Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has appointed input-based distribution franchisees for two circles – Malegaon and Shil, Mumbra & Kalwa.
The Malegaon mandate has been clinched by CESC Ltd, an RPG-Sanjiv Goenka company. In a stock exchange communication, CESC said that it has received a letter of intent from MSEDCL declaring it the successful bidder for the Malegaon Municipal Corporation area under the Malegaon circle.
In an independent announcement, Torrent Power said that it has emerged winner as the input-based distribution franchisee for the Shil, Mumbra & Kalwa sub-divisions under the Thane Urban Circle.
In both the cases, the tenure of the appointment will be 20 years.
The Shil, Mumbra & Kalwa sub-divisions have a consumer base of 2.15 lakh. In FY17, considered as the base year, the ATC losses for the given region were estimated at 47 per cent. The quantum of electricity supplied was 677 million kwh while net sales were only 376 million kwh.
Torrent Power’s obligations under the distribution franchisee agreement (DFA) will be to distribute electricity to the consumers on behalf of MSEDCL in accordance with applicable law, regulations and directives of MERC. TPL is expected to upgrade the infrastructure, improve quality of supply and lower AT&C losses; whereas MSEDCL is obliged to supply input power at annual input rates as agreed under the DFA.
It may be mentioned that in January 2007, Torrent Power was appointed DF for the loss-making Bhiwandi circle. This represented Maharashtra’s first experiment with private sector participation in the power distribution sector. Following the impressive turnaround staged by Torrent in Bhiwandi, the the ten-year contract was extended for another ten years, up to January 2027.