Torrent Power has seen a year-on-year reduction in T&D losses across its licensed and franchisee area in FY24.
According to an analysis by T&D India based on an investor presentation filed by Torrent Power on stock exchanges, overall T&D losses of Torrent Power dropped to 4.79 per cent in FY24 from 4.90 per cent in FY23. This aggregate T&D loss has been calculated as an average of T&D losses in individual areas, weighted by the quantum of electricity purchase in that area.
Licensee areas
Except for Ahmedabad & Gandhinagar, T&D losses in Torrent Power’s licensee areas were lower in FY24 as compared with those in FY23. In this area, losses rose to 4.16 per cent in FY24 from 3.74 per cent in FY23. In Surat, losses declined from 3.17 per cent in FY23 to 2.77 per cent in FY24, despite a 5.6 per cent growth in electricity purchase.
The best performance was seen in the Dadra Nagar Haveli and Daman & Diu (DNHDD) licensee area where losses dropped to 1.58 per cent in FY24 from 1.59 per cent in FY23. Electricity purchase in DNHDD rose by little over 4 per cent in FY24.
It is noteworthy that DNHDD is today Torrent Power’s biggest area in terms of electricity purchase. At 10,363 MU in FY24, electricity purchase in DNHDD accounted for one-third of Torrent Power’s total electricity purchase across all its seven licensed and franchisee areas.
In fact, the DNHDD area, with low losses and high electricity purchase, had a big positive impact on Torrent Power’s overall T&D losses across all its licensed and franchisee distribution areas.
Franchisee areas
Losses in the Bhiwandi franchisee area reduced further to 9.64 per cent in FY24 from 10 per cent in FY23. In the Agra area in Uttar Pradesh, losses dropped further to 9.16 per cent in FY24 from 9.49 per cent in FY23.
In the Shil-Mumbra-Kalwa (SMK) area in Maharashtra, which was taken over by Torrent Power in March 2020, T&D losses have seen a clear declining trend over the past three years – dropping from 40.48 per cent in FY22 to 33.48 per cent in FY23, and now to 29.97 per cent in FY24. These losses are expected to come down to 12 per cent in the coming years. Torrent Power is expected to undertake capital expenditure of Rs.300 crore in the SMK area, during the franchise period, which is up to February 29, 2040.
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(Note: The above table does include the Dholera Special Investment Region (SIR), a licensed area of Torrent Power, as commercial operations are yet to begin.)
