Builders not to build power infrastructure

18 Oct 2023 CW Team

In a major policy change aimed at rectifying a long-standing issue that has burdened hundreds of housing societies, the Haryana government has announced that developers will no longer be required to construct power substations or provide bank guarantees for them. Instead, power substations will be built by the Haryana Electricity Regulatory Commission (HERC), with the developer being responsible for covering the sanctioned load of a condominium or township and offering the necessary land to the distribution companies (discoms) for the substation.

This transformative decision is expected to result in a significant reduction in the cost of developing electrical infrastructure for builders, with officials estimating potential savings ranging from 20% to 72%, depending on the sanctioned load. The move comes in response to the persistent issue of delayed substation construction by developers, leading to frequent power outages and disruptions in colonies and group housing societies developed by private real estate companies. These problems persist despite adequate power supply at the grid level.

Over the past few years, the Municipal Corporation of Gurgaon (MCG) has taken control of several private colonies, but the electrical infrastructure handover to the Dakshin Haryana Bijli Vitaran Nigam (DHBVN) has been hindered due to the absence of constructed substations.

The Haryana government's latest decision is expected to alleviate the challenges faced by housing societies and improve the reliability of power supply, ultimately benefiting residents and developers alike. This policy shift represents a step towards a more efficient and streamlined approach to electrical infrastructure development in the region.

Infrastructure Energy

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