As part of the central government’s drive to privatise Union Territory discoms, Torrent Power on Wednesday said it has signed a share purchase agreement and shareholders’ agreement to buy a 51% equity stake in the power discom of Dadra & Nagar Haveli and Daman & Diu.

The power discom is incorporated as a special purpose vehicle (SPV) under the holding company Dadra & Nagar Haveli and Daman & Diu. The SPV will hold the distribution license for the retail supply of electricity in the union territory (UT), Torrent said in a statement.

The central government’s decision to privatise the UT discoms for higher efficiency in operations and reduction in the financial losses has invited many legal challenges and public interest litigations. In November 2021, the Union cabinet approved the formation of an SPV to privatise the distribution business of Dadra and Nagar Haveli and Daman and Diu, and the sale of equity of the new company to the highest bidder.

Torrent Power on February 8, said, it got the letter of intent to acquire a 51% equity stake in Dadra & Nagar Haveli and Daman & Diu power discom. The company expects the acquisition to significantly strengthen its position as the leading electricity distribution company in the country.

Torrent Power has its presence in 12 cities spread across three states and one UT. With the addition of Dadra and Nagar Haveli, the company will distribute nearly 24 billion units of electricity per annum to over 3.85 million customers and cater for a peak demand of over 5,000 MW, it said.