Wednesday November 11, 05:40 PM

INTERVIEW - Maharashtra utility to expand, award projects

By Ketan Bondre

MUMBAI (Reuters) - Maharashtra State Electricity Distribution Co (Mahadiscom) is planning to award projects worth 16.45 billion rupees under an infrastructure augmentation plan, a top official said on Wednesday.

"We are strengthening the distribution network," of the state that presently carries 10,000 MW of power, Managing Director Ajoy Mehta told Reuters in an interview.

"We are now planning to pump in 20,000 MW into the grid by 2012, to make Maharashtra power-sufficient," said Mehta, adding the projects pipeline was part of this capacity build-up.

The projects will be awarded within a month as the tendering is underway, he added.

State-run Mahadiscom's 106 billion rupees plan to expand as well as replace its distribution network will have private companies as vendors or contractors, he said.

Companies like KEC International, Kalpataru Power Transmission, ICSA India, Larsen and Toubro, Nagarjuna Construction and Jyoti Structures are already implementing projects worth 90 billion rupees.

FRANCHISEE MODEL

The utility was a pioneer in India to hire a private player for distribution in 2007. Torrent Power was selected to cut leaks and theft of power, measured in terms of aggregate technical and commercial (AT&C) losses, in Bhivandi, a town outside Mumbai.

"We are looking at replicating the Bhiwandi model. We are also looking at different models like micro franchising," he said. Micro-franchising would involve only theft prone areas of the towns being given to franchisees.

Mahadiscom's AT&C losses is at 21 percent and utility wants to bring it down to 18 percent in fiscal 2009/10, he said.

The utility, whose monthly revenue is close to 20 billion rupees, is also looking to sign up long term power purchase agreements for 2,000 MW with power producers via competitive bidding, he added.

(Editing by Harish Nambiar)

(For more news on Reuters Money visit http://www.reutersmoney.in)