The federal executive of All India Power Engineers Federation (AIPEF) has demanded that the state government withdraw its proposal to set up a separate Agriculture Distribution Company (DISCOM) for the power sector. It also opposed the Electricity (Amendment) Bill, 2025 and rejected any provision permitting privatisation and fragmentation of the power sector. The federation protested the proposal to grant a parallel licence to a private firm in Gurugram and Nuh.
VK Gupta, media advisor to AIPEF, said a federation meeting resolved to oppose multiple distribution licensees in the same area using the same network. The meeting also resolved to oppose all provisions that facilitate privatisation, cherry-picking of consumers, weakening of public utilities, and transfer of public assets to private interests. In another resolution, it opposed policy initiatives in certain states to create separate Agriculture DISCOMs, he said.
Notably, the Haryana Government has decided to set up a separate Agriculture DISCOM, citing faster release of agricultural connections and reliable, uninterrupted power supply to farmers. Gupta, however, said no convincing evidence has been provided to show how mere administrative bifurcation of existing distribution utilities will achieve these objectives. He said farmers are presently receiving electricity through dedicated feeder arrangements. Therefore, creating a new DISCOM offers no additional technical, operational, or consumer service advantage.
Gupta alleged the real objective of the proposed restructuring is to segregate the loss-making agricultural sector from profitable industrial, commercial, and domestic consumer categories, creating conditions for privatisation of profitable distribution areas. “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,” he said.
Gupta added that parallel licensing in any area using existing state DISCOM infrastructure is a backdoor route to privatisation, whether in Haryana or elsewhere. “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,” he said.
It may be noted that a private firm has approached Haryana Electricity Regulatory Commission (HERC) for a licence to distribute electricity in the revenue districts of Gurugram and Nuh. HERC has decided to hold a public hearing on the petition on July 8 and has invited all stakeholders and the general public.
Former Haryana minister Prof Sampat Singh has also urged HERC to outright reject the private firm’s petition. He alleged the BJP government is orchestrating a backdoor privatisation of the state’s electricity distribution network.