Haryana Regulator Orders Audits Of Thermal Power Plants

12 Jan 2026 CW Team

The directions were issued during a public hearing on the annual revenue requirement petitions filed by Haryana’s power generation and transmission utilities for the 2026–27 financial year. According to an HERC spokesperson, the commission, chaired by Nand Lal Sharma, along with members Mukesh Garg and Shiv Kumar, also asked the generating company to explore ways to reduce borrowing costs.

The regulator advised HPGCL to adopt competitive and market-linked financing options, including refinancing existing loans, to minimise interest burdens and limit the impact on consumer tariffs. The commission also stressed the need for proper utilisation of ash generated by thermal power plants and directed the formation of a dedicated ash management committee. Emphasis was further placed on conducting regular safety audits at all power stations.

While HPGCL officials said technical audits are currently carried out by retired engineers from BHEL and NTPC, the regulator reiterated that independent third-party audits are mandatory. HPGCL has been asked to submit details of all previous audits conducted at its plants.

The commission also advised HPGCL to undertake comprehensive technical audits of its generating stations through specialised agencies to identify efficiency gaps, assess performance parameters and recommend measures for operational optimisation and cost reduction. During the hearing, the regulator raised concerns over the quality of coal used at the plants, to which HPGCL officials provided what were described as satisfactory explanations.

On the financial front, HVPN has sought an annual revenue requirement of about Rs 27.40 billion for 2026–27, compared with Rs 24.97 billion in the current financial year. HPGCL has projected a revenue requirement of around Rs 2.10 billion for 2026–27.

The Haryana Electricity Regulatory Commission on Wednesday directed Haryana Power Generation Corporation Limited and Haryana Vidyut Prasaran Nigam to ensure that independent third-party audits are conducted at each thermal power generation plant in the state. The directions were issued during a public hearing on the annual revenue requirement petitions filed by Haryana’s power generation and transmission utilities for the 2026–27 financial year. According to an HERC spokesperson, the commission, chaired by Nand Lal Sharma, along with members Mukesh Garg and Shiv Kumar, also asked the generating company to explore ways to reduce borrowing costs. The regulator advised HPGCL to adopt competitive and market-linked financing options, including refinancing existing loans, to minimise interest burdens and limit the impact on consumer tariffs. The commission also stressed the need for proper utilisation of ash generated by thermal power plants and directed the formation of a dedicated ash management committee. Emphasis was further placed on conducting regular safety audits at all power stations. While HPGCL officials said technical audits are currently carried out by retired engineers from BHEL and NTPC, the regulator reiterated that independent third-party audits are mandatory. HPGCL has been asked to submit details of all previous audits conducted at its plants. The commission also advised HPGCL to undertake comprehensive technical audits of its generating stations through specialised agencies to identify efficiency gaps, assess performance parameters and recommend measures for operational optimisation and cost reduction. During the hearing, the regulator raised concerns over the quality of coal used at the plants, to which HPGCL officials provided what were described as satisfactory explanations. On the financial front, HVPN has sought an annual revenue requirement of about Rs 27.40 billion for 2026–27, compared with Rs 24.97 billion in the current financial year. HPGCL has projected a revenue requirement of around Rs 2.10 billion for 2026–27.

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