Torrent Power Bids Rs 555 Cr to Take 51% in D&N Haveli, Daman & Diu Discoms

Torrent Power has emerged as the highest bidder for the sale of 51 percent stake in Discoms in the UT of Dadra & Nagar Haveli and Daman & Diu

Torrent Power, the Rs 13,641 crore integrated power utility of the Torrent Group has announced that it has emerged as the highest bidder for the sale of 51 percent stake in the Power Distribution Companies (Discoms) in the UT of Dadra & Nagar Haveli and Daman & Diu.

The acquisition of 51 percent stake in the power distribution company by Torrent is subject to further formalities as prescribed under the Tender documents. The bidding for the Distribution Business of the UT had been undertaken as part of the Government of India’s initiative to privatise distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country.

India seeks to privatise the Discoms for eight UTs for an enterprise value of around USD 700 million. Unlike the Discoms run by state governments, discoms for the Union territories are administered by the Centre.

According to people aware of the developments, the firm submitted a massive bid of Rs 555 crore to take up the majority share in the Discoms. Beating ReNew Power Ventures and Adani Group, with each bidding around Rs 450 crore and Kolkata-based CESC that bid around Rs 300 crore in the sale process run by SBI Capital Markets.

Torrent Power currently distributes nearly 16.66 billion units to over 3.65 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in  Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh. With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater to a peak demand of over 5000 MW. 

Samir Mehta, Chairman of Torrent Group stated that “with this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2 percent of India’s total power consumption. This acquisition will significantly strengthen Torrent’s position as the leading Power Distribution company in the country with a presence in 12 cities spread across 3 States and 1 Union Territory. We are excited to have the opportunity to serve the citizens of the two UTs and provide them the high standers of reliability.”

The firm claims that it is well poised to participate in the new opportunities coming up in renewable generation, transmission and privatization of state-owned distribution circles.