Power struggle: BEST to share supply for BDD Chawls revamp

Mumbai: In what would be a shocker for the oldest electricity supplier in the island city of Mumbai, the Brihanmumbai Electricity Supply and Transport (BEST) undertaking may have to share power supply to the city’s most ambitious housing redevelopment project – the BDD Chawls project. This could be the first time the BEST, a government undertaking, will not be the sole supplier of electricity to a government residential project.

The Maharashtra Housing and Area Development Authority (MHADA), which is executing the ₹16,000-crore BDD Chawls project, has also approached Tata Power, the only other power distributor in the island city, for the supply of electricity to the redeveloped buildings. Discussions are currently underway with both the BEST and Tata Power.

The BDD Chawls redevelopment is pegged as Mumbai’s biggest-ever residential urban renewal project of the Maharashtra government. Spread across three locations – Worli, Naigaon and N M Joshi Marg in Lower Parel – it envisages the construction of buildings of 22-40 storeys each, on 84 acres of land.

Established in 1905, the electricity division of the BEST has supplied power to the three-storey BDD chawls ever since they were built by the colonial British government between 1920 and 1925. “This is the first time a government agency has approached a private power distributor for its residential projects. We have written to MHADA seeking their view on the matter since the BEST tariff is lower than that of our competitors,” said a BEST official.

On the possibility of contracting two power suppliers for the project, officials from MHADA say “This will not only bring in competition but, in case of an emergency, it will make sure there will not be a power failure in the entire redeveloped vicinities.”

The BEST does not agree with MHADA’s line of reasoning. Sources in the undertaking said the BEST’s network is far more robust than that of its competitor. Being the oldest power distributor in this part of Mumbai, its network covers every corner of the island city, providing excellent last-mile connectivity. Moreover, sources added, since the BEST’s tariff is lower, there is no reason it should not be the sole supplier to this mega-rehabilitation project.

Sources also said that Tata Power, a private power distributor, has been aggressively trying to increase its consumer base, of both residential and commercial customers, and the BEST is not pleased. HT reached out to Tata Power but they refused to comment.

Meanwhile, the BDD Chawls project is almost half complete. Across the three locations, the project will rehabilitate more than 15,000 families from a staggering 195 chawls. The project also has a sale component, where flats will be sold in the open market.

The Worli BDD Chawls are the largest. Covering 22 hectares, the project envisages 33 buildings, of up to 40 storeys each that will rehabilitate close to 9,700 tenements from 121 old chawls. This is in addition to the sale component. At Worli, around 34% of the work is complete. At the other two locations, Naigaon and Parel, work is 50% complete. Together, the Naigaon and Parel components are spread across 12 hectares.