Adani and Torrent eye electricity supply licences in Mumbai Metropolitan Region, gear up to compete with state power utility MSEDCL

Time of India

16 hours ago

Mumbai: The monopoly of state power utility MSEDCL in Mulund-Bhandup, Thane, Navi Mumbai, Kalyan, Vasai, and other parts of the Mumbai Metropolitan Region (MMR) faces potential competition.
Tired of too many ads? go ad free now
Besides Tata Power's recent parallel distribution licence application, both Adani Electricity Navi Mumbai Ltd (AENML) and Torrent Power await a public hearing at MERC on July 22 for licence requests in the MMR.
AENML, a subsidiary of Adani Energy Solutions, aims to distribute power in Mulund, Bhandup, Thane, Navi Mumbai, Panvel, Kharghar, Taloja, and Uran. They propose a Rs 5,700-crore investment to establish their distribution network within five years.
Torrent Power's distribution plans encompass Vasai-Virar and vicinity, civic areas of Kalyan-Dombivli, Ulhasnagar, Thane (excluding distribution franchisee areas), and Ambernath, as well as Palghar.
Tata Power's recent MERC application seeks a parallel distribution licence for Mulund-Bhandup, parts of Kanjur-Powai, Thane, Navi Mumbai Municipal Corporation, Panvel City Municipal Corporation (PCMC), the PCMC-JNPA corridor, and Pune region, including Pune City, Haveli, Maval, Mulshi, and Khed talukas.
It also filed separate applications for a parallel licence in Chhatrapati Sambhaji Nagar, Badnapur, Jalna, Waluj MIDC, Nashik, Sinnar, Igatpuri, and Trimbak talukas.
AENML projects serving five lakh new consumers, while Torrent Power targets six lakh electricity users across MMR within five years, sources said. Experts said that while this could comprise new consumers, one cannot rule out the possibility of a section of existing 'subsidising' consumers migrating to private players if the latter gets a licence in the coming months.
Tired of too many ads? go ad free now
A power expert said these 'subsidising' consumers included those from industry and commercial categories as well as residential users whose monthly consumption was above 300 units. "The subsidised consumers in lower categories may stay with MSEDCL, but the subsidising consumers in the high-end categories may have an option to switch if there is a competitive tariff," he pointed out.
Power expert Ashok Pendse said there were three key factors that constituted consumer expectations.
"First, the tariff should be competitive or lower than the existing power utility. Second, unlike the periodic maintenance shutdowns or power cuts by MSEDCL, if the private players assure reliable 24x7 electricity supply, they could woo more consumers. The third and most important factor would be the customer care centres and the service provided to consumers — both online and offline," he added.
In the past, MSEDCL workers' unions went on strike to oppose the entry of the Adani Group.
Sources in the power industry said the possibility of opposition from activists and union workers in the coming weeks against the "attempt for privatisation" cannot be ruled out.
Torrent Power Ltd supplies to more than 40 lakh consumers in Ahmedabad, Gandhinagar, Surat, and Dahe SEZ in Gujarat and in Bhiwandi, Shil, Mumbra, and Kalwa in Maharashtra and Agra in Uttar Pradesh, among other areas in the country.
Mumbai: The monopoly of state power utility MSEDCL in Mulund-Bhandup, Thane, Navi Mumbai, Kalyan, Vasai, and other parts of the Mumbai Metropolitan Region (MMR) faces potential competition.
Besides Tata Power's recent parallel distribution licence application, both Adani Electricity Navi Mumbai Ltd (AENML) and Torrent Power await a public hearing at MERC on July 22 for licence requests in the MMR.
AENML, a subsidiary of Adani Energy Solutions, aims to distribute power in Mulund, Bhandup, Thane, Navi Mumbai, Panvel, Kharghar, Taloja, and Uran. They propose a Rs 5,700-crore investment to establish their distribution network within five years.
Torrent Power's distribution plans encompass Vasai-Virar and vicinity, civic areas of Kalyan-Dombivli, Ulhasnagar, Thane (excluding distribution franchisee areas), and Ambernath, as well as Palghar.
Tata Power's recent MERC application seeks a parallel distribution licence for Mulund-Bhandup, parts of Kanjur-Powai, Thane, Navi Mumbai Municipal Corporation, Panvel City Municipal Corporation (PCMC), the PCMC-JNPA corridor, and Pune region, including Pune City, Haveli, Maval, Mulshi, and Khed talukas.
It also filed separate applications for a parallel licence in Chhatrapati Sambhaji Nagar, Badnapur, Jalna, Waluj MIDC, Nashik, Sinnar, Igatpuri, and Trimbak talukas.
AENML projects serving five lakh new consumers, while Torrent Power targets six lakh electricity users across MMR within five years, sources said. Experts said that while this could comprise new consumers, one cannot rule out the possibility of a section of existing 'subsidising' consumers migrating to private players if the latter gets a licence in the coming months.
A power expert said these 'subsidising' consumers included those from industry and commercial categories as well as residential users whose monthly consumption was above 300 units. "The subsidised consumers in lower categories may stay with MSEDCL, but the subsidising consumers in the high-end categories may have an option to switch if there is a competitive tariff," he pointed out.
Power expert Ashok Pendse said there were three key factors that constituted consumer expectations.
"First, the tariff should be competitive or lower than the existing power utility. Second, unlike the periodic maintenance shutdowns or power cuts by MSEDCL, if the private players assure reliable 24x7 electricity supply, they could woo more consumers. The third and most important factor would be the customer care centres and the service provided to consumers — both online and offline," he added.
In the past, MSEDCL workers' unions went on strike to oppose the entry of the Adani Group. Sources in the power industry said the possibility of opposition from activists and union workers in the coming weeks against the "attempt for privatisation" cannot be ruled out.
Torrent Power Ltd supplies to more than 40 lakh consumers in Ahmedabad, Gandhinagar, Surat, and Dahe SEZ in Gujarat and in Bhiwandi, Shil, Mumbra, and Kalwa in Maharashtra and Agra in Uttar Pradesh, among other areas in the country.