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					</table>The Haryana Electricity Regulatory Commission (<a href="https://herc.org.in/" target="_blank" rel="noopener">HERC</a>) has granted a parallel distribution license to operate in the Gurugram and Nuh districts of Haryana, providing consumers with an alternative electricity supplier.
The distribution license will be valid for 25 years.
The Commission said its decision to allow a parallel distribution license considered the substantial pendency of consumer grievances and applications for new electricity connections and load enhancements.
Background
Eleven Power, a subsidiary of SAS Fininvest, approached the Commission seeking a distribution license to establish a renewable energy-focused, technology-driven utility serving electricity consumers in the Gurugram and Nuh districts.
Eleven Power proposed procuring approximately 80% of its electricity from renewable sources, including firm and dispatchable renewable energy and battery storage-backed arrangements, with the remaining 20% from thermal sources.
The company argued that the Electricity Act permits multiple distribution licensees to operate in the same area of supply, provided applicants meet the prescribed eligibility criteria relating to minimum area of supply, capital adequacy, creditworthiness, and code of conduct.
Eleven Power proposed a total capital investment of ₹47.17 billion (~$497.71 million) for its licensed area. The company stated that its promoter, SAS Fininvest, had a net worth exceeding 30% of the proposed capital investment, equivalent to approximately ₹14.15 billion (~$149.30 million).
The company also highlighted its consortium partners&#8217; power-sector experience to demonstrate its technical and managerial capabilities. The consortium comprises Advait Energy Transitions, Vision India Services and HEC Infra Projects.
DHBVNL&#8217;s Objections
Dakshin Haryana Bijli Vitran Nigam (DHBVNL) opposed granting the parallel distribution license, arguing that it could significantly affect the existing consumer mix, tariff framework, power procurement planning, infrastructure utilization, cross-subsidy structure, and the financial sustainability of the incumbent distribution utilities.
It also argued that another licensee&#8217;s entry could affect the existing DISCOMs&#8217; ability to continue meeting their statutory obligations to all consumer categories.
DHBVNL contested Eleven Power&#8217;s interpretation that a municipal committee or municipal council satisfies the minimum area-of-supply requirement in Nuh.
It also questioned the company&#8217;s lack of operational experience in the electricity distribution sector. It sought disclosures regarding its existing borrowings, debt obligations, group liabilities, ongoing infrastructure commitments, committed capital expenditure, contingent liabilities, guarantees, and financial undertakings to assess its financial capacity.
DHBVNL argued that Eleven Power had failed to adequately establish its ability to meet universal service obligations and demonstrate the infrastructure readiness required to operate a power distribution business.
It alleged that Eleven Power&#8217;s proposed network would effectively &#8220;cherry-pick&#8221; high-revenue consumer areas without adequately demonstrating how it would serve rural, agricultural, low-density, and other consumer categories.
DHBVNL also argued that parallel distribution infrastructure could affect its existing power procurement commitments and resource adequacy, potentially resulting in stranded costs and impacting consumer tariffs.
Commission&#8217;s Analysis
HERC rejected the contention that Eleven Power&#8217;s proposed phased development of its distribution network was inconsistent with the universal service obligation.
The Commission noted that the rollout was not restricted to commercially remunerative areas and included Nuh from the first phase. Eleven Power proposed earmarking ₹3.04 billion (~$32.07 million) for Nuh, representing approximately 6.5% of its total proposed capital expenditure.
After analyzing the petitioner’s and respondent’s arguments, HERC concluded that Eleven Power had demonstrated the requisite capital adequacy and creditworthiness, proposed the minimum area of supply under the applicable statutory framework, and satisfied the code-of-conduct requirements.
The Commission, however, stipulated that Eleven Power&#8217;s distribution license would be subject to strict compliance with the notified pilot project belt architecture. All new connections released within notified  sectors must conform to the prescribed 220/33/0.4 kV configuration.
For existing consumers migrating to Eleven Power, the Commission clarified that consumers currently receiving supply at 11 kV would not be required to change their existing supply voltage solely because of the migration.
Based on its findings, HERC granted Eleven Power a parallel distribution license for 25 years covering the Gurugram and Nuh revenue districts.
The Commission also highlighted the large number of pending applications for new connections and load additions with Haryana&#8217;s incumbent DISCOMs, necessitating a parallel distribution architecture.
As of September 30, 2025, Uttar Haryana Bijli Vitran Nigam (UHBVNL) had 20,603 applications involving 770.407 MW pending. DHBVNL had 108,590 applications involving 1,642.542 MW pending as of October 1, 2025.
The aggregate pending load across the two DISCOMs stood at 2,412.949 MW, compared with 2,403.862 MW as of April 1, 2025.
HERC observed that the timely release of electricity connections is an essential component of a distribution licensee&#8217;s statutory obligations and directly affects consumer satisfaction while also facilitating higher revenue from electricity sales.
The Commission stated that the statutory framework for parallel distribution is intended to provide consumers with a choice and promote competition in the distribution sector.
However, HERC clarified that granting a parallel distribution license for Gurugram and Nuh must not be treated as a precedent. Any future applications for parallel distribution licenses will be considered independently on merits.
HERC directed Eleven Power to file a petition seeking approval of its consumer migration protocol within 60 days of the license grant.
Last year, the Ministry of Power <a href="https://www.mercomindia.com/government-asserts-proposed-reforms-will-cut-cost-of-electricity-supply?utm_source=chatgpt.com" target="_blank" rel="noopener">asserted</a> that government-owned DISCOMs will continue to operate alongside private licensees in a regulated, level-playing environment, citing the Electricity (Amendment) Bill, 2025.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

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