A Delhi-based private company has formally applied to the Haryana Electricity Regulatory Commission (HERC) for a parallel electricity distribution licence covering the Gurugram and Nuh revenue districts — a move that could, if granted, introduce private competition into a sector that has long been the exclusive preserve of state utilities in Haryana.

Eleven Power Private Limited, a subsidiary of the diversified Eleven Group (formerly SAS Group) founded by entrepreneur Mr. Sunil Sachdeva, filed a petition before HERC under Sections 14 and 15 of the Electricity Act, 2003. The Commission took up the matter for hearing on May 26, 2026, and issued an Interim Order the same day, directing the company to furnish a range of additional documents and impleading state utilities as respondents.

What Exactly Is Being Sought?

Eleven Power is seeking a 25-year parallel distribution licence for the entire Gurugram and Nuh revenue districts — one of India's most economically dynamic regions, encompassing Gurugram Municipal Corporation, Manesar Municipal Corporation, Municipal Council of Sohna, Pataudi Mandi, Farrukh Nagar, and several municipal committees in Nuh district.

The company proposes a capital expenditure of approximately Rs. 4,717 crore, financed through equity of Rs. 1,415 crore and debt of Rs. 3,302 crore, to build and operate its own distribution network alongside the existing state utility.

Who Is Eleven Power?

Eleven Power is backed by the Eleven Group, a conglomerate with interests spanning healthcare (Medanta hospitals), financial services (SV Creditline), infrastructure, and clean energy. The group claims experience managing over 19 lakh retail customers through its financial services arm, and serving over 3 million patients annually through Medanta.

The company has also forged a strategic consortium with three specialised partners:

• Vision India Services — for day-to-day grid operations and retail distribution management
• HEC Infra Projects Limited — for high-voltage backbone construction and grid modernisation, including substations up to 220 KV
• Advait Energy Transitions Limited (AETL) — an EPC heavyweight with a track record of large-scale power infrastructure rollouts across multiple states under schemes such as RDSS

The leadership team includes veterans from major DISCOMs, including individuals who previously served at TPCODL, CESU, HVPNL, and Tata Power Group.

Is Power Distribution Going Private?

Not quite — at least not yet, and not in the way the question implies.

India's Electricity Act, 2003 already permits multiple distribution licensees in the same area, a provision that has been used sparingly but is legally well-established. The sixth proviso to Section 14 of the Act explicitly states that no applicant who meets all eligibility criteria — capital adequacy, creditworthiness, and code of conduct — can be refused a licence solely because a licensee already exists in that area.

Consumers would then, in principle, have a choice of supplier — a concept that exists in some other Indian states and in several international markets. Eleven Power's petition leans heavily on this framework, arguing that Gurugram, Manesar, and Nuh are witnessing rapid industrial, commercial, and residential growth, and that consumers currently have no choice of electricity supplier within the licensed supply framework.

What Happens to DHBVNL?

This is where the matter gets complicated, and where HERC's Interim Order reveals the Commission's caution.

Dakshin Haryana Bijli Vitran Nigam (DHBVNL) is currently the sole distribution licensee for this area, under which power procurement is handled by HPPC through UHBVNL. The Commission noted in its order that the entry of a parallel licensee could have serious implications:

• Cross-subsidy disruption: DHBVNL currently uses higher tariffs from commercial and industrial consumers to subsidise agricultural and rural consumers. A private competitor would likely target the more lucrative commercial and industrial segment — a practice the Commission explicitly flagged as potential "cherry picking" — potentially eroding DHBVNL's revenue base.
• Grid and transmission impact: HVPNL, the State Transmission Utility, would need to accommodate the new licensee's network access and grid scheduling requirements. HERC has directed Eleven Power to obtain a No Objection Certificate from HVPNL on transmission capacity and General Network Access.
• Financial viability of the incumbent: A thinner consumer base could weaken DHBVNL's financials at a time when state DISCOMs across India are already under significant stress.

Recognising these concerns, HERC has impleaded DHBVNL, UHBVNL, and HVPNL as necessary respondents in the proceedings, directing them to file replies within one month.

What Did HERC's Interim Order Say?

The Commission's order, passed the very day of the hearing, signals that HERC is proceeding with measured scrutiny. Among the key directions to Eleven Power:

1. Justify the financial valuation basis: The Commission raised eyebrows at the petitioner's use of the market value of the holding company (SAS Fininvest LLP, at Rs. 4,085 crore) to claim capital adequacy, given that its book value is only Rs. 94.95 crore and the petitioner company was incorporated as recently as June 2025 with a paid-up capital of just Rs. 1 crore. A comprehensive debt-equity capitalisation plan with a clear funding roadmap has been demanded.
2. Prove universal service commitment: An affidavit is required confirming that Eleven Power will supply electricity to all consumers on a non-discriminatory basis, discharging Universal Service Obligations under Section 43 of the Act — not just serve profitable areas.
3. Submit an anti-cherry-picking plan: A detailed implementation plan must demonstrate that phased network development will not result in selective coverage of premium geographies.
4. Define a Migration Protocol: The company must specify how consumers would switch between DHBVNL and Eleven Power — covering procedures, timelines, settlement of dues, and consumer consent mechanisms.
5. Obtain mandatory clearances: NoCs from HVPNL and the Ministry of Defence, and publication of the application in English and Hindi newspapers with wide circulation in both districts.

