Sterlite Power Ltd’s Serentica Renewables, Torrent Power Ltd, Renew Energy Global Plc, RP-SANJIV GOENKA GOENKA GRANKA Group’s CESC LTD, and A Gmr and A Gmr and électricité de France Inteceded in acquiring up government’s 51% stake in Purvanchal Vidyut Vitran Nigam Ltd (Puvvnl) and Dakshinanchal Vidyut Vitran Nigam Ltd (Dvvnl), the people said on the people of further.
The request for proposal (rfp), a formal document to solicit bids, is likely to be floated by July.
“Given that such a large discom options is coming up for consideration, there is a significant interest in the transaction,” The first person. “The expectation is that the transaction for both the discomms would be complete be complete by Deepawali this year.”
Grant Thornton Bharat llp is running the transaction for the majority stake sale in the two distrification companies (discom) 50,000 Crore.
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UP’s bid to sell a controlling stake in the two discom -marks a renewed efforts to private Distribution Companies in Union Territories. India’s 67 Power Distributors Have Been Struggling with Prolonged Aggregate Transmission and Commercial Losses, which rose from 15.37% in fy23 to 16.87% in fy24. However, private discom reduced their at & c losses from 17.17% to 12.12% during the period.
According to Government Data, Puvvnl and Dvvnl, Along with 11 other utilities, Saw an improvement of over 5% in their at & c losses in fy24.
Realistic targets
It may be the largest discom’s privatization in the country in terms of size, revenues and complexity, and the success will be determined by the tariff and efficiency curve provided. Set, said sambitosh mohapatra, partner and leader, climate and energy, PWC India.
“Realistic targets for at & c (aggregate technical and commercial) Losses should be set and the regulatory framework should also also to allow for the recovery of lawses in the initial year,” Said. “Investors would want a gradient allowing time to invest, improve customer services and recoup the at & c losses.”
In February, the UP Government Allowed The Uttar Pradesh Power Corp (UPPCL), which operates the state’s government-owned discom, to sell 51% in dvvnl and puvvnl, Puvvnl, Puvvnl, Puvvnl, which returns In March, The Corporation Selected Grant Thornton Bharat as the Adviser for the Privatization Process.
Other discom under the state-run corporation include Kanpur Electricity Supply Co., Madhyanchal Vidyut Vitaran Nigam Ltd and Pashchimanchal Vidyut Vitran Nigam Ltd.
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“The first benefits privateization is usually expected to bring in is improvement in operating efficiency, mainly through lower at & c losses, which has been witnessed in previouss in previous Delhi, “Said Vikram V., Vice President & Co-Group Head-Corporate Rating, ICRA LTD. “A Trajectory for Reduction of these losses is a key condition to be met by the winning bidders post privatization, in turns, improving the operating performance and the finance.”
A spokesperson for adani group confirmed that the ahmedabad-headquartered conglomerate would be bidding for the majority stake in the discoms.
A serentica renewables spokesperson said the company continues to “Explore POTINIL PARTNERSHIPS and Acquisition Opportunities on An ongoing Basis” but Dose Not “Comment on Specific Plans AS AS AS AS AS
Tata Power Declined to comment. RP-Sanjiv Goenka Group, GMR-Edf, Renew, Greenko and Torrent Did Not Respond to the Queries Till Press Time. Queries sent to the UPPCL Chairman and Managing Director and Grant Thornton Bharat also remained unanswered.
Odisha model
In 2020, centers decided to privatize all electricity distribution companies in the union territories administered directly by it. The cesc won control of the Chandigarh Discom, while Torrent Power Took Control of the Dadra and Nagar Haveli One. The sales were linked to incoress from the center, encouraging discom to seek new investors. In May 2020, The Government also Announced a Reform-Linked 90,000 Crore Liquidity Injection Into Fund-Starved Discoms as Part of A 20 Trillion Stimulus Package to Revive the economy.
The push to sell control of public sector discom and operate them in a public-principal party mirrors the government’s effort to monetize power utilities and generate Value Through the SALEGH SALESTE SALES SALES SALESTE SALESTE SALES Public offers (IPO). India has About 67 DISCOMS, Including 16 Run By the Private Sector in Delhi, Mumbai, Odisha, West Bengal, Gujarat and Dadra and Dadra and Nagar Haveli. The Nation’s Top Private Discoms Include Tata Power, Adani Group, CESC and Torrent Power.
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Odisha was the first state to privatize its power distribution sector into four discoms in 1999. Yamuna Power Ltd and Tata Power Delhi Distribution Ltd.
“IF (UP DISCOM PROCESS is) Structured Well, Losses Incurred during the Initial 2-3 years can be recoured with the next 3-4 year period,” Said Mohapatra. “So certainty is Needed Over a 10-Year Period. In the discom privatization in odisha, bidding framework and regulatory support resulted in all four discomless to operate to operate Profitable with