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PTI
Mumbai, November 26
Betting big on the emerging opportunities amid growing power consumption in Mumbai’s suburbs, the Adani Group aims to invest Rs 5,700 crore over five years for expanding power distribution in urban areas.
The group will build an entire electricity network in the area to compete with the Maharashtra State Electricity Corporation (MSEDCL) in new areas where they are looking to operate.
In an advertisement in several newspapers in the city on Saturday, Adani Electricity Navi Mumbai (AENM) said it has approached the Maharashtra Electricity Regulatory Commission (MERC) for distribution licenses in areas such as Navi Mumbai, Kharghar, Panvel and Thane districts, as well. with Adani Transmission listed parent.
Adani Group entered power distribution in suburban Mumbai four years ago with the Rs 18,000 crore acquisition of Anil Ambani Group-run Reliance Energy. The Adani Group is also building the Navi Mumbai International Airport worth over Rs 15,000 crore which is expected to start operations in a few years.
The group, whose assets include the Adani port business, is also in contention to distribute power to the country’s largest cargo port JNPT located near Navi Mumbai as well as nearby areas such as Uran, Panvel and the industrial city of Taloja.
The parallel distribution license application submitted a few months ago is the first move by any player under the Electricity Act 2003. The application was accepted by MERC on Friday, after which a public notice was issued.
According to the application released by the group, there is a goal to invest 5,700 million US dollars over a period of 5 years to Develop all the infrastructure and it will take 5 years to build general service capacity in the target area.
According to the officials of the electricity sector, various companies have stopped issuing distribution licenses due to investment. heavily in building the entire network.
Due to the infrastructure and industrial growth in the target geographies, the group expects the usage of Electricity in the area will grow by 8%, which is 9,700 million units per year now.
Compared to this, the growth of financial capital is only 3 percent.
The notification said that Adani Group will serve more than 5 million consumers by the end of 5 years from the granting of permission. .
It is a long process to obtain a power distribution license, as it involves a public consultation that will ultimately give MERC the final say.
A public notice said Adani Transmission owns more than 99 per cent stake in Adani Electricity Navi Mumbai, while nominees of listed companies including Pranav Adani, own more marginal holdings.
Power industry veterans Anil Kumar Sardana, Rohit Soni and Mehul Rupera are the directors of AENM.
Adani Electricity has been distributing power in Mumbai for over four years and competes with Tata Power in the business. It has not been able to increase market share in the areas it serves, and is looking to increase as well.
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