Employees flag procedural gaps in Haryana move to cancel power licence

Haryana power employees staging a protest against the decision to grant the licence to a private firm.

More than a week after power employees called off their strike against the grant of a parallel power distribution licence to a private firm in Haryana, a section of the employees’ joint front has raised concerns that a procedural lacuna in the government’s directions seeking cancellation of the licence could allow the company to challenge the move before the appellate tribunal.

The employees fear that the Haryana government’s directions to the Haryana Electricity Regulatory Commission (HERC) under Section 108(1) of the Electricity Act, 2003, may not withstand legal scrutiny as they were approved only by Chief Minister Nayab Saini and not by the Council of Ministers.

Indian National Lok Dal patron and former Finance Minister Sampat Singh has also sought clarity on whether the directions under Section 108 were backed by a formal decision of the Council of Ministers under the government’s rules of business.

“The fact that HERC did not provide a hearing to Eleven Power Private Limited before cancelling the parallel licence and the government’s decision has not been approved by the Council of Ministers are enough grounds for the firm to move the Appellate Tribunal for Electricity (APTEL). Anticipating this, I have filed a caveat,” he said in a statement.

Following Mr. Saini’s assurance to the striking employees, the Energy Department Secretary, on October 26, directed the HERC “not to create, operationalise or effectuate a parallel distribution licence anywhere in the State of Haryana”. The letter stated that the directions had been issued with the Chief Minister’s approval.

Acting on the directions, the HERC cancelled the 25-year parallel licence granted to Eleven Power for Gurugram and Nuh on October 28. The Commission said it would not proceed further in the matter as long as the government’s directions remained operative.

Eleven Power has since indicated that it would pursue legal remedies. Meanwhile, Dakshin Haryana Bijli Vitran Nigam filed a caveat before the APTEL on October 28, anticipating a legal challenge.

A member of the joint front said its representatives, who participated in the October 23 negotiations with Mr. Saini and Energy Minister Anil Vij, had demanded that the decision be approved by the Council of Ministers. However, they were assured that the Chief Minister’s directions would suffice. Some members now suspect a “conspiracy” to benefit the private firm, the member claimed.

The joint front is likely to meet soon and consider writing to the Chief Minister, seeking Cabinet approval for the decision at its meeting on November 3.

Citing the Karnataka Cabinet’s decision against private participation in power distribution, which led Tata Power to withdraw its application in July this year, the joint front member said Haryana should also secure Cabinet approval for its decision.

Mr. Vij remained unavailable for comment despite repeated attempts to contact him.