In November 2021, the Union cabinet approved the creation of an SPV to privatize the distribution activities of Dadra and Nagar Haveli and Daman and Diu, and the sale of the new company’s equity to the highest bidder.
As part of the central government’s drive to privatize Union Territory discoms, Torrent Power said on Wednesday it has signed a share purchase agreement and shareholders’ agreement to buy a 51% stake in Dadra’s powerdiscom. & Nagar Haveli and Daman & Diu.
The power discom is included as a special purpose vehicle (SPV) under the holding companies Dadra & Nagar Haveli and Daman & Diu. The SPV will receive the distribution license for the retail supply of electricity in the union territory (UT), Torrent said in a statement.
The decision of the central government to privatize the UT discos for greater operational efficiency and reduction of financial losses has led to many legal challenges and lawsuits of public interest. In November 2021, the Union cabinet approved the creation of an SPV to privatize the distribution activities of Dadra and Nagar Haveli and Daman and Diu, and the sale of the new company’s equity to the highest bidder.
Torrent Power said on Feb. 8 that it had received a letter of intent to acquire a 51% stake in Dadra & Nagar Haveli and Daman & Diu power discom. The company expects the acquisition to significantly strengthen its position as the leading electricity distribution company in the country.
Torrent Power is present in 12 cities across three states and one UT. With the addition of Dadra and Nagar Haveli, the company will distribute nearly 24 billion units of electricity per year to more than 3.85 million customers and meet peak demand of more than 5,000 MW, it said.
This post Torrent Power buys 51% shares in Dadra Nagar Haveli & Daman Diu power discom was original published at “https://www.financialexpress.com/industry/torrent-power-buys-51-equity-in-dadra-nagar-haveli-daman-diu-power-discom/2463220/”