The Delhi Cabinet denied a license to a private company seeking to operate in the Lutyen’s Delhi area on Monday. The proposal was rejected on concerns ranging from security to quality and to save any possible embarrassment in the future, a senior government official said.

The proposal was first mooted last year and approved in principle by the Delhi Electricity Regulatory Commission.

The Home ministry later suspended the plan to study the fallouts in detail and finally rejected the proposal a few months ago, asking the state government for a procedural follow up. A prime concern for the government was entrusting a private company with sensitive customers like embassies and high commissions. “Just imagine what would happen if the company disconnects the supply to an embassy because of non-payment of bill. For the company it’s just business but for the government it would be a huge embarrassment,” a power official said.

The New Delhi Municipal Council currently supplies electricity here, while the rest of the Capital is serviced by North Delhi Power Limited, BSES Rajdhani, BSES Yamuna and the Military Engineering Services, which operates in the cantonment.