Torrent Power emerges highest Bidder for privatization of power discom in two UTs
Ahmedabad, Feb 21 (FN Agency) Torrent Power Limited today emerged as the highest Bidder for the sale of 51% stake in the Power Distribution Company in the union territory of Dadra & Nagar Haveli and Daman & Diu adjoining Gujarat. According to a statement by the company, the acquisition of 51% stake in the power distribution company by Torrent is subject to further formalities as prescribed under the Tender documents. 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. The approx annual revenue of the discom of the union territory is around Rs 4500 crore while the annual sale and number of consumers is 9000 million units and 1.5 lakh respectively.
Torrent Power 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. Chairman of Torrent Group Samir Mehta said, ”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 Power Distribution company in the country with a presence in 12 cities spread across 3 States and 1 Union Territory.”
Notably, Torrent Power, the Rs. 13,641 Crs integrated power utility of the Rs. 21,500 Crs 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.