Torrent Power eyes power distribution in Nagpur city

 

 

 

If everything goes smoothly, then by August onwards, TPL might start operations in the second capital of the State  

 

Heating up the game in lucrative power distribution sector, Torrent Power Limited (TPL) is eyeing license from Maharashtra Energy Regulatory Commission (MERC) for supplying power in the city. The move signals near end to monopoly of State-run Maharashtra State Electricity Distribution Company Limited (MSEDCL) in the second capital of the State. If everything goes smoothly, then by August onwards, TPL might start its operations in the second capital of the State, as MERC has set the deadline of last week of July for deciding on objections of citizens, if any to TPL’s intention to start power distribution. Prior to TPL, the city had witnessed private agency in power distribution in mid-2000.

 

That time, MSEDCL was happy to part with three of its divisions in city, Civil Lines, Gandhibagh and Mahal, as the transmission and commercial losses here were quite heavy. However, the franchise model did not work well for long and after few years, the company folded its operations. Meanwhile, MERC has published a notice in a local newspaper that mentioned about application of TPL in year January 2023 to enter the power distribution sector within the limits of NMC. The notice about TPL’s intention was published that time in local newspapers, inviting suggestions and objections from the citizens.

 

After going through the process, MERC granted a tentative nod to TPL, a utilities company having registered office in Ahmedabad. After pursuing the application of TPL, the regulator has again sought suggestion and objections from citizens of city. If all goes well, the decks would be cleared for TPL to set out on path for entering power distribution by end of July or early August. MERC, in its notice, mentioned that, it would hold e-hearing on July 23, 2025, to decide on objections if any as to opposing the grant of distribution license to TPL in city. Along with Nagpur, TPL has also applied for distribution license in Vasai-Virar and Pune city while another notice is of Adani Group company for Thane, Navi Mumbai, Panvel, Khargar, Taloja and Uran.

 

Banking upon strong consumer demand, the private players in power sector are keen to enter distribution sector. Another factor that is driving the companies’ interest is reforms in the offing in electricity sector, ranging from pre-paid meters and regulator’s keenness to tap companies engaged in generation to take over role of distribution. Even MSEDCL is keen to tap the lucrative suburban Mumbai market and has applied to MERC seeking permission to distribute power. The application is at primary stage and it will take further time for the process to complete before the State-run company can get foothold in the capital city. Nagpur Circle, comprising Nagpur and Wardha district in total, has 18.82 lakh consumers of which maximum are in second capital of the State.