The RP-SG Group, which has won the power distribution franchise for Malegaon from Maharashtra State Electricity Distribution Company Ltd., expects to turn around the loss-making operations by 2021-22, said Sanjiv Goenka, group chairman.
Mr. Goenka told the media that the 25 square km circle, with one lakh customers (86% industrial and the balance domestic), is a challenging franchise.
T&D losses
Its revenue was ₹322 crore in 2017-18 with transmission and distribution losses of about 45%, said Mr. Goenka.
Operations would be conducted through a subsidiary of the group’s flagship company CESC Ltd., which is engaged in power generation and distribution. The franchise period is 20 years, a CESC official said.
“We plan to invest around ₹150 crore in phases,” Mr. Goenka added. With the franchise, CESC’s power distribution operations are now spread across West Bengal, Greater Noida (U.P.) and Rajasthan.
Of this, while Kolkata and Noida are licences, Rajasthan and Maharashtra are franchises.
To a question on whether the group’s independent power plant at Chandrapur in Maharashtra will be benefited, Mr. Goenka said “if at all it helps, that would be only incidental.”
Out of its generation of about 540 MW, Chandrapur has a power purchase agreement for about 440 MW.
