Power denied to 5,500 Karnataka units over OC rules
Commencement Certificate
KJ George
We understand difficulties housing and industrial sectors face due to mandatory OC for electricity connections, seeking a practical solution
–Energy Minister KJ George
While neighbouring states like Andhra Pradesh are rolling out red carpets to attract Karnataka-based industries, the Karnataka government has denied electricity connections to nearly 5,500 small-scale industries, citing the lack of(OC) and(CC). This move has triggered widespread concern and backlash from the state's industrial sector.Under a new regulation effective April 4, the state has made it mandatory for industrial units and sheds similar to residential andcommercial properties—to obtain OC and CC before securing electricity connections. However, small and medium entrepreneurs argue that the rule is arbitrary and has disrupted operations across the sector.According to the Karnataka Small Scale Industries Association (KASSIA), several units despite completing internal wiring and paying necessary fees—have been denied power solely because they are situated on B Khata or revenue land and lack the required certificates. Many of these entrepreneurs have invested crores in setting up manufacturing units, poultry farms, and dairy operations, only to face critical delays due to power denial.'We fully understand the difficulties that housing and industrial sectors are facing due to the mandatory Occupancy Certificate requirement for electricity connections,' said Energy Minister, addressing growing unrest among industrialists. 'The Chief Minister has already directed the Chief Secretary to study the issue and submit a detailed report. This matter is being taken seriously and is under active consideration in the Cabinet.'George added that while the state is bound by a Supreme Court directive mandating OCs for utility connections, the government is working on a practical solution. 'We are exploring a by-law amendment to mitigate the impact. Once the Chief Secretary's report is submitted, the Cabinet will take a decision that balances legal compliance with public interest,' he said.The government is citing a 2020 Supreme Court ruling (2.170/2020), which instructed authorities not to provide utilities such as water and electricity to buildings without sanctioned plans or those violating building norms. Based on this, the Karnataka Electricity Regulatory Commission (KERC) issued a directive on March 13, instructing all ESCOMs to deny power without OC.However, industry bodies have pushed back, saying the government is misinterpreting the order. They question why Karnataka is enforcing the rule so stringently while other states continue to encourage industrial activity. Only 6% of industries in the state are located on approved KIADB or KSSIDC plots. The remaining 94% operate from B Khata or revenue lands, particularly in rural and semi-urban areas.
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