Torrent Power expects to invest Rs.150 crore in the Shil-Mumbra-Kalwa franchise area in Maharashtra. These subdivisions were handed over to Torrent Power, under the distribution franchisee model, on March 1, 2020.
This investment of Rs.150 crore will be made over the next five years, and represents half of the Rs.300-crore worth of overall investment that Torrent Power intends to make in the SMK area during the 20-year franchisee duration, which is from March 1, 2020 up to February 29, 2040.
It may be mentioned that Torrent Power has just about begun operations in the SMK area as much of the period beginning March 1, 2020 was affected by the lockdown.
The Shil, Mumbra & Kalwa sub-divisions, spread over an area of 65 sqkm, have a consumer base of 2.15 lakh. In FY17, considered as the base year, the ATC losses for the given region were estimated at 47 per cent. The quantum of electricity supplied was 677 million kwh while net sales were only 376 million kwh.
Torrent Power’s obligations under the distribution franchisee agreement (DFA) will be to distribute electricity to the consumers on behalf of MSEDCL in accordance with applicable law, regulations and directives of MERC. TPL is expected to upgrade the infrastructure, improve quality of supply and lower AT&C losses; whereas MSEDCL is obliged to supply input power at annual input rates as agreed under the DFA.
Torrent Power expects that the ATC losses of 47 per cent in FY17 (base year) would be gradually brought down to 12 per cent over the next 15 years.
T&D losses widen in H1
Torrent Power had to contend with mounting T&D losses (also referred to as ATC or aggregate technical and commercial losses) in its other two distribution franchisee areas of Bhiwandi in Maharashtra and Agra in Uttar Pradesh.
In the first half (April to September) of FY21, T&D losses in Bhiwandi circle were 23.04 per cent as against 14.22 per cent in H1 of FY20. Likewise, such losses in the Agra franchise rose to 16.04 per cent from 14.11 per cent.
(Featured photograph for illustration only)
