Ahmedabad-based Torrent Power Limited, one of India’s largest power distribution companies, has entered into an agreement to acquire 51% equity of Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited.
“Torrent Power has entered into a Share Purchase Agreement and Shareholders Agreement with the Administrator of the Union Territory of Dadra and Nagar Haveli and Daman and Diu (Holding Unit) and Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited (SPV). For purchase of 51% equity share capital of the SPV from the holding entity,” the company announced in a media statement on Wednesday.
The agreement follows the bid that the company won to privatize the power distribution business in the union territory.
According to the statement issued by the company, the Special Purpose Vehicle (SPV) will be responsible for distribution and retail supply of electricity and holds the distribution license in the Union Territory of DNH and DD.
The company supplies electricity to Ahmedabad, Gandhinagar and Surat in Gujarat and Agra in Uttar Pradesh and Bhiwandi in Maharashtra. The latest acquisition of distribution rights further cements Torrent’s position as the leading power distribution company in the country with presence in three states and one union territory.
“With DNH and DD, Torrent will deliver approximately 24 billion units of electricity per year to more than 3.85 million customers and meet demand of more than 5,000 MW,” the company statement said.
With group revenue of Rs 20,500 crore, Torrent Group is one of the top power sector companies, present across the entire value chain of generation, transmission and distribution.
The group’s other major businesses include pharmaceutical and city gas distribution for residential, industrial and auto in Gujarat, Tamil Nadu, Uttar Pradesh and Rajasthan.