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Business
Centre pushes private power distributors, but Haryana stalls rollout
✍️ The Indian Express
🗓 30 Oct 2026, 01:16 AM
👁 14
The central government is urging more private players in electricity distribution, yet Haryana has signalled it will not open its market to them.
New Delhi has been actively promoting the entry of private firms into the electricity distribution sector, arguing that competition will improve supply reliability and reduce tariffs. The policy push includes incentives for investors and a framework that allows multiple distributors to operate in a single state.
Haryana, however, has taken a contrary stance. The state government has communicated that it will not invite additional private distributors while the existing public utility continues to manage the grid. Officials cited concerns over regulatory coordination, potential disruption to consumers, and the need to first strengthen the performance of the current distributor.
Industry analysts note that Haryana's reluctance could slow the broader national agenda of diversifying power distribution. The state’s decision also raises questions about the balance of power between the centre and states in implementing sector reforms.
The central ministry has indicated that it will continue discussions with Haryana, emphasizing that private participation is a key component of the government's long‑term energy strategy. No timeline has been set for a possible policy reversal.
Meanwhile, consumer groups in the state have welcomed the decision, fearing that multiple distributors could lead to fragmented billing and service standards. The debate is expected to continue as the government seeks to align state-level policies with its national objectives.
Haryana, however, has taken a contrary stance. The state government has communicated that it will not invite additional private distributors while the existing public utility continues to manage the grid. Officials cited concerns over regulatory coordination, potential disruption to consumers, and the need to first strengthen the performance of the current distributor.
Industry analysts note that Haryana's reluctance could slow the broader national agenda of diversifying power distribution. The state’s decision also raises questions about the balance of power between the centre and states in implementing sector reforms.
The central ministry has indicated that it will continue discussions with Haryana, emphasizing that private participation is a key component of the government's long‑term energy strategy. No timeline has been set for a possible policy reversal.
Meanwhile, consumer groups in the state have welcomed the decision, fearing that multiple distributors could lead to fragmented billing and service standards. The debate is expected to continue as the government seeks to align state-level policies with its national objectives.