MSEDCL eyes licence for power supply across Mumbai

At present, three companies supply electricity to Mumbai, the latest being Tata Power, after Adani Electricity and the Brihanmumbai Electric Supply and Transport (BEST) undertaking

MUMBAI: State-owned Maharashtra State Electricity Distribution Company Limited (MSEDCL), which supplies electricity to parts of Mumbai’s eastern suburbs and the rest of Maharashtra, is seeking a licence to expand its jurisdiction to the rest of Mumbai, from Colaba to Dahisar. It also aims to supply electricity to areas that fall under the Mira-Bhayandar Municipal Corporation, just outside Mumbai’s city limits. To this end, MSEDCL, also known as Mahavitaran, has filed a petition for a parallel electricity distribution licence with the Maharashtra Electricity Regulatory Commission (MERC).

MSEDCL currently serves 31.7 million customers in 457 cities and 41,928 villages in the state (Representative picture)

At present, three companies supply electricity to Mumbai, the latest being Tata Power, after Adani Electricity and the Brihanmumbai Electric Supply and Transport (BEST) undertaking. Should MSEDCL be granted a licence, it would become the fourth supplier, offering consumers another option in a market where rates vary.

In 2022, Adani Electricity had applied for a parallel licence to supply power to Navi Mumbai and adjoining areas, with a plan to invest ₹5,700 crore. The move was opposed by MSEDCL as Navi Mumbai generates significant revenue for the state-owned corporation, due to the number of high-end consumers here, such as housing societies, business establishments and industrial units, among others.

MSEDCL’s application for a parallel licence for electricity distribution in Mumbai and its suburbs is a counter move as Adani has a strong presence in the metropolis.

MSEDCL’s petition has been filed under Sections 14 and 15 of the Electricity Act, 2003, as well as the Maharashtra Electricity Regulatory Commission Rules, 2006, and the Electricity Distribution Licencing Rules, 2005, which allows for such a parallel licence.

MSEDCL currently serves 31.7 million customers in 457 cities and 41,928 villages in the state via a large electricity distribution network of 4,230 power sub-stations, 25,000 high-voltage feeders, 9,60,000 distribution transformers, 3,64,000 km of 11 kV lines, and 51,771 km of 33 kV lines. MSEDCL supplies 26,000 MW electricity to the state, daily, while Mumbai’s current requirement is 4,000 MW.

“Mumbai is seeing rapid development due to large-scale infrastructure projects, such as the Coastal Road and an expansion in its metro network. This improved connectivity is fuelling residential, commercial and industrial expansion, said an official with MSEDCL.

“Many data centres are being developed in the eastern and western suburbs of Mumbai, and they require a large amount of electricity. Apart from this, many businesses in the service sector are expanding. All this will require a large amount of power and MSEDCL can provide them cheap electricity,” he said.

Lokesh Chandra, managing director, MSEDCL, said, “Efforts will be made to provide affordable, green electricity and cheaper tariffs to Mumbaiites, as 52% of the power will come from green energy sources by 2030.”