Maharashtra State Electricity Distribution Company Limited (MSEDCL), also known as Mahavitaran, has formally applied to the Maharashtra Electricity Regulatory Commission (MERC) for a parallel licence to distribute electricity across Mumbai. This strategic move aims to expand Mahavitaran’s presence in the city’s lucrative markets, including Colaba, Mahim, Bandra, Dahisar, Vikhroli, Chunabhatti, Mankhurd, Chena, Kajupada, and Mira Bhayandar Municipal Corporation areas.
Currently, Mumbai’s electricity distribution is managed by three entities: Brihanmumbai Electric Supply and Transport Undertaking (BEST), Adani Electricity Mumbai Limited, and Tata Power Mumbai. Mahavitaran already supplies power to the suburbs of Mulund and Bhandup. If granted, the new licence would significantly broaden its footprint in the city. Mahavitaran, a wholly owned subsidiary of the Maharashtra State Electricity Board, serves over 31.7 million customers across the state. It operates an extensive network comprising 4,230 substations, nearly 25,000 high-voltage feeders, 960,000 distribution transformers, and more than 364,000 kilometres of 11 kV lines. The company’s daily supply capacity stands at 26,000 MW, covering 457 cities and over 41,928 villages in Maharashtra .
The application for the parallel licence is submitted under Sections 14 and 15 of the Electricity Act, 2003, along with the provisions of the MERC Rules, 2006, and the Electricity Distribution Licence Rules, 2005. This initiative aligns with the state’s broader energy policy, which encourages competition and aims to enhance service quality and efficiency in electricity distribution. Mumbai’s electricity demand has surged to approximately 4,000 MW, driven by ongoing metro and coastal road infrastructure projects, expansion in the service sector, and a boom in data centre developments across the eastern and western suburbs. To meet this growing demand, Mahavitaran has entered into power purchase agreements under the Resource Adequacy Plan, aiming to boost the state’s generation capacity from 42,000 MW to 81,000 MW over the next five years. A significant share of this will be green energy, enabling the supply of clean and affordable electricity.
In addition to expanding its distribution network, Mahavitaran has proposed a reduction in tariffs before the MERC, signalling its intent to make electricity more affordable for consumers. With over seven decades of experience in electricity distribution in Maharashtra, the company is well-positioned to serve Mumbai’s residential, commercial, and industrial consumers with reliable, green, and affordable power.
The MERC is expected to review the application and consider public suggestions and objections before making a decision. This move could mark a significant shift in Mumbai’s electricity distribution landscape, potentially offering consumers more choices and fostering greater competition in the sector.
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