Essar group company Essar Projects has withdrawn its application from Haryana power regulator for grant of power distribution license in Gurgaon's Municipal Corporation area.
"The company (Essar Projects) has withdrawn its petition for grant of distribution licensee in Gurgaon," Haryana Electricity Regulatory Commission, Director (Tariff) Sanjay Varma said today.
Essar Projects had sought license to distribute power in municipal area of Gurgaon in Haryana as the second energy supplier in the district.
"Company's MD Alwyn Bowden in affidavit dated October 5 prayed that company may be allowed to withdraw petition for grant of distribution licensee. In view of the above, the subject cited petition is dismissed as withdrawn," said HERC.
The company had filed the application for distribution licence in the area of Gurgaon Municipal Corporation as per the provision laid under section 14 read with section 15 of Electricity Act, in the month of March this year.
The application was scheduled for hearing on October 29. Essar Projects (India) Ltd had applied for electricity distribution license in the area of Gurgaon municipal corporation for a period of 25 years.
If the licence had been granted to Essar Projects, it would have been the second distribution licence holder after state-owned Dakshin Haryana Bijli Vitran Nigam (DHBVN) for supplying power to energy consumers within municipal limits of Gurgaon.
Haryana power distribution companies had objected to Essar's proposal for distribution of power, saying that it would leave them with surplus power or unsold energy.
Gurgaon circle is a very potential area in terms of revenue generation and consumer load. DHBVN generates almost 50 per cent of its revenue from Gurgaon circle only out of its
total five circles. Gurgoan has power consumer base of 3.60 lakh with average power load of 700-800 MW.
Pegging the capital outlay on this project at Rs 1,519 crore, the company in its application had said that it would set up its own distribution network for supplying power to the consumers.
The company had kept the cost of power from own generation and purchase at Rs 5.19 per unit with hike of 3-4 per cent per annum.
The Electricity Act, 2003 provides for second power distribution licence provided, the company has its own power distribution related infrastructure.