United opposition of workers, farmers and consumers halts privatisation of electricity distribution in Karnataka

Report by Kamgar Ekta Committee (KEC) correspondent

In May 2026, Tata Power applied to the Karnataka Electricity Regulatory Commission to grant it the permission to distribute power in 19 districts of the state. The permission requested included all the major districts of the state like Bengaluru Rural, Mysuru, Tumakuru, Belagavi, Dharwad, Uttara Kannada, Dakshina Kannada, and Udupi.

The permission was requested as per the Electricity Act of 2003 which allows regulatory commissions to allow more than one power distributor in an area, provided the distributor sets up its own power distribution infrastructure.  However, the application made by the Tata Power gave no details about the plan of creating its own distribution infrastructure.

It is important to remember that the Electricity (Amendment) Bill 2025, pending with the Standing Committee of the Parliament, mandates the state-owned distribution company or Discom to allow the private distribution licensee to use of its distribution infrastructure by paying it a user fee. Due to the strong opposition of power workers, farmers and consumers to the Bill, the government was forced to refer it to the Standing Committee. The application for distribution licence by Tata Power has probably been made in anticipation of the Electricity (Amendment) Bill 2025 getting approved by parliament in the near future.

Parallel distribution licence is a step towards privatisation of Discoms and converting electricity into a commercial commodity from an essential social necessity. Both power sector workers and farmers have opposed every application for parallel distribution licence in every state of the country.

In Karnataka, too, power sector workers came out large numbers to oppose the Tata Power application. Week after week, farmers held protest rallies in every district. Power sector workers organised a convention in Bengaluru which was attended by tens of thousands of workers to convey their opposition. All India power sector workers and engineers’ organisations like the All India Federation of Electricity Employees and the All India Power Engineers Federation declared that nearly 30 lakh power sector workers and engineers of the whole country would come out in support of Karnataka power workers. Thousands of electricity consumers sent their representation to the Karnataka Electricity Regulatory Commission to oppose the Tata Power application.

Seeing the mounting opposition, Tata Power withdrew their application for licence on 3 July 2026.

It is a victory for the united opposition shown by power workers, farmers and people which stopped this attempt at privatisation of electricity distribution. It is a source of inspiration to workers and people to take up the struggle to oppose any attempt to privatise electricity and other sectors.

 

 

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