Private power firm's entry threatens Haryana discoms' revenue stream

Haryana's state-owned power distribution companies face mounting pressure as private power supplier Eleven Power prepares to enter the Gurugram and Nuh markets with an aggressive infrastructure push. The firm has committed to investing ₹4,717 crore, including the deployment of underground cable networks across Gurugram's segments.

The expansion poses a significant challenge to already financially stretched discoms in the state. Officials have warned that the loss of high-consumption consumers—typically the most profitable segment—could exacerbate existing revenue shortfalls and strain operational capacities. Haryana's distribution utilities have long grappled with mounting losses driven by subsidized tariffs and high technical and commercial losses.

Underground cabling infrastructure, a key feature of Eleven Power's proposed network, offers consumers reduced outage risks and modernized supply systems compared to traditional overhead distribution. This technical advantage could accelerate consumer migration from incumbent discoms to the private operator, particularly among commercial and industrial users seeking reliable power supply.

The entry of private players into Haryana's distribution segment reflects growing liberalization in India's electricity market, allowing consumers in select areas to choose their service providers. However, such competition threatens the financial viability of state discoms, which continue to serve as the primary supplier across most of the state.