The distribution business — both franchisee and licensee — of Torrent Power witnessed a growth of 63 percent in terms of volume of electricity purchased.
According to an investor presentation filed by Torrent Power on stock exchanges, total electricity purchase by the distribution business stood at 30,037 million kWh (million units or MU) in FY23 as against 18,405 MU in FY22. This implied an impressive growth of 63.2 percent.
Most of this growth was attributable to the distribution licensee business in Dadra & Nagar Haveli and Daman & Diu (DNH&DD) which Torrent Power took over on April 1, 2022 (the first day of FY23). This business is being carried out by “Dadra & Nagar Haveli and Daman & Diu Power Distribution Company Ltd” – a joint venture between Torrent Power (equity: 51 per cent) and the UT Administration, holding the remaining 49 percent.
In fact, the electricity sales in the DNH&DD licensee area, at 9,962 MU, were the highest in any licensed or franchised distribution area run by Torrent Power. This UT accounted for over one-third of Torrent Power’s distribution business volume in FY23.
Distribution losses
Torrent Power also saw a steady reduction in distribution losses across its licensed and franchised areas. In the Ahmedabad/Gandhinagar licensed area, losses in FY23 dropped to 3.74 percent from 4.17 percent in FY22. In Surat, such losses fell to 3.17 percent in FY23 from 3.38 percent in FY22.
In each of the franchised distribution areas of Bhiwandi (Maharashtra), Agra (Uttar Pradesh), and Shil-Mumbra-Kalwa (Maharashtra), there was a decline in losses, across the board. In Bhiwandi, distribution losses fell to 10 percent in FY23 – apparently the lowest annual losses ever since Torrent Power’s taking over this circle in January 2007. At the time of the takeover, distribution losses in Bhiwandi ruled at an appalling 58 percent.
In the Agra franchised area that was taken over in April 2010, distribution losses stood at just 9.49 percent in FY23 – falling not just from 12.10 percent in FY22 but from an unruly 59 percent at the time of takeover.
Capex in SMK
Meanwhile, Torrent Power has outlined a capital expenditure of Rs.300 crore in the Shil-Mumbra-Kalwa (SMK) franchise area, which was taken over in March 2020. The investment would be made over the agreement term (up to February 2040) with Rs.150 crore of this expected to be made in the first five years. The distribution losses in the SMK area stood at 47 percent in FY17 (before the takeover) and fell to 33 percent in FY23.
Also read: Torrent Power Incorporates New Subsidiaries
Second distribution licensee
Torrent Power has applied for becoming the second distribution licensee in three areas – all in Maharashtra. These are Thane/Palghar, Pune and Nagpur. The application for this is pending with Maharashtra Electricity Regulatory Commission (MERC), according to information available with T&D India. It may be mentioned that Torrent Power is already the second distribution licensee in the Dahej Special Economic Zone area in Gujarat. The Dahej licensee business covers a small area of 17 sqm with an estimated peak demand of 106 MW in FY23. Distribution losses in the Dahej SEZ area were minimal, at just 0.48 percent in FY23.
Featured photograph (source: Torrent Power) shows a view of Dadra Nagar Haveli where Torrent Power is a distribution licensee, effective April 1, 2022.
