Torrent Power, according to information available in its latest Annual Report, has cut down T&D losses in its Bhiwandi franchisee area in Maharashtra to 11.93 per cent in FY20 from 15.13 per cent in FY19.
The company was able to curb T&D losses in Bhiwandi as also in Agra (a franchisee area in Uttar Pradesh) due to a host of measures like focused surveillance and vigilance; theft-deterrent systems, equipment and activities; converting distribution network to an underground system; distribution transformer cleaning; law enforcement against detected illegal connections, etc.
In the Bhiwandi area in particular, Torrent Power installed theft-proof joints at nearly 1,200 locations, as a replacement to busbar distribution boxes. Besides, automation was done in nearly 250 switchgear installations including autorecloser, RMU (ring main unit), etc.
In Bhiwandi, Torrent Power has a consumer base of 3.34 lakh spread over an area of 721 sqkm predominantly comprising powerloom units. It may be recalled that the Bhiwandi franchisee is India’s first case of the franchisee model in the power distribution space. Torrent took over this circle way back in January 2007.
Torrent Power expects the overall electricity demand in its franchisee areas (Bhiwandi, Agra and Shil- Mumbra-Kalwa) to be lower in FY21
Electricity sales in Bhiwandi increased by 5.5 per cent to 3,243 million kwh in FY20 from 3074 million kwh in FY19. This increase was partly because of a strike in the powerloom industry during FY19 that caused a “low-base” effect. Nevertheless, the increase in FY20 was in spite of the COVID-19 lockdown that caused an immediate and drastic reduction in demand during the period March 25, 2020 to March 31, 2020, as far as FY20 is concerned. During this period, electricity demand in Bhiwandi dropped by as much as 65 per cent.
Torrent Power expects the overall electricity demand in its franchisee areas (Bhiwandi, Agra and Shil- Mumbra-Kalwa) to be lower in FY21 as a whole, based on the widespread and deep economic and social fallouts from the COVID-19 pandemic.
| Torrent Power: Distribution Franchisee Business | |||||||||
| Parameter | Unit | Bhiwandi | Agra | SMK* | |||||
| FY20 | FY19 | FY20 | FY19 | FY20 | FY19 | ||||
| Area | sqkm | 721 | 721 | 221 | 221 | 65 | — | ||
| Sales | million kwh | 3243 | 3074 | 1801 | 1731 | 27 | — | ||
| T&D Loss | per cent | 11.93 | 15.31 | 12.51 | 14.18 | 55.02 | — | ||
| Consumer Base | lakh | 3.34 | 3.14 | 4.7 | 4.52 | 2.48 | — | ||
| Peak Demand | MVA | 580 | 555 | 473 | 458 | — | — | ||
| Terminal year of DF agreement | 2027 | 2030 | 2040 | ||||||
| *Operations in SMK (Shil-Mumbra-Kalwa) were taken over by Torrent on March 1, 2020 | |||||||||
Meanwhile, bill collection efficiency in Bhiwandi was 96 per cent during FY20, as a whole. It should be mentioned that this metric was 100 per cent during the period April 2019 to February 2020. However, in March 2020, thanks to the COVID-19 fallout, bill collection efficiency dropped to 59 per cent, impacting the overall annual metric by 400 basis points.
It may be mentioned that Torrent Power took over franchisee operations in the Shil-Mumbra-Kalwa (SMK) area in Maharashtra, on March 1, 2020. The agreement is for a 20-year period, up to 2040. The SMK area has a consumer base of 2.48 lakh and is spread over an area of 65 sqkm. The T&D losses in this area are currently at an unruly level of 55.02 per cent.
Distribution Licencee Business
Besides the distribution franchisee (DF) business, Torrent Power is also a distribution licensee in three areas – Ahmedabad & Gandhinagar, Surat and Dahej – all in Gujarat. The newest addition to Torrent’s distribution licencee business is the Dholera Special Investment Region (DSIR) where the company was given the mandate of “additional distribution licencee” in August 2018.
Torrent Power has envisaged to invest Rs.1,200 crore in its DSIR licencee business over the next 10 years.
Torrent will be allowed to supply power to new industrial, commercial and residential units that will come up in DSIR, which is spread over an area of 920 sqkm. The distribution licence period will be 25 years. Dholera SIR is a major project in the Delhi-Mumbai Industrial Corridor (DMIC), to be developed into a global manufacturing hub supported by world class infrastructure.
During FY20, Torrent Power’s activities at DSIR included graded planning and development of an efficient distribution network involving setting up of basic infrastructure and provision of temporary construction power to new industries to be set up in DSIR.
Based on the current development plans outlined by Dholera Special Investment Region Development Authority, the nodal agency of DSIR, Torrent Power has envisaged to invest Rs.1,200 crore in its DSIR licencee business over the next 10 years, to be able to cater to a demand of 425 MVA.
(Featured photograph showing a powerloom unit in Bhiwandi (Maharashtra) is for illustration only)
