Tata Power’s move to formally apply to the Joint Electricity Regulatory Commission (JERC) for a parallel power distribution licence in Goa, as reported in this newspaper last week, has opened up yet another public discourse. Under the provisions of the Electricity Act, 2003, along with the 2025 amendments, the JERC has stated that Tata Power is not seeking to replace the state-run Goa Electricity Department (GED) but to operate alongside it. While the JERC has presented the proposal as a consumer-centric reform that would introduce competition and end a long-standing monopoly, the manner in which such a far-reaching change is being processed raises serious concerns.
Power distribution is an essential public service that affects every citizen, and any attempt to reshape it must be carried out transparently, with public consultation and awareness, rather than through administrative processes that remain largely out of public view.
Although new to Goa, this is not the first of its kind in India. Mumbai has a parallel licensing model that allows consumers to choose between Tata Power and Adani Electricity, a system that has, in many respects, improved efficiency and service standards. Privatisation in Delhi and Odisha has also brought measurable gains through smart metering, lower aggregate technical and commercial (AT&C) losses, and more efficient billing systems.
However, these success stories come with important riders. Private players tend to focus on areas that promise higher returns. This "cherry-picking" of profitable industrial and commercial consumers often leaves state utilities to shoulder the burden of subsidised domestic and agricultural connections. If Tata Power were to secure Goa's lucrative coastal business and industrial estates, the GED could be left with a financially weaker consumer base. That imbalance would steadily erode the department's viability, ultimately forcing the government to either inject larger funds or pass the burden on to ordinary consumers through higher tariffs.
Secondly, over the past several years, the state has spent heavily on modernising Goa's electricity infrastructure, including upgrading substations, laying underground cables, and strengthening transmission networks. Allowing a private company to utilise this taxpayer-funded infrastructure by paying only wheeling charges raises questions about whether justice is being done to the common citizen.
Power Minister Sudin Dhavalikar's response comes as a big surprise, especially when he says he would oppose privatisation "at all costs" for as long as he remains in office. The question is whether Dhavalikar was ignorant of Tata Power’s move and how a major corporate player managed to approach village panchayats to obtain the consent letters required for its application without triggering alarm within the state administration. The minister cannot simply dismiss the matter by saying Tata Power failed to follow the "proper channels."
Power sector reform is a sensitive issue; we have seen how people have recently forced the government to stall the smart meter move and roll back the overload penalties. Going ahead with parallel licensing without meaningful public consultation would undermine the very principles of transparent and accountable governance.
As the JERC's August deadline for Tata Power's compliance affidavit approaches, the electricity department must move beyond rhetorical opposition and place its technical, financial and policy concerns on record before the Commission. More importantly, it must ensure that the people of Goa are given an opportunity to understand, debate and shape a decision that will influence the future of the state's power sector. Hope better sense prevails.
