by K Ashok Rao, Patron, All India Power Engineers Federation (AIPEF)
The motive of Haryana government for creating a third DISCOM has nothing to do with any value addition to the supply of electricity to agriculture. The real motive is to segregate the loss making areas from the profitable areas and then privatize the profitable areas. It is just a matter of time before the industrial and residential sectors will be privatised.
The Per Capita Consumption in Haryana is approximately 2,670 units (as of early 2024), which is one of the highest consumption in India. The industrial sector and the domestic residential sector constitute almost 65 to 75% of the total consumption. Agriculture sector constitutes about 15 to 20%. Out of the total Consumption (Utilities) of 55,734 GWh, the agriculture sector consumes roughly 9,176.50 MUs (million units. The agricultural sector would always be loss making. The total subsidy burden for agriculture exceeding ₹5,400 crore in the 2025-26 budget which constitutes over 89% of state electricity subsidies. Agricultural load peaks during summer months (March-June for wheat harvesting, June-September for paddy). High reliance on groundwater irrigation, and therefore electricity consumption is especially during the Rabi and Kharif seasons.
The Government of Haryana has issued a notification that states:
“To ensure faster release of connections and reliable and uninterrupted electricity supply for farmers and to reduce the subsidy burden of the State, the Government of Haryana decided to establish a third power distribution company in the state — The Haryana Agri DISCOM. This will serve all agricultural feeders and agricultural consumers across Haryana”
The claim made by the Government is:
“This initiative will ensure uninterrupted power supply to every farm and significantly accelerate services, from providing new tubewell connections to replacement of faulty transformers. This initiative will also prove to be a milestone in enhancing farmers’ income”
It is it is not clear how an administrative decision of creating a third discount would ensure uninterrupted power supply; significantly accelerated services; replacement of all transformers. Even the present DISCOMS are ensuring all the above. As on date agricultural feeders are managed separately, with specific schedules for uninterrupted power supply in rural areas.
It is obvious that the motive for creating a third DISCOM has nothing to do with any value addition to the supply of electricity to agriculture. The real motive is to segregate the loss making areas from the profitable areas and then privatize the profitable areas. It is just a matter of time before the industrial and residential sectors will be privatised.
The creation of a third DISCOM would increases the Government subsidy due to additional burden of managerial overheads. The third DISCOM would being responsible for supply of electricity to the agricultural sector but would have no direct control over transmission and largescale distribution The Agro DISCOM would not even have an exclusive distribution network.
Annexure I
Sector-wise electricity load pattern In Haryana
1. Domestic (Residential) Sector
• Share: Approximately 35–40% of total consumption.
• Key Drivers: Urbanization, increased appliance usage (ACs, coolers, heaters), and the state’s flagship scheme providing 200 units free electricity to certain categories.
2. Industrial Sector
• Share: Approximately 30–35%.
• Key Drivers: Haryana is a major industrial hub (Gurugram, Faridabad, Panipat, Yamunanagar). Includes Large, Medium, and Small Scale Industries (MSMEs). Demand is high for arc furnaces, rolling mills, textiles, and automotive manufacturing.
3. Agricultural Sector
• Share: Approximately 15–20%.
• Key Drivers: Irrigation pumpsets (tubewells). Haryana has a. The state provides heavily subsidized or free power to farmers during specific hours.
4. Commercial Sector
• Share: Approximately 8–10%.
• Key Drivers: Malls, offices, hotels, hospitals, and IT parks (especially in the Gurugram and NCR region). Lighting, HVAC, and IT infrastructure are major loads.
5. Other Sectors (Public Lighting, Railways, Water Works, Bulk Supply)
• Share: Approximately 5–7%.
• Key Drivers: Street lighting, public water supply and sewerage, government buildings, and railway traction.