BSES Delhi network recast to cost Rs 1,000 cr

Praveen Chandran
19 September 2002

Mumbai: BSES has outlined an investment plan of Rs 1,000 crore in order to revamp the power distribution network in Delhi.

BSES has initiated the final round of discussions with leading financial institutions and banks to finalise the debt-equity structure of the proposed investments in south-west and central-east circles in the capital, where it took over distribution recently.

Say BSES officials: Leading institutions such as Industrial Development Bank of India, ICICI and State Bank of India are participating in the meeting. The debt-equity structure is likely to be in the ratio of 70:30 and the entire equity will be mobilised through internal accruals.

With nearly 60 per cent of the billings realised from industrial and commercial connections, which account for 18 per cent of the consumers, the task seems to be cut out for the private distributor. The focus of BSES would hence be on tackling the problems and ensuring better services for these high value customers, the officials add.

In the case of both the central-east and south west zones, where BSES is distributing power, the 300,000 industrial and commercial consumers (18 per cent of the 1.7-million consumers in the two zones) account for 60 per cent of the billings and 59 per cent of the total revenue generated.

The most valued consumers for BSES are the 1,020 large industrial units, which comprise just 0.06 per cent of the total consumer base of the two distribution companies of BSES, but account for 21 per cent of the overall billings at around Rs 425 crore.