Torrent Power has reported a significant drop in T&D losses in the second quarter (July to September) of FY22, across its distribution licensee and franchisee business.
In an investor presentation filed on stock exchanges, Torrent Power, apart from reporting lower T&D losses in Q2 (July to September) of FY22, also said that there was a significant reduction in provision for doubtful debts in distribution franchisee business, which was severely impacted the comparative quarter of FY21 due to the Covid 19 pandemic.
Torrent Power also saw an increase in electricity demand mainly in commercial and industrial (C&I) customers during Q2 of FY22, in the distribution franchisee business.
The encouraging performance in the second quarter also resulted in an overall improvement in T&D losses in the first half (H1, April to September) of FY22. (See table)
Apart from the areas mentioned in the table, Torrent Power is also the distribution licensee for the Dholera Special Investment Region (SIR). Torrent Power has planned an investment of Rs.1,200 crore over the next ten years to cater to a demand of around 425 MVA. The licensee area is spread over 920 sqkm, and the distribution licensee mandate is valid up to 2044.
Also read: Torrent Power Cuts T&D Losses In Q1 Of FY22
Torrent Power has also emerged as the successful bidder for 51 per cent stake in licensed distribution operations in the Union Territory of Dadra & Nagar Haveli and Daman & Diu (DNH&DD). The letter of award is awaited as the matter is currently sub-judice.
In the Shil-Mumbra-Kalwa (SMK) area, where Torrent Power took over as distribution franchisee in March 2020, an investment of Rs.300 crore has been planned. Of this, Rs.150 crore will be spent in the first five years. The AT&C losses in FY17 stood at 47 per cent, and these are expected to come down to 12 per cent in the next 15 years.
Featured photograph shows file picture of a substation under construction by Torrent Power at the Dholera Special Investment Region.