Karnataka: Cabinet decides to oppose Tata Power’s entry into distribution biz

Bengaluru: The state government has directed all electricity supply companies (Escoms) to file objections before the power sector regulator, the Karnataka Electricity Regulatory Commission (KERC) opposing the entry of Tata Power into the electricity distribution business in the state.

Chief Minister DK Shivakumar, briefing the media on the Cabinet decisions, said the government was opposed to private sector participation in the distribution business. Tata Power has already applied for licences with the KERC, and escoms will now file their objections opposing a license to the Tatas.

He blamed the BJP for changing the policy facilitating private sector participation. “I would have conveyed our stand if they had come to me, but they have filed (for licnese) before the KERC,” the CM said.


The KERC is expected to take up the Tata Power application for hearing in a day or two, and the Escoms will convey that the government has not “concurred” with the request.

Tata Power, which already handles distribution in Mumbai, Delhi, Odisha and Rajasthan, has applied for five licenses in Karnataka.

Each licence covers a minimum of three districts. The company, which plans to handle power distribution in almost half of Karnataka, however, has not included Bengaluru, the largest load centre in the state, in its request for licence. The company has been managing distributions either through subsidiaries or through public private partnership (PPP) basis.

Shivakumar, addressing the power sector employees after receiving felicitation from their associations on Monday, said he was disappointed with the employees’ unions that they did not protest enough or raise their voice when the NDA regime introduced the law in 2003.