Torrent Power has emerged as the frontrunner in the privatization of power distribution in the Union territory of Dadra & Nagar Haveli and Daman & Diu. (DNH & DD)
In a stock exchange filing, Torrent Power said that it has emerged as the highest bidder for acquiring 51 per cent stake in the power distribution company of the said Union territory. Further progress will be subject to further formalities as prescribed in the tender documents.
It may be recalled that the Union power ministry in May 2020 announced its decision to privatize power distribution activities in all the Union territories—Chandigarh, Andaman & Nicobar Islands, Dadra & Nagar Haveli and Daman & Diu, Puducherry, Jammu & Kashmir, and Ladakh—in a phased manner.
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The geographical area of the UT of DNH & DD covers 603 sqkm. The estimated annual electricity sale is expected to be 9000 million kwh, coming through some 1.5 lakh consumers. Torrent Power expects annual revenues of Rs.4,500 crore from power distribution in this UT.
High standards of service
Speaking on the occasion, Samir Mehta, Chairman of Torrent Group stated that “With this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2 per cent of India’s total power consumption. This acquisition will significantly strengthen Torrent’s position as the leading power distribution company in the country with a presence in 12 cities spread across three states and one Union Territory. We are excited to have the opportunity to serve the citizens of Dadra & Nagar Haveli and Daman & Diu and provide them the high standards of reliability and service that Torrent stands for.”
Nearly 4 million consumers
With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion kwh to over 3.8 million customers and cater a peak demand of over 5000 mw. Torrent Power currently distributes nearly 16.66 billion units to over 3.65 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh. It may be noted that Torrent Power is a distribution licensee in some areas and a distribution franchisee in others.
Featured photograph (source: nationsonline.org) shows the clock tower of Silvassa, the capital of the erstwhile UT of Dadra & Nagar Haveli. The UTs of Dadra & Nagar Haveli and Daman & Diu have since been merged into a single UT by the name Dadra & Nagar Haveli and Daman & Diu, popularly abbreviated as DNH & DD.