Torrent Power witnessed an overall reduction in distribution losses across its licensed and franchised areas during the first half (H1: April to September) of FY24.
According to an investor presentation filed by Torrent Power on stock exchanges, the company saw lower distribution losses in three of its licensed areas – Surat, Dahej and DNH&DD (see table). However, in the Ahmedabad area, distribution losses were higher at 6.30 per cent in H1 of FY24 as against 5.57 per cent in H1 of FY23.
Incidentally, DNH&DD is today Torrent Power’s largest licensed area with electricity purchase of 2,678 MU in Q2 (July to September) of FY24, surpassing Ahmedabad with 2,430 MU. The DNH&DD area was formally taken over on April 1, 2022 through a joint venture “Dadra & Nagar Haveli and Daman & Diu Power Distribution Corporation Ltd”, in which Torrent Power holds 51 per cent equity and the Union territory administration, the remaining 49 per cent.
With respect to franchised distribution operations, a marked reduction in distribution loss was seen in the newly-acquired SMK (Shil, Mumbra & Kalwa) area. Losses dropped from 35.32 per cent in H1 of FY23 to 30.69 per cent in H1 of FY24. The SMK franchised area, spanning 65 sqkm and with a peak demand of 146 MVA in FY23, was formally taken over by Torrent Power on March 1, 2020 under a competitive bidding process. Torrent Power expects to invest Rs.300 crore in the SMK area, spread over the licence term, which is up to February 29, 2040. The reported AT&C losses in this area ruled at 47 per cent in FY17 and the same dropped to 33 per cent in FY23. Over the licence period, these losses are expected to come down to 12 per cent.
The Dholera Special Investment Region (SIR) is an important licensed area where Torrent Power expects to invest Rs.1,200 crore over the next ten years to cater to a peak demand of around 425 MVA. A major project on the Delhi Mumbai Industrial Corridor (DMIC), Dholera SIR, where operations have yet to begin though, is envisaged to be vast industrial cluster covering around 920 sqkm.
Also read: Torrent Power Sees Reduction In Distribution Losses
Electricity Purchase
Across all its licensed and franchised area, Torrent Power purchased electricity amounting to 8,343 MU in Q2 (July to September) of FY24, 6.5 per cent higher than the 7,832 MU purchased in the same period of FY23.
