Leading power utilities stay away from EoI for distribution licence in Mumbai

Tata Power, MahaVitaran, India Power submit their EoI to MERC

Leading power utilities including Torrent Power, Reliance Infrastructure, GMR, GVK, CESC to mention a few have stayed away from filing expression of interest (EoI) for distribution licence in the area currently serviced by Tata Power (distribution) in Mumbai. Maharashtra Electricity Regulatory Commission (MERC) has however, received only three EoI from Tata Power, Maharashtra State Electricity Distribution Company (MahaViataran) and Kolkata based India Power Corporation. MERC had invited EoI as Tata Power's licence period is valid up to August 15.
 
MERC official told Business Standard ''MERC will conduct technical scrutiny of these EoI. Tata Power, MahaVitaran and India Power Corporation will be given a casual hearing as per the section 15 of the Electricity Act, 2003. They will have to submit their plans to distribute power and put in place necessary network. Thereafter, these companies will have to submit financial bids. Subsequently, MERC will take a final call on award of distribution licence.''

 
Industry sources said laying distribution network is mandatory for the bidder and it is time consuming exercise in Greater Mumbai. Till the distribution network is laid the successful bidder is allowed to use the existing network of Tata Power and Reliance Infrastructure after payment of due charges.
 

MahaVitaran has a consumer base of 21.5  million consumers largely in rest of Maharashtra. MahaVitaran official said ''MahaVitaran is one of the largest utilities by size and by its operation in the country with employee strength of 70,000 . Besides, MahaVitaran has entered into long term power purchase agreements for the purchase of over 19,000  MW. Currently, MahaVitaran is supplying power in Mulund and Bhandup in north east Mumbai.'' The official informed that MahaViataran has 2,680  sub stations and 4,71,766  distribution transformers.

 
On the other hand, Tata Power distribution has 4,50,000  consumers in its area of operation of about 475  sq km in Mumbai. Of its 4,50,000  consumers , 87%  are residential consumers, 10.67% commercial and 1.82 % industrial consumers. Tata Power (distribution) has already launched its plan to increase its distribution network across the city.
 
The energy input to the distribution system during 2012-13  had been over 6,650  million units. The distribution loss was reported at 1.1  per cent during the same fiscal.
 
Further, the India Power Company currently generates 12 MW from its coal-based thermal power plant at Dishergarh and it has around 100  MW of wind assets in operation in Rajasthan, Gujrat and Karnataka. The company has also developed a 2 MW grid connected solar power plant along with West Bengal Green Energy Development Corporation Ltd in Asansol.

In the conventional sector, the Company is setting up a 450  MW thermal power plant in Haldia, West Bengal and has also conceived thermal power projects in Bihar, Gujarat and Madhya Pradesh. The company intends to scale its power generation portfolio up to 10,000 MW in the coming years.