The All India Power Engineers Federation (AIPEF) has strongly criticised the Haryana government's plan to establish a separate Agriculture Distribution Company (DISCOM), labelling it a backdoor attempt at privatising the power sector. The federation's federal executive has demanded the immediate withdrawal of the proposal.
Opposition to Electricity Amendment Bill 2025
AIPEF also voiced its opposition to the Electricity (Amendment) Bill, 2025, rejecting any provisions that permit privatisation and fragmentation of the power sector. The federation protested against granting parallel licences to private firms in Gurugram and Nuh.
Key Resolutions Adopted
VK Gupta, media advisor to AIPEF, stated that the federation meeting resolved to oppose multiple distribution licensees operating in the same area using the same network. The meeting also resolved to resist all measures that facilitate privatisation, cherry-picking of consumers, weakening of public utilities, and transfer of public assets to private interests. Additionally, it opposed policy initiatives in certain states to create separate Agriculture DISCOMs.
Haryana Government's Justification
The Haryana government has justified its decision to set up a separate Agriculture DISCOM, citing faster release of agricultural connections and reliable, uninterrupted power supply to farmers. However, Gupta argued that no convincing evidence has been provided to demonstrate how mere administrative bifurcation of existing distribution utilities will achieve these objectives. He noted that farmers currently receive electricity through dedicated feeder arrangements, so creating a new DISCOM offers no additional technical, operational, or consumer service advantage.
Alleged Hidden Agenda
Gupta alleged that the real objective of the proposed restructuring is to segregate the loss-making agricultural sector from profitable industrial, commercial, and domestic consumer categories, thereby creating conditions for privatising profitable distribution areas. He stated, "The agricultural sector receives substantial state subsidies exceeding Rs 5,400 crore annually. Separating agricultural consumers into an independent DISCOM will neither reduce subsidy requirements nor improve operational efficiency."
Parallel Licensing Concerns
Gupta added that parallel licensing in any area using existing state DISCOM infrastructure is a backdoor route to privatisation, whether in Haryana or elsewhere. He emphasised, "Private companies are not seeking licences for remote villages, agricultural areas, or loss-making regions. They are targeting only high-revenue industrial, commercial, and urban consumers, leaving public sector utilities to serve farmers, weaker sections, and rural consumers. Electricity distribution is an essential public service, not a business opportunity for cherry-picking profitable consumers."
Private Firm's Licence Application
A private firm has approached the Haryana Electricity Regulatory Commission (HERC) for a licence to distribute electricity in the revenue districts of Gurugram and Nuh. HERC has scheduled a public hearing on the petition for July 8 and has invited all stakeholders and the general public to participate.
Political Reaction
Former Haryana minister Prof Sampat Singh has urged HERC to outright reject the private firm's petition. He accused the BJP government of orchestrating a backdoor privatisation of the state's electricity distribution network.
