Share price of Torrent Power gained 1.6 percent in the early trade on Friday as company received LoI from MSEDCL.
Company has emerged as winner of the competitive bidding process conducted by Maharashtra State Electricity Distribution Company (MSEDCL) for appointment of input based Distribution Franchisee for distribution of electricity in Shil, Mumbra & Kalwa sub-divisions under Thane Urban Circle, for a period of 20 years.
MSEDCL has issued the Letter of Intent (Lol) to company and the Distribution Franchisee Agreement (DFA) with MSEDCL will be executed in due course and operations are expected to be taken over soon thereafter.
Company's obligations under the DFA will be to distribute electricity to the consumers on behalf of MSEDCL in accordance with applicable Law, Regulations & Directives of MERC.
The company is expected to upgrade the infrastructure, improve quality of supply and lower AT&C losses; whereas MSEDCL is obliged to supply input power at annual input rates as agreed under the DFA.
At 09:17 hrs Torrent Power was quoting at Rs 262.90, up Rs 2.45, or 0.94 percent on the BSE.