Crompton Greaves Limited (CG), a private sector player in equipment for power generation and transmission, has informed that the company is seriously considering partnering with the Government of Gujarat in setting up a distribution network in the state.
Highlighting the need of private participation in the power distribution, Sudhir Trehan, managing director Crompton Greaves said that the company may join in a partnership with Gujarat government in setting up a distribution network in different regions of the state.
"Looking at the successful private sector power distribution models operational in other parts of the country, the Gujarat government is understood to be working towards partnering with private players in the power distribution area. If that happens, we are interested to partner in it," Trehan told Business Standard.
Crompton Greaves is a leading multi-national engineering corporation, providing end-to-end solutions in the management and application of electrical energy.
Trehan further mentioned that private participation had reduced distribution loss significantly in places including Delhi, Bhiwandi in Maharashtra besides several others. According to him, the same could be replicated in parts of Gujarat as well.
Speaking at the a fourth international conference on India Energy Conclave 2010 organised by Confederation of Indian Industries (CII) in Ahmedabad recently, Trehan stressed upon the need of innovation in fuel cost management in power sector, transmission and distribution (T&D), equipment and government policies.
Recognising the need of private participation in power distribution, Ravi Sharma, chief executive officer, Adani Power Ltd mentioned that there was a need to set up a franchisee model for power distribution in the state.
"In order to reduce distribution losses in power sector, there is a need for a partnership between government and private players via franchisee model," Sharma said.
The state already has successful private sector distribution models in Surat and Ahmedabad. This could boost prospects for other regions to have private participation as well, he added.
Currently, Gujarat has two power utilities operational under private holdings namely, Surat Electricity Company Ltd and Ahmedabad Electricity Company Ltd, both being controlled by Ahmedabad-based private player, Torrent Power Ltd.