Haryana Electricity Regulatory Commission (HERC) has granted Eleven Power Private Limited a 25-year parallel electricity distribution licence for Gurugram and Nuh, opening the state’s power-supply market to a private player for the first time. The decision could allow consumers in parts of the two districts to choose between suppliers, but the Haryana government has said it will challenge the order before the Appellate Tribunal for Electricity.
The HERC order, issued on Monday, cited delays in providing new connections and increasing sanctioned loads as a key reason for allowing a second distributor. Data submitted by the state-owned Dakshin Haryana Bijli Vitran Nigam (DHBVNL) showed that 1,08,590 applications for new meters and load increases were pending as of October 2025, according to the order.
If the licence survives review and receives the required approvals, Eleven Power will roll out its network in phases between 2026-27 and 2030-31. The company has committed to invest Rs 4,716.73 crore over five years. Of this, Rs 4,650.37 crore is earmarked for underground cabling and the construction of power substations. The approved plan also allocates Rs 304.37 crore to Nuh in the first phase.
HERC has directed Eleven Power to submit a migration protocol within 60 days. The protocol will set out how consumers can move between suppliers without disrupting electricity service or leaving unpaid dues. The company’s network is expected to be financed entirely through private equity and loans.
The decision has faced strong opposition from the state government, power utilities and employee unions. Haryana Energy Minister Anil Vij said on Monday that the government would approach the Appellate Tribunal, an autonomous body established under the Electricity Act, 2003. State utilities argued during the hearings that Gurugram contributes a significant share of their revenue and that losing commercial consumers could weaken the cross-subsidy system used to support subsidised electricity for farmers.
The utilities also alleged that the private company could select affluent urban areas while avoiding less commercially attractive pockets. Power employee unions have described the order as backdoor privatisation and raised concerns over state revenue and employment. Subhash Lamba, National Vice-President of the Electricity Employees Federation of India, said unions had secured permission for strikes from December 1 to 3 and could bring the action forward to October 22. He alleged that HERC had not adequately considered objections from employees, farmers and resident welfare associations.
The regulator has rejected the argument that Eleven Power’s lack of prior electricity distribution experience should prevent it from receiving the licence. HERC said consortium partners associated with the company had technical expertise in managing high-voltage networks.
Industrial associations and resident welfare associations in Gurugram have welcomed the proposed entry, citing recurring summer outages, expensive diesel-generator backup and delays in grievance resolution. Residents of housing societies along the Dwarka Expressway and in Badshahpur said a second supplier could give consumers an alternative when service quality falls short. The next step will be the government’s appeal and the regulatory review of the licence before implementation proceeds.
