In a public announcement dated June 23, MERC expressed its satisfaction with Torrent Power’s proposal to serve as a parallel power supplier in these essential areas.
This development represents the initial move for Torrent Power to function as an alternative electricity distributor alongside current DISCOMs. The proposed tariffs by the company are also marginally lower than the existing rates in these regions, making it an appealing choice for consumers.
This progress follows a prolonged wait—Torrent Power submitted its petition in December 2022. The proposal has been under review for more than two and a half years.
The company has earmarked a capital outlay of approximately ₹15,000 crore over five years to establish transformers, distribution lines, substations, and other related infrastructure. Torrent Power anticipates achieving a return on equity (RoE) of 15.5% from this investment.
MERC is slated to review Torrent Power’s final petition on July 22, which will decide if the company can fully commence operations as a parallel electricity distributor.
Brokerage firm JM Financial characterized the regulatory approval as value-enhancing and noted that it could open up a new avenue of growth opportunities for Torrent Power.
(Edited by : Ajay Vaishnav)
