Torrent Power records lower distribution losses in 9MFY24

 

 

Torrent Power has recorded lower year-0n-year distribution losses in almost all of its licensed and franchised areas during the first nine months (9M: April to December) of FY24.

According to a recent investor presentation filed on stock exchanges, Torrent Power saw lower distribution losses in all its operational areas, with the exception of the Ahmedabad/Gandhinagar licensed area where losses rose slightly from 3.24 per cent in 9MFY23 to 3.63 per cent in 9MFY24. (See table).

In the newly-acquired licensed area of Dadra & Nagar Haveli and Daman & Diu (DNHDD), losses were remarkably lower at 1.49 per cent in 9MFY24.

It is interesting to note that the DNHDD has now become Torrent Power’s largest distribution area, surpassing Ahmednagar/Gandhinagar. In Q3 (October to December) of FY24, electricity purchases in DNHDD stood at 2,536 million kwh (MU) as against the corresponding 2014 for Ahmedabad. Of the total electricity purchase of Torrent Power in Q3 of FY24, across all licensed and franchised areas, DNHDD accounted for 35 per cent.

The DNHDD area was formally taken over by Torrent Power on April 1, 2022 through a joint venture in which Torrent Power holds 51 per cent equity and the UT administration, the remainder.

In the Shil-Kalwa-Mumbra (SMK) franchised area, Torrent Power saw reduction in losses from 34.01 per cent in Q3 of FY23 to 30.01 per cent in Q3 of FY24. Electricity sales grew 14 per cent, by the same comparison, to reach 208 MU.

The SMK area that was taken over on March 1, 2020 had reported distribution losses of as much as 47 per cent in FY17. These reduced to 33 per cent in FY23 (after the takeover) and are estimated to eventually taper down to 12 per cent.

Torrent Power has planned to make capital expenditure of Rs.300 crore in the SMK area during the licence period, which is up to February 2040. Of this investment, Rs.150 crore is expected to be invested in the first five years – by March 2025.

It may be mentioned that the current distribution licence of the Ahmednagar/Gandhinagar area is valid till 2025. The same is deemed to be renewed for a further period of 25 years, unless revoked.

 

MBSIR

It may be mentioned that in FY23, Torrent Power was granted parallel power distribution licence for the 102-sqkm Mandal Becharaji Special Investment Region (MBSIR) in Gujarat. However, the matter is currently sub-judice.

Also read: Torrent Power Incorporates Subsidiaries For Clean Energy Business

Featured photograph (source: Torrent Power) shows a 220kV GIS substation of Torrent Power at Gandhinagar, Gujarat.