Overview
- Tata Power told the Karnataka Electricity Regulatory Commission it was withdrawing its May application for a licence to run parallel electricity distribution in 19 districts and said it will file a written memo explaining the decision, a move reported during the KERC hearing on Friday.
- The Karnataka Cabinet had directed state-run distribution companies to formally oppose private entry and file individual objections with KERC, and those Escoms had already lodged a joint petition challenging Tata Power’s compliance with the law.
- Bescom and other utilities argued Tata Power lacked its own transmission and distribution network, would rely on existing Escom infrastructure, and could not meet the Electricity Act, 2003 requirement to have infrastructure in place before starting operations.
- Employee unions, licensed contractors and consumer groups protested the bid, saying private entry could shift profitable urban and industrial customers away from public utilities, threaten jobs, and put subsidised schemes for farmers and low‑use households at risk.
- KERC is awaiting Tata Power’s memo and will process the Escoms’ objections before deciding next steps, a result that will test how the regulator applies the Electricity Act’s parallel‑distribution rules against strong state political resistance.