Kolkata, April 24:
Reliance Infrastructure Ltd may submit bids for retail power distribution in 11 cities in Uttar Pradesh and Bihar, according to company sources.
The company feels that its experience in reducing power theft in parts of Delhi may come handy in reducing the aggregate technical and commercial (AT&C) losses in these circles.
"We would look at each of the opportunities that come up and evaluate details before committing ourselves," Mr Lalit Jalan, CEO and director of Reliance Infra, told Business Line in an e-mailed response.
Reliance Infra is currently distributing power to 6.5 million customers in Delhi and Mumbai. According to the company, Bihar and Uttar Pradesh recently invited bids for franchise power distributors in a number of circles. Maharashtra is also expected to open five circles for retail power distribution.
While Uttar Pradesh has offered Meerut, Varanasi, Allahabad, Aligarh, Gorakhpur, Moradabad and Bareilly on the block, Bihar opened Patna, Bhagalpur, Muzaffarpur and Gaya circles.
The franchise operator will be responsible for customercare, metering, network maintenance billing, revenue collection and associate responsibilities including reduction of AT&C losses. The franchise will work under the direct monitoring and guidance of the state power distribution companies. The latter would also be responsible for sourcing the power for distribution through the franchise distributorsBusiness risk
On queries underlining the reportedly high incidence of pilferage in both Bihar and Uttar Pradesh and the possible business risks in entering retail power distribution in these States, Mr Jalan said that the company was capable of handling such issues.
"Delhi also had a couple of notorious areas where theft levels were very high. However, we were able to augment the network and reduce AT&C losses in areas like Najafgarh and Chandni Chowk," he said.
Savings
Overall, the company claims to have reduced AT&C losses in Delhi circle from as high as 55 per cent in 2002 to less than 20 per cent as on date. "The Government of Delhi is currently saving Rs 5,000 crore a year on account of reduction in AT&C losses," Mr Jalan said.
Reliance Infrastructure Ltd may submit bids for retail power distribution in 11 cities in Uttar Pradesh and Bihar, according to company sources.
The company feels that its experience in reducing power theft in parts of Delhi may come handy in reducing the aggregate technical and commercial (AT&C) losses in these circles.
"We would look at each of the opportunities that come up and evaluate details before committing ourselves," Mr Lalit Jalan, CEO and director of Reliance Infra, told Business Line in an e-mailed response.
Reliance Infra is currently distributing power to 6.5 million customers in Delhi and Mumbai. According to the company, Bihar and Uttar Pradesh recently invited bids for franchise power distributors in a number of circles. Maharashtra is also expected to open five circles for retail power distribution.
While Uttar Pradesh has offered Meerut, Varanasi, Allahabad, Aligarh, Gorakhpur, Moradabad and Bareilly on the block, Bihar opened Patna, Bhagalpur, Muzaffarpur and Gaya circles.
The franchise operator will be responsible for customercare, metering, network maintenance billing, revenue collection and associate responsibilities including reduction of AT&C losses. The franchise will work under the direct monitoring and guidance of the state power distribution companies. The latter would also be responsible for sourcing the power for distribution through the franchise distributorsBusiness risk
On queries underlining the reportedly high incidence of pilferage in both Bihar and Uttar Pradesh and the possible business risks in entering retail power distribution in these States, Mr Jalan said that the company was capable of handling such issues.
"Delhi also had a couple of notorious areas where theft levels were very high. However, we were able to augment the network and reduce AT&C losses in areas like Najafgarh and Chandni Chowk," he said.
Savings
Overall, the company claims to have reduced AT&C losses in Delhi circle from as high as 55 per cent in 2002 to less than 20 per cent as on date. "The Government of Delhi is currently saving Rs 5,000 crore a year on account of reduction in AT&C losses," Mr Jalan said.
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