Emerges as highest bidder for power distribution in Agra

After successfully undertaking power distribution in Maharashtra, Ahmedabad-based Torrent Power will expand in Uttar Pradesh. The company has emerged as the highest bidder for power distribution in Agra, after winning the bid for Kanpur. The financial as well as technical bids were opened on Wednesday. Though UP Power Corporation Ltd (UPPCL) is still to announce the winner, sources said that the company has proposed rate of Rs1.95 per unit, 10 paise higher than Reliance and 12 paise higher than Jamshedpur Utilities abd Services Company Ltd (JUSCO).

In order to put in place effective electricity supply and qualitative transformation of transmission and distribution system and customer services, UPPCL is implementing input-based distribution franchisee system in urban areas. It had invited bids in this regard for Kanpur, Agra, Bareily, Gorakhpur and Moradabad in the first phase, while in the second phase bids are invited for Allahabad, Varanasi, Meerut and Aligarh. "Though, bids were opened on Wednesday, the result is still awaited for Agra. We would be announcing it within this week," said an official from UPPCL.

He informed that bids for Bareily would be reviewed, while the date for Gorakhpur and Moradabad has been extended to March 25. The bid for the cities in the second phase has been given the deadline of March 25 as well. Torrent official however refused to comment on the development.

Torrent Power has already been appointed as the franchisee for Kanpur and a letter of intent has also been issued to them. For Kanpur, Torrent had quoted rate of Rs2.17 per unit, while JUSCO had offered Rs2.16 per unit.

Kanpur Electricity Supply Company Ltd (KESCO) is a subsidiary of UPPCL and has customer base of close to five lakh. Torrent will distribute power to consumers of Kanpur for 20 years on the rate to be decided by UP Electricity Regulatory Commission. Earlier the company was appointed by Maharashtra State Electricity Board as distribution franchisee for Bhiwandi.

To start Sugen plant in March

Torrent Power Ltd is all set to start its Sugen power plant near Surat next month. The first phase of 376 mega watt plant started its trial production in November, 2008 and the second phase started its trial production one month later. According to the sources, the trial production of the first phase has been highly positive and once the commercial production starts, next two phases will take less time for commencement. The company has tied up with ONGC for fuel supply. The 1,147.5 MW gas-based combined cycle power plant is set up at a cost of Rs3,100 crore for meeting the power deficit in the western region in general and for meeting the power requirement of its Ahmedabad, Gandhinagar and Surat distribution areas.

Darshan Mankad/ DNA-Daily News & Analysis Source: 3D Syndication