July 9, 2013

Essar group company Essar Projects has sought licence for a period of 25 years to distribute power in municipal area of Gurgaon in Haryana. If the licence is granted to Essar Projects, then it will be the second distribution licence holder after DHBVN for supplying power to energy consumers within the municipal limits of Gurgaon.

Setting the capital outlay on this project at Rs 1,519 crore, the company in its application has said that it would set up its own distribution network for supplying power to the consumers. The company has kept the cost of power from own generation and purchase at Rs 5.19 per unit with hike of 3-4 per cent per annum.

The Gurgaon circle is a potential area in terms of revenue generation and consumer load. DHBVN generates almost 50 per cent of its revenue from the Gurgaon circle only out of its total five circles. It fetched revenue of Rs 336 crore last month from the Gurgaon circle out of the total revenue of Rs 722 crore. Gurgoan has a power consumer base of 360,000 with average power load of 700-800 MW.