Torrent Power has seen significant reduction in T&D losses across its licensed and franchised distribution areas, during the first quarter of FY22.
In an investor presentation, Torrent Power said that T&D losses in both its licensed and franchised areas saw a significant year-on-year decline in the first quarter (April to June) of FY22. This reduction in losses reflects improvement in conditions, as the comparable quarter of FY21 was severely affected by the pandemic.
In the Ahmedabad licensed area, electricity purchase during Q1 of FY22 stood at 2216 million kwh, up 24.2 per cent from 1784 million kwh in Q1 of FY21. T&D losses in the latest quarter were just 7.70 per cent, as against 15.42 per cent. (see table)
Torrent Power annually distributes some 14.5 billion kwh of electricity to its 3.71 million customers across its licensed and franchised areas, spread over Gujarat, Maharashtra and Rajasthan.
SMK Area
The latest addition to its power distribution franchisee is the Shil-Mumbra-Kalwa (SMK) area in Maharashtra. This area, spanning 65 sqkm, was taken over on March 1, 2020 under a competitive bidding process. Regular operations have yet to begin, as the entire period since takeover has been pandemic-affected. Nevertheless, Torrent Power managed to cut T&D losses from 52.56 per cent in Q1 of FY21 to 43.20 per cent in Q1 of FY22.
In the SMK area, a total capital expenditure of Rs.300 crore has been planned. Out of this, Rs.150 crore will be spent in the first five years. The objective is to reduce the current ATC losses, at 47 per cent in FY17, to 12 per cent over the next 15 years. The franchisee agreement is valid up to the year 2040.
DNH & DD
It may be recalled that Torrent Power has emerged as the highest bidder to acquire 51 per cent stake in the power distribution licensee business of the Union Territory of Dadra & Nagar Haveli and Daman & Diu. The matter is currently sub-judice and the letter of award is therefore awaited.
(Photograph, sourced from worldorgs.in, is for representation only)
