India Power Corporation Ltd (IPCL) is looking to invest Rs 33 crore to beef up its distribution network in Bihar.
In June, the Calcutta-based power company’s wholly owned subsidiary — India Power Corporation (Bodhgaya) Ltd — had entered into an agreement with South Bihar Power Distribution Company Ltd to supply power for 15 years to Gaya, Bodhgaya and Manpur areas of Bihar.
“We have submitted an investment plan of Rs 33 crore to upgrade infrastructure and induct new power distribution technology to the Bihar Electricity Regulatory Commission and are awaiting a formal approval before we implement the capital expenditure programme,” IPCL chairman Hemant Kanoria said.
“Our focus is on the industrial requirement for which the distribution capacity is being scaled up. This will be followed up by certain changes in the network to ensure quality of power supply,” Kanoria said.
According to the company, the investment will help to address issues such as obsolete equipment, overloading and poor reliability.
Kanoria said the management had identified core areas that would require investment to ensure quality service. The company can cater to over 1 lakh customers in Gaya and adjoining areas.
It is too early for IPCL to track any change in power demand or make future projections. However, aggregate power consumption has gone up with the increase in hours of supply after the company took charge of the distribution.