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SHUBINVESTS I SEBI RA

5th Aug · SEBI-Registered Analyst

Who Owns the Spare Lane on India's Power Grid? The Jindal Stainless Case Explained

Understanding open access explains how industries reduce energy costs, why transmission access matters, and which listed companies may benefit over time. One lane is empty, but the government wants to keep it free for emergency traffic during peak hours. A private company says, "I'm not adding more vehicles—I just want to use my own vehicle instead." That is exactly what happened between Jindal Stainless and the Haryana government. Jindal invested heavily in wind and solar projects and wanted to bring its own electricity to its Hisar plant using India's interstate transmission network. Haryana refused, arguing that the spare transmission capacity might be needed during summer when electricity demand surges. After an 18-month legal battle, the Haryana Electricity Regulatory Commission ruled that available transmission capacity cannot be blocked merely to reserve it for future short-term users. Open Access allows large consumers to buy electricity directly from generators while paying transmission and wheeling charges. The wires are shared infrastructure—not exclusive property of the local distribution company. The biggest challenge? Discoms lose their most profitable industrial customers. Industrial users traditionally subsidize residential and agricultural consumers. As more industries adopt captive renewable power, the economics of power distribution will continue to evolve. • Jindal Stainless

JINDALSTEL
– Lower long-term power costs and greater energy security. • NTPC Green Energy (upon broader renewable adoption within the group) – Rising renewable demand. • NTPC
NTPC
– Growing renewable generation and transmission opportunities. • Power Grid Corporation of India – Higher utilization of interstate transmission infrastructure. It's about India's electricity market gradually shifting from a monopoly model toward a competitive, renewable-driven ecosystem where the right to access the grid may become as valuable as generating electricity itself.

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