Tata Power, Torrent, CESC, Adani Energy shares: Parallel licensing next big opportunity?
JM Financial said parallel licensing should be the next big opportunity for distribution-focussed utilities such as Tata Power, Torrent Power, CESC and Adani Energy.
- Oct 28, 2026,
- Updated Oct 28, 2026 1:03 PM IST
JM Financial in a note on Wednesday said the ongoing discom reforms, with parallel licensing taking its root, should be the next big opportunity for distribution-focussed utilities such as Tata Power Company Ltd, Torrent Power Ltd, CESC Ltd and Adani Energy Solutions Ltd.
It cited Haryana Electricity Regulatory Commission's grant to Eleven Power a 25-year licence to distribute electricity in the Gurugram and Nuh revenue districts, already served by state discom.
"In fact, parallel licensing applications across the country have been gaining momentum over the past few months with Tata Power, Adani Electricity and/or Torrent Power applying for licensing in areas of Maharashtra, Karnataka, Chhattisgarh and Goa. Andhra Pradesh has given Google a deemed distribution licence for its 1GW AI data centre hub near Visakhapatnam," JM Financial said.
These developments, JM Financial said, imply the government is experimenting with parallel licensing amid muted progress in discom privatisation.
Parallel licensing, however, calls upon on each licencee to establish its own distribution network, which is operationally infeasible and financially burdensome.
"Accordingly, the government is working on the Electricity (Amendment) Bill, 2025, which proposes sharing of existing network among multiple discoms. Given the steady progress in amendment, licensing applications and the approval for Gurugram, we believe the odds of a calibrated government push for reforms in the distribution sector are high," JM Financial said.
JM said parallel licensing applications have been gaining momentum over the past few months. Tata Power, Adani Electricity and Torrent Power have applied for licensing pertaining to various areas in Maharashtra. Tata Power has also filed applications across Karnataka, Chhattisgarh and Goa. Additionally, parallel licensing is increasingly being considered for large new loads and high-revenue consumer segments such as data centres.
"We believe the creation of parallel discom infrastructure is both operationally infeasible and financially burdensome. As proposed in the draft Electricity (Amendment) Bill, 2025, if network sharing is passed in Parliament, parallel licensing will jump-start (as seen when sharing of telecom spectrum was allowed in 2012) and the competitive advantage will move towards the discom that can procure power economically, manage consumers well and operate efficiently without incurring additional/minimal capex for parallel infra," JM said.
JM Financial said parallel licensing should be the next big opportunity for distribution-focussed utilities such as Tata Power, Torrent Power, CESC and Adani Energy.
JM Financial in a note on Wednesday said the ongoing discom reforms, with parallel licensing taking its root, should be the next big opportunity for distribution-focussed utilities such as Tata Power Company Ltd, Torrent Power Ltd, CESC Ltd and Adani Energy Solutions Ltd.
It cited Haryana Electricity Regulatory Commission's grant to Eleven Power a 25-year licence to distribute electricity in the Gurugram and Nuh revenue districts, already served by state discom.
"In fact, parallel licensing applications across the country have been gaining momentum over the past few months with Tata Power, Adani Electricity and/or Torrent Power applying for licensing in areas of Maharashtra, Karnataka, Chhattisgarh and Goa. Andhra Pradesh has given Google a deemed distribution licence for its 1GW AI data centre hub near Visakhapatnam," JM Financial said.
These developments, JM Financial said, imply the government is experimenting with parallel licensing amid muted progress in discom privatisation.
Parallel licensing, however, calls upon on each licencee to establish its own distribution network, which is operationally infeasible and financially burdensome.
"Accordingly, the government is working on the Electricity (Amendment) Bill, 2025, which proposes sharing of existing network among multiple discoms. Given the steady progress in amendment, licensing applications and the approval for Gurugram, we believe the odds of a calibrated government push for reforms in the distribution sector are high," JM Financial said.
JM said parallel licensing applications have been gaining momentum over the past few months. Tata Power, Adani Electricity and Torrent Power have applied for licensing pertaining to various areas in Maharashtra. Tata Power has also filed applications across Karnataka, Chhattisgarh and Goa. Additionally, parallel licensing is increasingly being considered for large new loads and high-revenue consumer segments such as data centres.
"We believe the creation of parallel discom infrastructure is both operationally infeasible and financially burdensome. As proposed in the draft Electricity (Amendment) Bill, 2025, if network sharing is passed in Parliament, parallel licensing will jump-start (as seen when sharing of telecom spectrum was allowed in 2012) and the competitive advantage will move towards the discom that can procure power economically, manage consumers well and operate efficiently without incurring additional/minimal capex for parallel infra," JM said.
JM Financial said parallel licensing should be the next big opportunity for distribution-focussed utilities such as Tata Power, Torrent Power, CESC and Adani Energy.