The next date of hearing is July 8, 2026, and HERC has directed that it be conducted as a public hearing, inviting participation from all stakeholders.

The Public Hearing: Who Can Participate, and How

HERC's direction that the next hearing on July 8 be conducted as a public hearing is not merely procedural. Under Section 15(5) of the Electricity Act, 2003, the Commission is required to invite objections and suggestions from the public before granting a distribution licence. A public notice will be published in at least two daily newspapers — one in English, one in Hindi — with wide circulation across Haryana.

This opens a formal, legal window for any citizen, consumer group, industrial association, trade body, or employee organisation to place their views on record before the Commission. Participation does not require legal representation; written objections submitted ahead of the hearing date, or oral representations made on the day, are both permissible.

HERC has also directed that Eleven Power's complete petition and annexures be hosted on the Commission's website, and that physical copies be made available at the petitioner's offices, the Commission's office in Panchkula, the Electrical Inspector's office, and the offices of the concerned Municipal Corporations. Any person or organisation wishing to object should watch for the public notice in the press, and may also approach the HERC registry directly.

Why DHBVNL's Employee Unions Should — and Almost Certainly Will — Step In

If any organised group has the most direct stake in this proceeding, it is the employees of DHBVNL and their unions.

The fear is understandable. A parallel licensee targeting Gurugram and Manesar — regions that include some of Haryana's highest-revenue industrial and commercial consumers — could, over time, hollow out DHBVNL's revenue base. A financially weakened DHBVNL means pressure on headcount, wages, and service conditions. It is a trajectory that power sector workers in states like Odisha and Delhi have watched with anxiety when private players entered the distribution space.

Employee unions of DHBVNL — and more broadly, federations representing power sector workers in Haryana — have both the standing and the legitimate interest to appear before HERC at the July 8 public hearing. They can raise specific concerns including:

• The cross-subsidy burden: If Eleven Power's network is built selectively in high-revenue urban and industrial pockets, DHBVNL will be left disproportionately serving agricultural feeders, rural areas, and low-tariff consumers — the segments that are structurally loss-making.
• Job security and service conditions: Sustained erosion of DHBVNL's consumer base and revenues could lead to rationalisation pressure on the public utility. Unions can seek explicit assurances and Commission directives to safeguard against this.
• The cherry-picking question: HERC has already asked Eleven Power to submit an anti-cherry-picking plan. Unions can demand this be a hard condition of any licence grant, with enforceable penalties and regular compliance reviews.
• Stranded asset risk: DHBVNL has invested in distribution infrastructure across Gurugram and Nuh over decades. If a parallel licensee draws away premium consumers, the public utility could be left with stranded assets — costs already sunk into a network serving a diminished load.

Beyond unions, consumer organisations — particularly residential welfare associations (RWAs) in Gurugram and Manesar — should also weigh in. The question of whether a parallel licensee will actually deliver lower tariffs or better service, or will simply cream off commercial accounts while leaving household consumers on DHBVNL, affects millions of ordinary residents.

Similarly, industry associations such as chambers of commerce operating in the Manesar industrial belt may want to articulate their expectations: reliable power, competitive tariffs, and clear switchover procedures — rather than a prolonged period of regulatory uncertainty.

The Broader Stakeholder Map

The proceedings are shaping up to involve a wide cast of parties beyond just the petitioner and the Commission:

• DHBVNL will file a formal reply contesting — or at minimum seeking conditions on — the licence grant. Its arguments are likely to focus on cross-subsidy sustainability, the financial viability of the incumbent, and the adequacy of Eleven Power's financial backing.
• UHBVNL and HVPNL will weigh in on grid stability, transmission access, and the technical feasibility of accommodating a new distribution licensee in a zone already served by existing infrastructure.
• Employee unions of DHBVNL (and possibly UHBVNL) are expected to file objections, as their counterparts have done in every major parallel licensing proceeding in India.
• Consumer advocacy groups and industrial bodies from Gurugram and Nuh may use the public hearing to articulate what they actually want from a new licensee — and hold Eleven Power to those expectations on record.

The Bigger Picture

India has been pushing for competition in electricity distribution for years. The Electricity (Amendment) Bill, debated in Parliament in various iterations, seeks to institutionalise consumer choice more formally. Meanwhile, a handful of parallel licences have been granted in other states — most notably in Odisha and Mumbai — with mixed results.

Gurugram, which hosts some of the country's most power-hungry industrial parks, data centres, and commercial establishments, could be a test case for whether competition in distribution can deliver tangible benefits in a high-growth urban corridor.

Whether Haryana's consumers — residential and industrial alike — will eventually get to choose their electricity company is a question that July's public hearing will begin, but almost certainly not finish, answering.

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