Essar Projects, the group company of Essar, has withdrawn its application from Haryana Electricity Regulatory Commission for grant of power distribution license in Gurgaon's Municipal Corporation area.
Essar Projects had earlier sought license to distribute power in municipal area of Gurgaon in Haryana as the second energy supplier in the district and had filed the application as per the provision laid under section 14 read with section 15 of Electricity Act, in the month of March this year.
If the license had been granted to Essar Projects, it would have been the second distribution license holder after state-owned Dakshin Haryana Bijli Vitran Nigam (DHBVN) for supplying power to energy consumers within municipal limits of Gurgaon.
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 license provided, the company has its own power distribution related infrastructure.
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