Report by Kamgar Ekta Committee (KEC) correspondent
Adani Power has decided to apply for license to distribute power in more areas around Mumbai, including Mulund, Bhandup, Thane city, Navi Mumbai, Kharghar, Taloja and Uran. In all these areas power is currently distributed only by the state-owned Maharashtra State Electricity Distribution Company Limited (MESDCL also known as Mahavitaran), formed after the division of the Maharashtra State Electricity Board. The areas chosen by Adani are highly urban, commercial, industrial and profitable.
Adani Power already distributes electricity in many suburbs of Mumbai.
An application for grant of a distribution licence in the above identified areas has been admitted by the Maharashtra Electricity Regulatory Commission (MERC) on 25 November 2022. Adani Power has applied for the licence in anticipation of the passing of the Electricity (Amendment) Bill 2022, which will allow it to use the existing network of MSEDCL by paying a small fee and then compete with MSEDCL itself. It may also set up its own distribution network for a limited number of large electricity consumers like JNPT port.
Private distributors claim that their entry in distribution in competition with the state-owned distribution company will make power cheaper for consumers. The experience of consumers in Mumbai city, where two private distributors – Tata and Adani – are allowed, shows that the claim of private distributors is false. Power rates in Mumbai city are among of the highest in the country!