In its licence application last month, Essar Projects (India) Limited, a subsidiary of Essar Group, has proposed to introduce state-of-art distribution network with compact sub-stations, supervisory control and data acquisition facility and automatic meter reading (AMR) based meters to reduce technical and commercial losses.
It has considered transmission and distribution losses of 8% against 27% loss level of the two power utilities.
Banking on an estimated consumer migration of 25% from the existing supplier in the initial five years, the company hopes to take its electricity supply from 388 million units in the second year of operations to 1,572 million units in the sixth year.
The power purchase cost has been estimated at 5.19 paise per unit in the initial year from own generation and bilateral purchase.
The group has own generation capacity of 3910 MW, including 600 MW pithead coal-fired thermal power plant at Mahan in Madhya Pradesh, 500 MW gas-based plant at Bhander in Gujarat, 515 MW multi-fuel power plant at Hazira in Gujarat and 120 MW captive co-generation multi-fuel plant at Vadinar in Gujarat.
The power generation capacity is expected to increase to 6,700 MW by March 2014, according to the application.
Earlier, realty giant DLF Estate Developers Limited had in 2006 applied for an "exclusive" distribution licence to supply power in a posh locality - DLF City Phase 1 to 5 - developed by it in Gurgaon.
However, DHBVN and Haryana Vidyut Prasaran Nigam (HVPN), the state-owned transmission company, had strongly opposed the private developer's plea and pressed for its rejection on the ground of lack of capability to discharge the responsibility of a distribution and retail supply licensee. The application was later disallowed.