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Haryana Power Workers Warn State Move to Cancel Private Licence May Face Legal Hurdles

Reported by Harshdeep Singh (Fact-Checker) · The Hindu - National ·

Unconfirmed — Reported by one source so far

Reported by one source so far

Worth knowing
Haryana Power Workers Warn State Move to Cancel Private Licence May Face Legal HurdlesPhoto: Wikimedia Commons

Procedural Concerns

Power employees in Haryana are worried that the state government's order to scrap a private firm's power distribution permit contains legal gaps that could fail in court. The joint front of electricity workers points out that the state directives were cleared only by Chief Minister Nayab Saini instead of the full Council of Ministers. Former Finance Minister Sampat Singh also raised questions about whether the state business rules required a formal cabinet decision for this step. Workers fear these missing steps give the company solid ground to approach the electricity appellate tribunal.

Action and Reaction

On October 26, the Energy Department Secretary instructed the Haryana Electricity Regulatory Commission to stop any parallel power distribution licence in the state after the Chief Minister gave an assurance to protesting workers. Acting on this instruction, the regulatory body cancelled the 25-year permit issued to Eleven Power Private Limited for Gurugram and Nuh on October 28. Dakshin Haryana Bijli Vitran Nigam filed a caveat before the appellate tribunal on October 28, expecting the firm to challenge the cancellation. Eleven Power has already signaled plans to pursue legal options. A member of the employee joint front claimed some leaders suspect a hidden design to help the private company since full cabinet clearance was skipped despite earlier demands during talks.

Context

State electricity boards and regulatory commissions manage power supply and infrastructure across regions, while private firms sometimes enter the market to distribute electricity in specific zones. Legal disputes between utility workers, private operators, and state bodies often center around administrative rules and due process. Employee unions frequently oppose private entry into the power sector over job security and public asset concerns.

ExplainerWhy this matters

What Happened

The Haryana government ordered the state power regulator to scrap a newly granted parallel power distribution licence issued to a private company following employee protests. Workers and political leaders point out that this order relied solely on the Chief Minister's approval rather than a formal vote by the state Council of Ministers.

Why It Matters

Administrative actions taken by state governments must strictly follow established rules of business to survive legal challenges. If a court or tribunal finds that a major policy reversal lacked proper cabinet backing or denied the affected company a fair hearing, the cancellation order could be overturned, restoring the private firm's right to operate.

What Happens Next

The private company is expected to approach the Appellate Tribunal for Electricity to challenge the cancellation. Meanwhile, employee unions plan to meet and urge the Chief Minister to secure formal cabinet endorsement during a scheduled meeting.

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