Tata Power to boost power supply, last-mile distribution in Jammu & Kashmir

Soon after Tata Power tied up with Ajmer Vidyut Vitran Nigam for electricity distribution in Ajmer for 20 years, the company has set its eyes on Jammu & Kashmir which is taking its consultancy services to strengthen it's last mile power distribution network.

Tata Power Delhi Distribution Ltd (TPDDL), an arm of Tata Power would lend its technical assistance to its parent company.

“TPDDL looks after Delhi distribution and our parent which is Tata Power has bid for the franchise in Ajmer and has been selected based on the bid. It’s a 20 year arrangement, we will do the operation and maintenance well as the billing and collection,” Praveer Sinha, CEO & Managing Director TPDDL told Business Standard in an interview.

Sinha said the parent company’s faith in TPDDL comes from the fact that we have the domain knowledge and the experience in Delhi and Mumbai.

When asked to elaborate project in Jammu & Kashmir to improve the electricity distribution, Sinha only divulged that the effort would be to energize the Ladakh district of the state.

Jammu & Kashmir signed the MoU for power distribution reforms Ujwal Discoms Assurance Yojana (UDAY) in March last year. The tripartite agreement with central ministry of power, state government and the discoms aims at financial and operational reforms in state owned discoms.

An overall net benefit of approximately Rs 9800 crore would accrue to the State by opting to participate in UDAY, by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround, said the officials. The reduction in AT&C losses and transmission losses to 15% and 4% respectively is likely to bring additional revenue of around Rs.7150 crore during the period of turnaround. Officials said joining  hands with Tata Power is part of the reform process.

TPDDL is looking to increase the ambit of its consultancy services in the states of Uttarakhand, Haryana, Goa and Karnataka and explore similar opportunities overseas mainly in Southeast Asia and Africa.

In order to expand its business presence in the power distribution segment, TPDDL is pinning hopes on regulatory reforms through proposed amendments in the Electricity Act.

“For the proposal segregating carriage and content several discussions have been going on. The Forum of Regulators (FOR) have come out with the action plan dividing the states into 4 parts or 4 blocks and would go for separation of carriage and content in Phase I (3-5 years)and likewise. As the government has laid emphasis on IT implementation, it should be executed as soon as the discoms are ready for separation of carriage and content. For instance Delhi, Gujarat, Punjab, Karnataka likely in Phase I,” Sinha said.

Besides Tata Power, other companies that offer franchise model services are Essel Utilities and Torrent Power. Tata Power would be taking up other similar franchise opportunities in other cities as and when they come, he added.

Subsequent to winning the bid for distribution franchise of Ajmer circle, Tata Power has formed a special purpose company, TP Ajmer Distribution Ltd to operate and maintain the distribution network in Ajmer city.

Currently, Tata Power is doing consultancy work with four distribution companies in Nigeria and is exploring opportunities in Ghana and other places.