Distribution Franchise business is one area which Torrent Power has been aggressively pursuing as part of its expansion plans. Torrent Power created history by entering into the country’s first distribution franchisee agreement with Maharashtra State Electricity Distribution Company Limited for Bhiwandi Circle in December 2006. The agreement is valid for an initial term of 10 years.

Bhiwandi has a customer base of 1.6 lac in an area spread over 721 square kilometres. Bhiwandi is a major textile hub of western India having one third of the country’s power looms. The estimated demand in the circle is 750 MVA with an annual power consumption of 2400 million units. Almost 55% of the total sales is from the powerloom sector.

The company would undertake all activities relating to distribution of power in the franchise area as an agent of MSEDCL. The company would be supplied bulk power at the rates quoted by it and would collect the revenue from the consumers of Bhiwandi at tariff determined by Maharashtra Electricity Regulatory Commission. The company would leverage its expertise in distribution for providing highly efficient and reliable distribution services coupled with innovative customer services at Bhiwandi.

Bhiwandi franchisee model is a unique public-private partnership and is a role model for distribution reforms in the country.