Site icon Your Gateway to Power Transmission & Distribution

Tata Power aims at 10 million consumers in distribution business

Tata

Tata Power aims to quadruple its customer base in the power distribution business, the company’s chairman Natarajan Chandrasekaran said during this year’s Annual General Meeting (AGM) speech.

Tata Power currently has a consumer base of 2.5 million that it aims to quadruple to 10 million over the next five years.

Natarajan Chandrasekaran

Chandrasekaran recalled that Tata Power recently acquired power distribution utility CESU in Odisha and the company will “evaluate similar opportunities in the future to be a leader in the space”.

Tata Power, during FY20, acquired 51 per cent controlling equity stake in Central Electricity Supply Utility (CESU) in Odisha. The utility, catering to consumers in central Odisha, was recently privatized under the public-private partnership model. There are three more utilities in the eastern state—NORTHCO, WESCO and SOUTHCO—that are also coming up for privatization.

Tata Power, through Tata Power Delhi Distribution Ltd (a joint venture with government of NCT of Delhi) is a power distribution utility catering to 1.756 million consumers spread over 510 sqkm of area in north and north-west Delhi. Incidentally, Tata Power DDL managed to further reduce its AT&C losses from 7.93 per cent in FY19 to 7.89 per cent in FY20.

Tata Power is also involved in power distribution in Ajmer, Rajasthan. Tata Ajmer Distribution Ltd, a wholly-owned subsidiary of Tata Power, has been the power distribution franchisee in Ajmer city for the past three years. In Ajmer, the consumer base is 0.151 million spread over an area of 190 sqkm. The AT&C losses in the Ajmer circle were reduced to 9.96 per cent in FY20 from 11.20 per cent in FY19.

In Mumbai, Tata Power is a distribution licensee with a consumer base of around 0.72 million and sales of electricity standing at 4,573 million units in FY20.

 

Focus areas

Tata Power intends to focus on building scale into its new consumer-facing businesses like EV charging, microgrids, Home automation, consumer rooftop solar, etc, the Chairman observed.

The company also aims to be one of the leading players in renewables. It will scale both its manufacturing (solar cells and modules) business as well as the solar EPC business. The company intends to add additional capacity of 10 GW in the next five years, the Chairman said.

 

Mundra UMPP: A core issue

The Mundra ultra mega power plant (UMPP) was cited as a core concern by the Chairman. The project has seen investment of Rs.24,000 crore (including loss funding of Rs.10,000 crore) and it continues to be a drag on the financials and is likely to require further support. “While a number of discussions have happened with the five state government procurers, it is unfortunate that we do not yet have clarity on a resolution. However, for now, we see some relief from lower coal prices,” was how Chandrasekaran put the point across in his AGM speech.

(Featured photograph shows a switchyard of Tata Power Delhi Distribution Ltd)

Exit mobile version