ON
🔍
← Back to feed
IndiaEconomyOverlooked from the right2 days ago

Industry body welcomes new entrants in State’s power distribution sector

The Mysore Chamber of Commerce and Industry (MCCI) has expressed support for the proposal to allow new entrants in Karnataka's electricity distribution sector. In response to a notice from the Karnataka Electricity Regulatory Commission (KERC), MCCI Chairman K.B. Lingaraju stated that the government has failed to manage the distribution business efficiently over the years and has raised tariffs without valid justification. The MCCI argues that introducing competition through multiple licensees would enhance efficiency and prevent unjustified tariff increases. It also claims that government干预 h

Mysore Chamber of Commerce and Industry (MCCI), an industry body, has welcomed the proposal to issue licences to new entrants in the field of electricity distribution business in Karnataka.

Responding to a notification issued by Karnataka Electricity Regulatory Commission (KERC) inviting objections and suggestions from the public on issue of distribution licence to Tata Power company in the existing jurisdictional areas of State-owned ESCOMs, MCCI Chairman K. B. Lingaraju, in a letter to KERC Chairman said the industry body “wholeheartedly” welcomes the proposal to licence new entrants in electricity distribution business.

The reasons cited by MCCI to welcome new entrants include the “failure” of Government of Karnataka to run the distribution business efficiently while raising tariffs for the past several years without providing any valid justification.

Issuing distribution licences to more than one entity will create competition among licencees and improve efficiency while also keeping frequent enhancement of tariff under a check, MCCI said.

Further, the industry body claimed that there is interference in the day-to-day administration by the government, making it impossible for the ESCOMS to operate efficiently while also arguing that ESCOMS are exploiting consumers through unjustified tariff hikes.

Mr. Lingaraju also alleged that the Government is using ESCOMS to fulfill the political promises made to the electorates. “In FY-2025, it has directed all ESCOMS to write off the dues of urban and rural civic bodies amounting to several hundreds of crores of rupees, thus pushing the ESCOMs to loss which in turn is made good by enhancing the tariff,” he said.

The MCCI also alleged that energy audits are not conducted in a methodical and scientific manner, leading to losses. Further, Mr. Lingaraju took exception to political appointments to the posts of Chairpersons of ESCOMs, which, he contended, is adding to the additional burden on ESCOMS and in turn to the consumers.

Published - June 19, 2026 07:40 pm IST

Read the full article at The Hindu →
Source document: Karnataka Electricity Regulatory Commission (KERC)

1 reports

The HinduIndependentLeft2 days ago
Industry body welcomes new entrants in State’s power distribution sector

The Mysore Chamber of Commerce and Industry (MCCI) has expressed support for the proposal to allow new entrants in Karnataka's electricity distribution sector. In response to a notice from the Karnataka Electricity Regulatory Commission (KERC), MCCI Chairman K.B. Lingaraju stated that the government has failed to manage the distribution business efficiently over the years and has raised tariffs without valid justification. The MCCI argues that introducing competition through multiple licensees would enhance efficiency and prevent unjustified tariff increases. It also claims that government干预 h

Bias read (Left): The article presents the MCCI's perspective, which criticizes the state government's management of electricity distribution and accuses it of inefficiency and unfair practices. While the article does not explicitly take a stance, the framing emphasizes government failure and consumer exploitation, a

Official sources cited

  • government Karnataka Electricity Regulatory Commission (KERC)
  • organisation Mysore Chamber of Commerce and Industry (MCCI)

Go to the primary sources (2)

The official sources this coverage is built on. Read them directly to bypass framing.

  • governmentKarnataka Electricity Regulatory Commission (KERC)
  • organisationMysore Chamber of Commerce and Industry (MCCI)