May 23, 2014

Kolkata-based India Power Corporation has bagged the licence for distributing power in Gurgaon and is aiming to serve one fourth of subscribers in the Delhi suburb, which is plagued by prolonged power cuts. The company is planning to set up its own distribution network in Gurgaon and invest about Rs 1,500 crore to supply power round-the-clock, a person familiar with the development said.

According to people familiar with the matter, the state utility in Gurgaon is not in a position to buy the quantum of power required to supply in the region, which consumes 450-500 MW. In West Bengal, the company is aiming to supply power at lower rates than what is charged by the state utility. It is looking to buy cheaper power from Damodar Valley Corporation as well as the power exchange to beat the rates being offered by the state utility in Asansol region.

It is setting up its own distribution network for domestic consumption and is looking at a customer base of about 20,000 households by 2015.

In Asansol, the state utility sells power at an average of Rs 6.58 per unit, while India Power is targeting Rs 6.13 per unit. The company is also in the process of setting up units to produce 3,150 MW at a lower cost by the end of next year.