Torrent Power, in a statement, said that it has seen significant reduction in T&D losses in its licensed and franchised power distribution business, in FY22.
While information on the T&D losses in each distribution area is not available, Torrent Power said it was able to reduce T&D losses in the Ahmedabad and Surat licensee areas to 4.17 per cent and 3.38 per cent, respectively. (see table)
This is the lowest T&D loss in the country, and is comparable with global benchmarks, Gujarat-based Torrent Power said.
In the Bhiwandi franchisee area, T&D losses stood at 11.64 per cent in FY22 with electricity sales during the year standing at 3502 million kwh (FY21: 2944 million kwh).
The company distributes nearly 17 billion units to over 3.79 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat (licensee business) and Bhiwandi, SMK (Shil, Mumbra & Kalwa) in Maharashtra and Agra in Uttar Pradesh (franchisee business).
The Dholera SIR (Special Investment Region) is expected to come up as a major driver to Torrent Power’s licensee business. Torrent Power expects to invest Rs.1,200 crore over the next ten years to cater to a demand of 425 MVA. The license area, spread over 920 sqkm, is a major project on the Delhi-Mumbai Industrial Corridor (DMIC), to be developed into a global manufacturing hub.
DNH&DD
Torrent Power took over the operations as distribution licensee of Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD) effective April 1, 2022, through a new company called “Dadra & Nagar Haveli and Daman & Diu Power Distribution Company Ltd” with 51 per cent stake held by Torrent Power. The rest is owned by the UT administration. This company will serve a customer base of 1.5 lakh, annually distributing around 9 billion kwh of electricity. Annual revenues from this licensee area are expected to be Rs.4,500 crore per year.
SMK
The Shil, Mumbra & Kalwa (SMK) area is the latest area to be taken over by Torrent Power in the franchisee business. Operations at SMK were taken over on March 1, 2020, under a competitive bidding process. The concession agreement is up to February 2040. Torrent Power expects total capital investment of Rs.300 crore over the agreement duration, out of which Rs.150 crore will be invested in the first five years. SMK had suffered AT&C losses of 47 per cent in FY17. This is expected to come down to 12 per cent over the next 15 years.
Featured photograph (source unknown) shows construction work in progress on the Dholera Special Investment Region (SIR) in Gujarat.