Adani’s Noida Data Centre Licence Proposal Faces Opposition From Power Stakeholders

Lucknow, Aug 14 (KNN) The Uttar Pradesh government is considering a separate parallel electricity distribution licence for Adani Energy Solutions Step Eleven Limited for its proposed data centre in Noida, a move that has drawn opposition from power employees and consumer representatives.

The Vidyut Karmachari Sanyukt Sangharsh Samiti and Uttar Pradesh State Electricity Consumer Council have opposed the proposal, warning it could weaken state-owned Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) and encourage wider private participation in electricity distribution.

UPERC, in an August 5 order, invited objections and suggestions within a month after publication of the draft proposal. Adani Group has also published an advertisement for the proposed licence. 

A similar arrangement is already operational in Greater Noida, where NIDP holds a separate distribution licence for a data centre.

Consumer Council Flags Revenue And Cross-Subsidy Concerns

Uttar Pradesh State Electricity Consumer Council Chairman Avadhesh Verma said the council had opposed Adani Group’s parallel distribution licence proposal since 2023 and would now file objections before UPERC as the process advances for the Noida data centre.

He warned that the licence could affect distribution companies’ revenues and the cross-subsidy mechanism, and urged UPERC to assess the impact of losing high-revenue consumers and the recovery of investments already made in the existing network.

Power Employees Oppose Proposed Parallel Licence

The Vidyut Karmachari Sanyukt Sangharsh Samiti opposed the proposal, calling it an attempt to revive electricity privatisation. 

It warned that shifting large consumers from PVVNL could weaken its finances and raised concerns over private operators using the government network to serve selected high-value consumers. 

Concerns Over Wider Private Participation

The committee warned that the proposal could set a precedent for parallel distribution licences for other large consumers. 

It urged UPERC to ensure transparency by making public the application, service area, consumer details, network-use terms, revenue implications and potential financial impact on the state-owned distributor. 

(KNN Bureau)