Torrent Power now eyes distribution in MP, Bihar

Close on the heels of acquiring a 10-year distribution franchise for the Bhiwandi circle in Maharashtra, Torrent Power is eyeing distribution businesses in other parts of the country, notably Madhya Pradesh and Bihar.

In Madhya Pradesh, the private power major has submitted a letter of intent for Ujjain, Burhanpur and Dewas. The MP government plans to privatise distribution in the three centres and has invited participation.

Torrent also plans to bid for distribution opportunities in Patna. "We see a great opportunity in both the states and would like to explore them," said Murli Ranganathan, CEO, Torrent Power AEC.

The Maharashtra State Electricity Distribution Company (MSEDCL) is also planning to give out distribution licences in parts of the state. Initial studies were under way, said Sanjay Bhatia, managing director, MSEDCL.

He added that the Bhiwandi model had been recommended by the power ministry to SEBs for reducing their transmission and distribution (T&D) losses and boosting profitability.

Torrent has promised to cut T&D losses in the circle from 45 per cent to 14 per cent and increase collection from the current 62 per cent to 98 per cent. It expects to generate additional revenues of Rs 150-180 crore in the first year itself.

"Power theft will be a major challenge for anyone who gets into the business at Bhiwandi. But, our first concern will be to set the distribution network right and for that we will spend Rs 100 crore in the first six months," said Ranganathan.