Another private player applies for power distribution licence; state employees blow a fuse

Barely a week after deputy chief minister Devendra Fadnavis assured the striking employees of state-owned power companies that it would contest the entry of Adani Group in Navi Mumbai and Thane, another private player has made an effort to enter the market.

Torrent Power, promoted by Torrent Group, has applied for a parallel distribution licence in Kalyan, Pune and Nagpur.

The unions of state utilities’ employees have raised a red flag, reiterating their claim that the privatisation move will affect the financial health of Maharashtra State Electricity Distribution Company Limited (MSEDCL), which is the primary supplier in these areas.

Mohan Sharma, president of Maharashtra Electricity Workers Federation, said the entry of private firms in revenue-rich areas would also have an adverse impact on consumers.

“MSEDCL supplies electricity in subsidised rates to small-time residential and agriculture consumers by using revenues from these high-end areas. It will no more be possible because of this parallel licensing system,’’ he said.

When contacted, Vishwas Pathak, an independent director of MSEB Holding Company, said the state and MSEDCL would challenge the applications before Maharashtra Electricity Regulatory Commission (MERC).

“The Electricity Act does have provisions of parallel licence in distribution. But the final decision on the applications can only be taken by MERC and the state government has no role in it. But to protect the interests of MSEDCL, we will approach the regulatory authority,’’ he said.

The BJP’s industries cell has, however, welcomed the development and said it will end the monopoly of MSEDCL and will boost competition.

‘’It is necessary to end the monopoly of MSEDCL which has resulted in inefficiency and irregularities in its governance. We welcome the parallel licence in electricity distribution as it will encourage competition and offer efficient service to the consumers,’’ Pradeep Peshkar, state president of the cell, said.

In the next five years, Torrent Power has plans to tap six lakh consumers in Kalyan zone, which comprises Kalyan-Dombivli Municipal Corporation, Vasai-Virar Municipal Corporation, Ulhasnagar Municipal Corporation, Ambernath Municipal Council, and Thane Municipal Corporation (excluding distribution franchisee area). For Nagpur and surrounding areas, its target is three lakh consumers while it aims to cater to six lakh users in Pune and surrounding areas.

Meanwhile, Tata Power is gearing up to enter the electricity distribution sector, starting with three districts. This plan was recently shared in the state advisory board meeting of MERC. The districts are yet to be finalised, an official in the energy department said.

Currently, the state-run MSEDCL is the sole supplier in Maharashtra, except most of Mumbai. Bhandup, Pune, and Kalyan zones are considered revenue-rich areas followed by Nagpur. Pune zone generates ₹1,300- ₹1,400 crore a month while Bhandup zone comprising Navi Mumbai and Thane contributes ₹1,180 crore. Kalyan zone fetches a revenue of about ₹820 crore every month.