The acquisition is subject to further formalities as prescribed under the tender documents. The bidding for the distribution business of the Union Territory has been undertaken as part of the Government of India's initiative to privatize distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country.
Torrent Power said it 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 a peak demand of over 5000 MW.
Speaking on the occasion, Samir Mehta, chairman of Torrent Group said, “With this acquisition, Torrent will be entrusted with the responsibility to distribute over 25 billion units of power, which is equivalent to around 2% 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 Dadra & Nagar Haveli and Daman & Diu and provide them the high standards of reliability and service that Torrent stands for.”
Torrent Power is a private sector integrated power utility engaged in the business of power generation, transmission and distribution.
On a consolidated basis, Torrent Power's net profit dropped 23.5% to Rs 321.73 crore on a 4.1% decrease in net sales at Rs 2,952.75 crore in Q3 December 2020 over Q3 December 2019.