Bengaluru: The Karnataka government’s next move on the entry of private players into the state’s power distribution sector is expected to come up for discussion at the State Cabinet meeting on Thursday, with indications that it may invoke Section 108 of the Electricity Act to issue policy directions to the Karnataka Electricity Regulatory Commission (KERC). The deliberations assume significance as Tata Power has applied for a distribution licence to enter Karnataka’s electricity distribution sector.According to highly placed sources in the Energy Department, the government is considering invoking Section 108, which empowers the State Government to issue policy directions to the electricity regulator in matters of public interest. The proposed direction is expected to require KERC to consider Tata Power’s licence application only if the company develops and operates its own electricity distribution network, instead of using the existing infrastructure owned by the State-run Electricity Supply Companies (Escoms).The move comes amid mounting opposition from power sector employees, who contend that allowing private companies to use the existing distribution network would amount to the privatisation of the state’s electricity distribution system.Addressing representatives of power sector employees on Monday, June 29, 2025 in Benglauru, Chief Minister DK Shivakumar said the decision would be taken collectively by the Cabinet and not by him alone. “You are protesting against the privatisation of power corporations. Everyone is waiting to hear what I will say. But this issue first came up in 2003. Who brought in the law related to it? It was the BJP government. None of you raised your voice then,” the Chief Minister said.Assuring employees that their concerns would be factored into the government’s decision, Shivakumar added, “Minister KJ George has informed me that all Escom chairpersons are unanimous that privatisation should not happen during my tenure under any circumstances. I have already expressed my stand, but I alone cannot decide. Your opinion is my opinion. I will honour the trust you have placed in me, and a decision will be taken at the next Cabinet meeting.”The developments gathered further significance on Wednesday when Shivakumar met a delegation of the Karnataka Electricity Regulatory Commission (KERC), led by Chairperson P Ravikumar and comprising members Jawaid Akhtar, HK Jagadeesh and other senior officials. While government sources described the interaction as a routine meeting, it assumes significance as it took place a day before the Cabinet is expected to deliberate on the politically sensitive issue of private participation in power distribution.The Cabinet’s decision is expected to determine whether Karnataka continues with its long-standing state-owned electricity distribution model or allows private distribution licensees to operate under the condition that they create and maintain their own independent distribution infrastructure.
