Haryana’s Policy Shift: Developers No Longer Responsible for Power Substations

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    The Haryana government has implemented a significant policy change, relieving developers from the responsibility of constructing power substations. This decision corrects a longstanding issue that has burdened housing societies across the state.

    For years, housing colonies and group housing societies developed by private real estate developers in Haryana have suffered from frequent power outages and disruptions, despite the grid level having adequate power supply. The primary cause of these problems was the delayed construction of substations by developers. As a result, the Municipal Corporation of Gurugram (MCG) took over several private colonies, leaving the electrical infrastructure unattended because substations had not been built.

    Developers had argued that they had already contributed external development charges to the government, and adding substation construction to their responsibilities was unjust. This situation had left both builders and residents in a state of uncertainty.

    Under the new policy, the construction of substations now falls under the purview of discoms, which is a welcome change for both developers and residents.

    Previously, developers with sanctioned loads of 6 MVA to 20 MVA were required to invest substantial amounts, ranging from Rs 7.5 crore to Rs 8.5 crore, for substation construction. However, with this policy change, developers will only need to allocate Rs 2 crore to Rs 6.8 crore for this purpose, substantially reducing their financial burden.

    Another favorable aspect of the policy is the reduction in land requirements for substations, which is especially beneficial in a land-scarce city.

    The policy also addresses the unique challenges faced by smaller residential societies with sanctioned loads of up to 5 MVA. These societies will no longer be obliged to provide land for a substation, simplifying the process by only requiring payment for the electricity connection and the necessary load.

    For plotted colonies, the policy includes provisions for individual connections. Previously, the discom provided single-point connections to developers who, in turn, supplied branched connections to individual homeowners. This approach improves efficiency for both developers and consumers.

    In a consumer-friendly move, the policy eliminates service connection charges, making it easier for new consumers to access the power supply.

    The Haryana government’s decision to shift the responsibility of constructing power substations from developers to discoms is a significant policy change that addresses longstanding issues. The reduction in costs and land requirements, particularly for smaller residential societies, allows developers to focus on housing development, while the burden of power infrastructure is transferred. The removal of service connection charges benefits consumers, making it easier for them to access electricity. This policy shift promises a brighter and more efficient future for real estate development in Haryana.

    Also Read: Haryana Government Approves Policy Allowing Residential Plot Conversion to Commercial Use, Expected to Boost Property Prices

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