Mysore Chamber of Commerce and Industry (MCCI), an industry body, has welcomed the proposal to issue licences to new entrants in the field of electricity distribution business in Karnataka.Responding to a notification issued by Karnataka Electricity Regulatory Commission (KERC) inviting objections and suggestions from the public on issue of distribution licence to Tata Power company in the existing jurisdictional areas of State-owned ESCOMs, MCCI Chairman K. B. Lingaraju, in a letter to KERC Chairman said the industry body “wholeheartedly” welcomes the proposal to licence new entrants in electricity distribution business.The reasons cited by MCCI to welcome new entrants include the “failure” of Government of Karnataka to run the distribution business efficiently while raising tariffs for the past several years without providing any valid justification.Issuing distribution licences to more than one entity will create competition among licencees and improve efficiency while also keeping frequent enhancement of tariff under a check, MCCI said.Further, the industry body claimed that there is interference in the day-to-day administration by the government, making it impossible for the ESCOMS to operate efficiently while also arguing that ESCOMS are exploiting consumers through unjustified tariff hikes.Mr. Lingaraju also alleged that the Government is using ESCOMS to fulfill the political promises made to the electorates. “In FY-2025, it has directed all ESCOMS to write off the dues of urban and rural civic bodies amounting to several hundreds of crores of rupees, thus pushing the ESCOMs to loss which in turn is made good by enhancing the tariff,” he said.The MCCI also alleged that energy audits are not conducted in a methodical and scientific manner, leading to losses. Further, Mr. Lingaraju took exception to political appointments to the posts of Chairpersons of ESCOMs, which, he contended, is adding to the additional burden on ESCOMS and in turn to the consumers. Published - June 19, 2026 07:40 pm IST