Torrent Power on Saturday said it emerged as the highest bidder for the sale of 51% stake in the power distribution company in Dadra & Nagar Haveli and Daman & Diu. Sources said Torrent Power quoted a winning price of Rs 555 crore.
The company outbid firms like Adani Transmission, CESC and ReNew Power who submitted price bids, the sources said. “The winning bid is three times the reserve price of Rs 151 crore,” they said.
Dadra Nagar Haveli and Daman & Diu have a high concentration of industrial and commercial units constituting over 90% electricity consumers.
The acquisition of 51% stake in the power distribution company by Torrent is subject to further formalities as prescribed under the Tender documents, an official statement said.
These are the first power distribution companies among the Union Territories that are proposed to be privatised under the government’s Atma Nirbhar Bharat scheme. Privatisation of electricity discom of Chandigarh has been slowed due to opposition from various sections.
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 for peak demand of over 5000 MW.
Torrent Group chairman Samir Mehta 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 three states and one 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,” he said.
The company has a debt: equity ratio of 0.79 as at December 31, 2020, and net debt to EBITDA ratio of 2.18 for 2019-20. “It is well poised to participate in the new opportunities coming up in the sector in renewable generation, transmission and privatisation of state-owned distribution circles,” the statement said.
