No power for GMR Hyderabad Airport Power Distribution Limited

Hyderabad: The AP Electricity Regulatory Commission has turned down the request of GHAPDL (GMR Hyderabad Air-port Power Distrib-ution Limited) for a licence to distribute power to the 3,000-acre airport complex, as that will create a monopoly. APCPDL had staunchly opposed granting of licence to GHAPDL as it will affect its business.

GHAPDL is a 100 per cent subsidiary of Hyderabad International Airport Limited (HIAL), a PPP entity promoted by the GMR group.

In its application submitted in November 2013, the GHAPDL said that an airport city is being planned and that it will require extra power. The application said the airport city aims to provide an integrated facility for businesses like theme parks, amusement arcades, golf course, sports, entertainment facilities, hospitality, conference venues, trade fairs, meeting facilities, business centres, bank and exchange, real estate, offices, shopping malls, hospitals and educational institutions by enabling the participation of global brands. All services like water, sewage, power and IT are proposed to be professionally managed to ensure high reliability.

The APERC, however, said that if permission is given it will not create competition, “but may result in the creation of a monopoly.”

The Commission also found that the GHAPDL  application did not meet all the requirements of Section 14 (Clause 12) of the Electricity Act, 2003, and rejected it.

Due to the above reasons, the application made by GHAPDL for a Distribution Licence is rejected," the order said.