Fresh Attempt to Privatise Power Distribution in Uttar Pradesh through the Backdoor to be opposed by Power Employees, Farmers and Consumers
Proposed grant of Parallel Distribution Licence to Adani Group companies for a major data centre in Noida is a matter of serious concern — it will adversely affect the financial health of PVVNL
Fresh Attempt to Privatise Power Distribution in Uttar Pradesh through the Backdoor to be opposed by Power Employees, Farmers and Consumers
Proposed grant of Parallel Distribution Licence to Adani Group companies for a major data centre in Noida is a matter of serious concern — it will adversely affect the financial health of PVVNL
New Delhi, Aug 12
The Vidyut karmchari Sanyukt Sangharsh Samiti, Uttar Pradesh, has strongly opposed the application submitted by Adani Energy Solutions Step-Eleven Limited and Adani Energy Solutions Limited for a Parallel Distribution Licence for supply and distribution of electricity to a data centre park in Noida.
The Sangharsh Samiti said that this is a serious attempt to restart the process of privatisation of electricity distribution in Uttar Pradesh through the backdoor, and power employees, farmers and consumers will jointly and strongly oppose this move.
The Sangharsh Samiti said that instead of strengthening the public electricity distribution system in Uttar Pradesh, if large and high-revenue consumers—particularly high electricity-consuming establishments such as data centres—are handed over to private companies through Parallel Distribution Licences, it will directly cause financial loss to the existing public distribution companies.
If large and profitable consumers are taken away from Paschimanchal Vidyut Vitran Nigam Limited (PVVNL), one of the highest-revenue distribution companies in Uttar Pradesh, its revenue base will be seriously affected and its financial position will inevitably weaken. At the same time, private companies will get the opportunity to selectively target profitable consumers while using the existing public electricity network.
The Vidyut karmchari Sanyukt Sangharsh Samiti,UP said that the Adani Group is beginning its entry through a Parallel Distribution Licence in the Paschimanchal region, but the issue is not confined merely to one data centre in Noida. The larger objective appears to be to create a route for the entry of private companies into other parts of Uttar Pradesh, including Madhyanchal, and ultimately into the entire state.
The Sangharsh Samiti made it clear that granting a Parallel Licence should not be viewed as an isolated experiment limited to a particular consumer or data centre. Once such licences are permitted, the door will be opened for large industrial, commercial and other profitable consumers to be gradually separated from public distribution companies and transferred to private entities. This will amount to gradual privatisation through the backdoor.
The Sangharsh Samiti further said that it has come to its notice that IntelliSmart, a company operating in the smart metering sector, has been acquired by the Adani Group, while the acquisition of Polaris is also reportedly being pursued. The Committee is closely examining the entire development.
The Sangharsh Samiti said that if ownership of smart metering companies is integrated with large private power businesses and, simultaneously, Parallel Distribution Licences are granted to such private entities, a serious question arises: Is the smart prepaid meter being prepared as a fundamental precondition for future privatisation of electricity distribution?
The Sangharsh Samiti said that smart prepaid metering involves the collection and management of enormous amounts of consumer and electricity-distribution data, as well as billing and revenue-collection systems. There is therefore a legitimate concern that these critical functions could increasingly come under the influence of private companies. The entire matter requires a transparent and public examination.
The Vidyut karmchari Sanyukt Sangharsh Samiti,UP said that after private companies faced strong opposition and difficulties in securing Parallel Distribution Licences in Karnataka and Haryana, an attempt is now being made to enter the electricity distribution sector in Uttar Pradesh through the backdoor.
The Sangharsh Samiti declared that the power employees of Uttar Pradesh will not allow this attempt to succeed under any circumstances.
Whether privatisation is attempted directly or through Parallel Distribution Licences, franchise arrangements, parallel supply or distribution, or under any other name, the Sangharsh Samiti will strongly oppose it. The Sangharsh Samiti has also raised serious questions regarding the functioning of the Uttar Pradesh Electricity Regulatory Commission.
The Sangharsh Samiti said that, according to the publicly available information, the concerned company submitted its application for a Parallel Distribution Licence on 5 August 2026, but the application was made publicly available on the Commission’s website only subsequently, reportedly just two days before the advertisement was issued. The public notice issued today has invited suggestions, comments and objections from the general public and other concerned parties.
The Sangharsh Samiti said that advancing such an important process relating to a public utility in such haste, with limited public disclosure, raises serious questions.
Is the door being quietly opened for the privatisation of large and profitable consumers? If the entire process is transparent, why was information relating to each stage—from submission of the application to its public disclosure—not made available to all stakeholders in a timely manner?
The Sangharsh Samiti has demanded that the Regulatory Commission make public the complete application and all supporting documents, the proposed area of operation, details of consumers, conditions for use of the existing network, likely revenue impact and the financial impact on the government distribution company.
The Vidyut karmchari Sanyukt Sangharsh Samiti, Uttar Pradesh, has made it clear that the struggle will not remain confined to issuing statements.
The Sangharsh Samiti will oppose this move at every democratic forum—from the streets to the Uttar Pradesh Electricity Regulatory Commission.
The Sangharsh Samiti said that the electricity system of Uttar Pradesh cannot be allowed to become a source of profit for private companies. Serving crores of consumers, ensuring electricity supply to farmers, fulfilling social obligations and providing electricity across all areas of the state are the responsibilities of public distribution companies.
Separating only the profitable consumers and handing them over to private companies will promote a policy of “Private profit, public burden.”
The Vidyut karmchari Sanyukt Sangharsh Samiti,UP has demanded that the UPPCL and the Electricity Regulatory Commission immediately stop the proposed process of granting a Parallel Distribution Licence for the Noida data centre, conduct a transparent and impartial review of the entire matter, and ensure that privatisation through the backdoor is not permitted in Uttar Pradesh in any form.
The Sangharsh Samiti declared that Power employees, farmers and consumers stand united. The electricity distribution system of Uttar Pradesh will not be allowed to be handed over to private companies for their profits. The struggle against backdoor privatisation will be intensified.
