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Case Study | October 2016

India Power Corporation (Bodhgaya) Limited

Company Profile
India Power Corporation Ltd. (IPCL), formerly known as DPSC Limited, incorporated in 1919, is set to become India´s leading power generation and utility company. The company has actively forayed into a diversified portfolio, with renewable and conventional modes of power generation, distribution and power trading. IPCL has always aimed at optimising its distribution assets and creating benchmarks in efficiency by outperforming industry standards. As such, the T&D loss figures stand at less than 3 per cent against the all India average of about 25 per cent.

Journey Highlights

  • India Power Corporation Limited has been awarded the distribution franchisee for Gaya, Bodhgaya & Manpur region by South Bihar Power Distribution Company Limited. IPCL through its wholly owned subsidiary India Power Corporation (Bodhgaya) Limited has taken over the franchisee operation from June 01, 2014.
  • The company supplies power to more than 125,000 consumers in an area of around 1,500 sq km, compromising both urban and rural pockets. Several activities are being undertaken to reduce the AT&C losses through investments and associated systems as well as streamlining management practices.
  • India Power´s distribution franchise at Bodh Gaya will soon be two years old. In these two years, the company has been able to reduce their T&D losses in the franchisee area from 70 per cent to 46 per cent. This was accomplished through consumer outreach, vigilance and theft booking, the reduction of technical losses, and other measures in that vein.

Challenges & SOLUTIONS
  • Immediately after IPCL´s takeover of the distribution franchise, the company began to face a plethora of problems such as supply interruptions and legacy billing issues.
  • In order to rectify the situation, they began by aiming at reducing interruptions and providing reliable and adequate power to consumers. This helped them gain the sympathy and support of residents in the area.
  • Once the initial bonds had been established, the company began to focus on arresting transmission and distribution losses. A multi-pronged strategy was adopted by the team - while technical losses were visible, they decided, commercial losses needed to be focused on first.
  • New service connections and meter replacements were taken up, and billing efficiency was improved through the induction of professional vendors into the system.
  • Non-paying consumers, including government-owned companies and departments, were brought into the fold. Ring-fencing the boundaries of the franchisee area also resulted in a savings of 1-1.5 MU per month.
  • Technical losses were arrested through installation of LT armoured cables instead of bare conductors - this reduces hooking and theft to a large extent.
  • IPCL also reduced distribution transformer failure rates by implementing planned maintenance.
  • This has led to an all-round improvement in power supply, led by their ´consumer first´ policy which has ever been the chief guide.

Conclusion
Ensuring consumer delight has been a key driver of India Power, and consumer delight comes from uninterrupted power and competitive tariffs. The latter involves a continuous journey of discovering lower power procurement prices through exchange, bilateral trades, and innovative negotiations. All these strategies have helped keep the company´s tariffs competitive, and helped their consumers maintain demand wfor electricity.

- Jocelyn Fernandes

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