Haryana’s power sector faces fresh privatisation concerns as HVPNL explores market listing | Chandigarh News


Haryana’s power sector faces fresh privatisation concerns as HVPNL explores market listing

Chandigarh: Barely weeks after a fierce backlash forced the Haryana govt to put the proposed entry of a private power distributor in Gurgaon and Nuh on hold, a fresh move to explore market-based fund-raising and monetisation of the state-owned Haryana Vidyut Prasaran Nigam Limited (HVPNL) has revived allegations that the BJP govt is pursuing privatisation of the power sector through alternative routes.The immediate trigger is an HVPNL tender inviting consultants to explore various modules of fund-raising and monetisation. Published on Oct 22, the tender has alarmed power engineers and employees, who fear that the exercise could eventually open a strategic public utility to private capital.The last date for submission of bids is Nov 23, and its opening date is scheduled for Dec 3.Baljit Beniwal, a Samyukt Sangharsh Morcha functionary, said the issue went beyond the HVPNL and concerned the future of public power infrastructure, employees and consumers. He demanded that govt immediately halt the proposed exercise and clarify whether it intended to dilute public ownership or management control.Beniwal said the Union power ministry, through an Oct 19 communication, pushed for expediting the stock-market listing of Haryana’s four power companies — Uttar Haryana Bijli Vitran Nigam Limited (UHBVN), Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL), Haryana Power Generation Corporation Limited (HPGCL) and HVPNL.V K Gupta, media adviser to the All India Power Engineers Federation (AIPEF), said states had been offered three options for their distribution companies – selling 51% equity to private entities while govt retained the debt burden; transferring 26% equity along with full management control; or listing the utilities on stock exchanges, subject to an ‘A’ credit rating to qualify for central financial assistance.The latest development has brought focus back onto govt’s earlier attempt to introduce private competition in electricity distribution.On Sept 1, power minister Anil Vij told the Haryana assembly that govt opposed a parallel distribution licence for Gurgaon and Nuh. However, on Oct 19, the Haryana Electricity Regulatory Commission (HERC) granted Eleven Power Private Limited a 25-year licence to operate alongside the DHBVNL. The company conveyed its acceptance on Oct 21.Following protests by power employees and a three-day agitation that disrupted supply, govt invoked Section 108(1) of the Electricity Act, 2003, on Oct 26, directing the HERC not to create or operationalise parallel distribution licences anywhere in Haryana. On Oct 28, the commission decided not to proceed further with the licence while govt directions remained in force.The two developments have strengthened opposition allegations that, although the parallel distribution proposal was stalled, govt has not abandoned its broader push for private participation in the power sector.“This govt runs on remote control which is in the hands of corporate friends or BJP leaders in Haryana and Delhi. We are fighting at all levels and stand by power employees,” said Singh.JJP functionary Dushyant Chautala was also critical of govt’s move. “If govt is really so concerned about financial issues then there are other fields as well,” said Dushyant.With a special assembly session scheduled this month, the opposition is being urged to make the issue a central plank of its intervention. The demand is for a categorical assurance against privatisation, protection of govt ownership and management control, and a transparent policy to strengthen the power utilities rather than monetise public assets.The question confronting govt is whether the HVPNL exercise is merely a fund-raising initiative or the first step towards a wider restructuring of Haryana’s publicly owned power sector.Verified timelineSept 1: Energy minister Anil Vij told the assembly govt opposed the parallel distribution licenceOct 19: HERC granted Eleven Power a 25-year licence for Gurgaon and NuhOct 21: Eleven Power conveyed its acceptance to HERCOct 22–23: HVPNL’s consultant tender was published on Oct 22 at 6 pm; the notice was reported on Oct 23Oct 26: Haryana govt issued directions under Section 108(1), opposing parallel distribution licences anywhere in the state.Oct 28: HERC decided not to proceed further with the Eleven Power licence while govt’s directions remained operativeNov 23: Deadline for HVPNL consultant bidsDec 3: Scheduled opening of bids



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