The power distribution business of Torrent Power got a significant boost from the new licensee area of Union Territory of Dadra & Nagar Haveli and Daman & Diu (DNH&DD) during the third quarter of FY23.
According to an analysis by T&D India based on an investor presentation filed by Torrent Power on stock exchanges, the new licensee area of DNH&DD contributed 35 per cent to the company’s overall power distribution business during Q3 (October to December) of FY23, in volume terms.
Torrent Power’s overall volume of power distribution business (measured in terms of electricity purchased) was 6,920 MU (million units or million kwh) during Q3 of FY23, in which DNH&DD had a share of 2,439 MU. Even in terms of T&D losses, DNH&DD did very well recording a level of just 1.99 per cent in Q3 of FY23. (See table).
The operations of DNH&DD were taken over by Torrent Power on April 1, 2022, through a new joint venture company “Dadra & Nagar Haveli and Daman & Diu Power Distribution Corporation Ltd” in which Torrent Power has a controlling stake of 51 per cent, as well as management control. The remaining is held by the UT Administration. Spread over an area of 603 sqkm, DNH&DD had a peak power demand of 1,150 MW in FY22.
Torrent Power’s distribution business is spread across both the licensee and the franchisee models with a total base of 3.94 million consumers and annual electricity sales of around 26 billion kwh. . Under the licensee model, the company caters to Ahmedabad, Surat, Dahej, Dholera Special Investment Region (SIR), and UT of DNH&DD. The distribution franchisee operations are carried out at Bhiwandi (Maharashtra), Agra (Uttar Pradesh) and Shil-Mumbra-Kalwa (Maharashtra).
Also read: Torrent Power Expects To Start Operations In Dholera This Year
Second licensee
Torrent Power this year made an application for grant of parallel distribution licence in various areas of Maharashtra including Thane & Palghar, Pune and Nagpur. The application, made in early 2023, is pending with Maharashtra Electricity Regulatory Commission (MERC). It may be mentioned that the Electricity Act, 2003 provides for additional distribution licensees under Section 14. Once the licence is granted, electricity consumers of the aforementioned area can choose their power supplier – whether the existing one (MSEDCL) or Torrent Power.
It may be mentioned that Torrent Power is already the second distribution licensee in the Dahej SEZ area.
