Torrent Power has entered into formal agreements to acquire 51 per cent equity stake in the special purpose vehicle “Dadra & Nagar Haveli and Daman & Diu Power Distribution Corporation Ltd”. With this, Torrent Power is set to take over power distribution activities in the Union territory.
In a release, Torrent Power said that it has entered into a share purchase agreement and shareholders’ agreement with the Union Territory of Dadra & Nagar Haveli and Daman & Diu, the holding company of the said special purpose vehicle (SPV).
Expansion of footprint
This acquisition will significantly strengthen Torrent’s position as the leading power distribution company in the country with a presence in 12 cities spread across 3 states and 1 Union Territory. With the addition of DNH & DD, Torrent will distribute nearly 24 billion kwh of electricity per annum to over 3.85 million customers and cater a peak demand of over 5,000 mw, the release said.
Size of operations
In a regulatory filing, Torrent Power said that though the SPV, incorporated on March 8, 2022, has yet to start operations, it is estimated that the company will have estimated annual electricity sales of 9 billion kwh, with sales turnover valued at Rs.4,500 crore. The SPV will cater to around 1.5 lakh customers, spread over a geographical area of around 603 sqkm.
The transfer date is set at April 1, 2022, and Torrent Power is expected to complete the acquisition within 60 days thereafter.
Brief history
- May 2020: Centre decides to privatize power distribution in all Union territories
- February 2021: Torrent Power emerges frontrunner in taking over power distribution in the UT of DNH & DD.
- March 2021: Bombay High Court suspends tender process following the filing of a PIL
- July 2021: Supreme Court stays Bombay High Court order
- November 2021: Cabinet approves formation of Dadra & Nagar Haveli and Daman & Diu Power Distribution Corporation Ltd
- March 2022: Dadra & Nagar Haveli and Daman & Diu Power Distribution Corporation Ltd incorporated as a wholly-owned subsidiary of the UT Administration; Torrent Power signs agreements to acquire 51 per cent stake.
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