Private power utilities belonging to leading industrial groups – Adani, Tata and Torrent – are set to mark their presence in the power distribution space across large areas of Maharashtra currently served by state discom Maharashtra State Electricity Distribution Company Ltd (MSEDCL or Mahavitaran).
In a recent development, Maharashtra Electricity Regulatory Commission (MERC) has invited suggestions from the public before granting parallel distribution licensee status to the three industrial groups for their respective areas applied for.
In the case of Adani and Torrent, MERC has invited suggestions from the public by July 16, 2025 and the public hearing (in virtual mode) is scheduled for July 22, 2025. In the case of Tata Group, comments are expected to reach MERC by July 25, 2025 while the date of public hearing has not yet been fixed.
Torrent Group is seeking distribution licence through Torrent Power Ltd while Adani Group is doing so through a consortium of Adani Electricity Navi Mumbai Ltd (formerly AEML Infrastructure Ltd) and Adani Energy Solutions Ltd (formerly Adani Transmission Ltd).
Adani Group filed its application in 2022 while Torrent Power did so in 2023. Tata Power’s application was made this year.
Torrent and Adani have moved closer to acquiring distribution licensee status as their applications have already been cleared, and much depends on the outcome at the public hearing, and the consequent MERC order. For Tata Power, the application process has newly begun.
The areas that the three groups are seeking for providing distribution services are tabulated below:
How it works
In each of the three cases, the incumbent distribution licensee will be a parallel license holder to MSEDCL. Consumers can therefore choose between MSEDCL or private entity to be their power distribution service provider.
The new distribution licensee will need to set up its own (parallel) distribution infrastructure, including lines, substations, feeders, etc.
The incumbent parallel distribution licensees under discussion will not operate in areas of Mumbai where BEST Undertaking, AEML and Tata Power are currently operational.
Bhandup & Mulund
In the island city of Mumbai, consumers today can choose between BEST and Tata Power, while in the suburbs, there is a choice between Tata Power and Adani Electricity Mumbai Ltd (AEML). It may be mentioned that two areas in Mumbai suburbs – Bhandup and Mulund – are still in the control of MSEDCL. It will therefore be for the first time that there will be a private operator — Torrent Power in this case —operating in these two areas.
Exclusion of DF areas
It may also be noted that in each of the three cases, the area of service would exclude areas in Maharashtra for which MSEDCL has already appointed a distribution franchisee (DF). As of now, Torrent Power is the DF for two areas – Bhiwandi and Shil-Mumbra & Kalwa (SMK) – both falling under Thane district. CESC is also the DF for the Malegaon circle in Nashik district. MSEDCL had appointed a DF for Nagpur but the contract has since been terminated.
Apart from DFs, there are also deemed distribution licensees that are typically developers of special economic zones (SEZ) and serve the units within such zones. An estimated 14 such deemed distribution licensees are currently operational in Maharashtra.
In summary, the parallel distribution licence that Adani, Torrent and Tata are seeking will relate to only those areas where MSEDCL is currently the sole distribution licensee. As discussed in this story, it will exclude areas where existing distribution licensees like BEST Undertaking, AEML and Tata Power are currently in service. It will also keep areas under the distribution franchisee model and deemed distribution licensees out of the purview.
Existing operations
All the three incumbent distribution licensees currently have extensive power distribution operations pan India. Tata Power is amongst the old power utilities in India, serving Mumbai suburbs. It is also a distribution licensee serving north Delhi and entire Odisha through joint ventures with respective state governments. Tata Power is also a DF in Ajmer area of Rajasthan. Torrent Power is a licensee in Ahmedabad & Gandhinagar, Surat and Dahej areas of Gujarat, apart from the newly acquired UT of Dadra & Nagar Haveli and Daman & Diu where it is a licensee through a joint venture with the UT Administration. Torrent Power is also a DF in Maharashtra – Bhiwandi and Shil, Kalwa & Mumbra – apart from Agra in Uttar Pradesh. Adani Group is a distribution licensee in Mumbai through Adani Electricity Mumbai Ltd, and a deemed distribution licensee through AEML SEEPZ Ltd serving SEEPZ SEZ in Mumbai since November 2023.
Key to abbreviations
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