EconomyMonday, 22 June 2026·The Hindu - National
Karnataka power distribution licence: Tata Power proposal, KERC, and Escoms losses
Tata Power has sought a distribution licence in Karnataka, raising questions on competition, consumer choice, and the financial stress of Escoms.
Key highlights
Direct fact
In June 2026, Tata Power Company Limited approached the Karnataka Electricity Regulatory Commission (KERC) for a power distribution licence in areas served by Bescom, CESC, Hescom, Mescom and Gescom, with the proposal covering over 1.86 lakh consumers within three years in Bescom limits alone.
Key specifics
- Tata Power plans to serve over 1.86 lakh consumers within 3 years in Bescom limits.
- The licence request covers Bescom, CESC, Hescom, Mescom and Gescom areas in Karnataka.
- Escoms’ accumulated losses rose from ₹17,559 crore in 2022-23 to nearly ₹34,980 crore in 2024-25.
- Borrowings increased from about ₹32,211 crore to almost ₹47,993 crore during the same period.
- Supporters cite solar power at around ₹2.50 to ₹3 per unit, while some older PPAs are around ₹8 per unit.
Exam lens
Question type: economy and power sector regulation, KERC, distribution licence, ₹17,559 crore, ₹34,980 crore, ₹2.50-₹3 per unit; TNPSC may ask how competition and licensing affect electricity distribution.