implementation.
The licence faced opposition from state-owned distribution companies Dakshin Haryana Bijli Vitran Nigam (DHBVNL) and Uttar Haryana Bijli Vitran Nigam (UHBVNL). The utilities had raised concerns over compliance with statutory requirements relating to the minimum area of supply, capital adequacy, creditworthiness and technical capabilities.
They also flagged the possibility of selective acquisition of high-revenue commercial and industrial consumers, potentially affecting cross-subsidies, existing power purchase commitments and the financial position of incumbent distribution licensees. Other concerns included stranded costs and duplication of distribution infrastructure.
Following the state government's directive, EPPL approached HERC seeking advance intimation and a formal opportunity for a hearing. However, the Commission rejected the request, noting that Section 108(2) makes the state government's decision on matters of policy and public interest final.
In its order dated October 28, 2026, the HERC bench comprising Officiating Chairman Mukesh Garg and Member Shiv Kumar decided not to proceed further with the matter for as long as the state government's directive remains in force.
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