After facing opposition in Karnataka from Escoms, power sector employees and consumers, Tata Power Company Limited (TPCL) has withdrawn its application for parallel supply of distribution of power on Friday.
Speaking to The Hindu, a senior official from Karnataka Electricity Regulatory Commission (KERC), said, “In today’s (Friday) hearing held at the commission, TPCL has withdrawn their application orally and will submit a memo regarding the same before us.”
Application and protest
In May 2026, TPCL had applied for licence with KERC for parallel distribution of electricity in 19 districts across the State. Though Tata doesn’t have its transmission and distribution network in Karnataka, it had justified its move by stating that it was successfully operating primary electricity distribution business serving millions of consumers in other States including Odisha, Maharashtra, Delhi and Rajasthan.
However, several unions including Federation of Karnataka Electricity Board Employees’ Union and Associations, Karnataka Electricity Consumers Association, Karnataka State Licensed Electrical Contractors Association (KSLCA) and Karnataka Power Transmission Corporation Employees’ Unions and Association had staged protest against the entry of private players in the distribution of electricity.
Joint objections petition
Similarly, in June 2026, all the Escoms had also filed joint “objection petition” with KERC against TPCL. In their petition, Bescom had raised some important objections pointing to its legal noncompliance, network deficiency, consumer protection risks and competition concerns, among others.
In its petition, opposing the TPCL’s application, the Bescom had argued that: “According to the Electricity Act 2003, Tata must have their own infrastructure in place and it is not possible for them to build it in 30 days after the approval of licence.”
The petition also stated that TPCL wants to enter profitable markets without bearing the full obligations of a distribution licencee and rely on Bescom’s infrastructure instead of building its own. The power utility argued if the licence is approved, then it violates the Electricity Act, 2003 in letter and spirit.
Recently, Chief Minister D. K. Shivakumar and Energy Minister K. J. George had also told the employees of Energy Department that there was no proposal of privatisation for power sector. Mr. Shivakumar had criticised the erstwhile Bhartiya Janata Party led Central government that brought the Electricity Act 2003, aiming to dismantle State-run monopolies and allowing private players in energy sector.
Individual objections
In the State Cabinet meeting held on July 2, other Escom officials were also directed to file individual objections against Tata. Mr. Shivakumar had said, “The application for parallel power distribution has been made before the KERC by the TPCL. The government will represent its objections through the Escoms, which have been asked to file individual objections before the KERC.”
Meanwhile, K. Balram, President, KPTCL Employees Union, said, “I also attended the hearing and TPCL informed the authorities about withdrawing their application. KERC has asked for clarification and reasons behind withdrawal of application. At this juncture, I am grateful to the State government, Energy Department officials who supported us. As employees, we promise to provide better services in the interest of people.”
C. Ramesh, president, KSLCA, said, “By supporting us, the government has been able to save jobs of over 60,000 contractors and the labourers who work with us. We will strive to provide better service even if it is for a single house in a remote village.”
Published – July 03, 2026 06:52 pm IST
