State infra arm enters power distribution

The state government's industrial infrastructure arm Maharashtra Industrial Development Corporation (MIDC) has decided to foray into distribution and power electricity to ensure that the industry in the state gets round-the-clock supply even during summer.

This year as the shortage of power touched nearly 6,000 Mw in the summer months, power regulator Maharashtra Electricity Regulatory Commission (MERC) ordered an additional day of power cuts in a week for the industrial parks in the state to ensure equitable power cuts across the state.

Following The power regulator's order, the state-owned power distribution Mahavitaran had to buy expensive, naptha-based power at more than Rs 7 per unit to ensure that industries didn't have to face power cuts of two days and so that it doesn't affect the state's image and revenue.

This year there has been a capacity addition by the state-owned Mahagenco of 750 Mw and operationalisation of 2,150 Mw from the Dabhol power plant. The situation is expected to be somewhat better but due to the booming economy, there is also an increase in the demand for power.

So to ensure that we do not land in the same situation and once again get the order from power regulator to cutoff power of the industry for two days, we have decided to foray into power trading and buy 300 Mw of power and supply it to our industrial parks, said chief executive officer of MIDC Rajiv Jalota.

To trade in power, we have applied to the Central Electricity Regulatory Commission and hope to get a licence for the same soon. Besides, to distribute power, we have also signed a franchisee agreement with Mahavitaran, he added.

As a long term solution, MIDC has also decided to set up a mini-thermal power plants of 30 Mw to 50 Mw in five major industrial parks of the MIDC and tenders for the same have also been floated.

We hope to award the contract for these plants in the next three to four months, he said.