Gujarat-based Torrent Power Ltd has emerged as the highest bidder for the sale of 51 % stake for the privatization of power distribution in the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
The Bidding for the Distribution Business of the UT has been undertaken as part of the Government of India’s initiative to privatize distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country as the government pushes for privatization in the power distribution sector.
Torrent Power is a leading private sector company which currently distributes nearly 16.66 billion units to over 3.65 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater a peak demand of over 5000 MW.
“With this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2% of India’s total power consumption. This acquisition will significantly strengthen Torrent’s position as the leading company in the country with a presence in 12 cities spread across 3 States and one Union Territory,” Samir Mehta, Chairman of Torrent group said in a statement.
It may be noted that the Torrent Power, the ₹ 13,641 crore integrated power utility of the ₹ 21,500 crore Torrent Group, is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.
In power generation, it has an aggregate installed generation capacity of 3,879 MW comprising 2,730 MW of gas-based, 787 MW of renewable and 362 MW of coal-based capacity.