Monday, August 5, 2013

Ten twin cities to come up for Distribution Franchisee in Bihar

Bihar is one of the fastest growing States in the Country and has acquired considerable attention throughout the country and even abroad for its remarkable performance on the development front. The requirement for an enhanced Transmission and Distribution (T&D) infrastructure has ensured a firm commitment from the State Government, for transforming the present power sector scenario, in the form of assured finance through grants or various Government schemes and availability of resources in the region. 

In order to expedite the reforms process, the management of the newly formed Bihar State Power Holding Co Ltd (BSPHCL) has organized a conference to update potential private sector participants on the developments in the T&D sector and understand the expectations of Developers, EPC Contractors and Manufacturers through the conference - 'Destination Bihar: Opportunities in Bihar State’s Transmission and Distribution Sector'. The conference was organized by Feedback Infra Pvt Ltd in different cities of India with the top management of BSPHCL with the following Agenda:
  • Overview of the new initiatives taken by Governments of Bihar in the Power Sector
  • Update on reforms in the T&D sector through Government  support / investments through various Schemes
  • Discussion on private sector investment opportunities in Bihar's Power (T&D) sector
  • Information for the  private sector  on Distribution Franchisee Model opportunities in the State
  • Understanding the expectations of all stakeholders in order to create an investment friendly environment in the T&D sector
The dynamic team from the State sector was led by Shri. Sandeep Poundrik, I.A.S, CMD, BSPHCL along with:

  • Shri Sanjay Kumar Singh I.A.S. (MD, BSPTCL)
  • Shri Sanjay Kumar Agarwal I.A.S. (MD, NBPDCL)
  • Smt. Palka Sahani, I.A.S. (MD, SBPDCL)
  • Shri. N.K.P. Sinha (CE(RE), NBPDCL)
  • Shri. S.K.P. Singh (CE(Comm.), SBPDCL)
  • Shri. Y.K.Thakur (CE(Trans), BSPTCL)

The conference saw more than 130 delegates from 80 firms meet to discuss the issues that have hindered the sector’s progress in the State and suggest possible solutions and recommendations to the officials present. The conference also highlighted key initiatives that are being undertaken by Bihar State in the Transmission & Distribution Sectors. With more than INR 28,000 Crores of incoming funding in the next 4 years, opportunities abound for private sector organizations.

Please see below the conference presentation:   

Key excerpts from the presentation, focusing on Power Distribution opportunities are:
  • Distribution sector are set to receive projects to the tune of INR 20,137 Cr. (including rural electrification schemes like RGGVY and RAPDRP).
  • Approx 40 lacs electricity consumers across the 2 distribution companies, after unbundling in 2012, as per EA-2003.
  • Demand of the state growing at a CAGR of 8%.
  • Industrial and Domestic consumers contribute to about 50% of the total sales.
  • Areas to come up for Distribution Franchisee are:
    • North Bihar
      • Bettiah - Motihari
      • Gopalganj - Siwan
      • Chapra - Hazipur
      • Darbhanga - Samastipur
      • Begusarai - Barauni
      • Purnia - Kathikar
    • South Bihar
      • Lakhisarai - Munger
      • Bihar Sharif - Rajgir
      • Arrah - Buxar
      • Sasaram - Dehri
  • Above mentioned areas have AT&C losses in the range of 40%-78%.
Its a good initiative taken by Bihar Government & its Discoms, as part of their stakeholder engagement initiative to apprise of the potential opportunities in T&D in the State. Thanks to Feedback Infra team for sharing above presentation. 

Posted by: Kunjan Bagdia @ pManifold            

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