The Hindu Business Line : MIDC foraying into power trading

A bright initiative
The power procured from trading would be primarily distributed to industrial units
MIDC runs 229 industrial estates spread over 1.50 lakh acres in the State
It has already entered into a franchise pact with Maharashtra State Electricity Distribution Co

Rahul Wadke

Mumbai, Sept. 17 The Maharashtra Industrial Development Corporation (MIDC) is venturing into power trading. It has sought licence from the Central Electricity Regulatory Commission to trade in 300 MW of power. The power procured from trading would be primarily distributed to industrial units located inside MIDC areas.

Sources in the Maharashtra Government familiar with the development said the aim of the MIDC is not to earn revenue but to avoid load shedding in the industrials area. It will procure power from producers in the State and across the country.

MIDC runs 229 industrial estates spread over 1.50 lakh acres in the State. Due power shortage, MIDC governed industrial areas have one day of compulsory load shedding. Earlier in the year, during summer months, MIDC was on the verge of declaring second day of load shedding due to power shortage.

MIDC will obtain an authorisation from industries for arranging power through competitive tariff bidding process. Based on the demand from industries, MIDC will invite tenders for purchase of power for short-term and long-term basis from various available sources.

Out of the total power demand of 14,500 MW in the State, the demand from the industry is 5,000 MW; from urban areas it is 3,500 MW and 6,000 MW from rural areas.

Franchise pact

Sources said that MIDC has already entered into a franchise agreement with Maharashtra State Electricity Distribution Company Ltd for power distribution in the industrial areas.