The Brihanmumbai Electricity Supply and Transport (BEST) undertaking is expected to save nearly Rs 350 crore in infrastructure expenses through a proposed partnership with Tata Power Transmission Company Ltd (TPC-T) to upgrade four electricity receiving stations in south Mumbai.
BEST’s committee has approved a plan to lease portions of land at the four facilities to Tata Power for modernisation. The arrangement will enable the replacement of ageing high-voltage equipment without requiring BEST to finance the extensive upgrades or pass additional costs on to electricity consumers through higher tariffs.
Four Key Stations to Receive Upgrades
The project covers BEST’s 110 kV receiving stations at Backbay, Nariman Point, Dr Babasaheb Ambedkar and Khetwadi. These facilities have been functioning for nearly 20 years or longer, and their outdated equipment has raised concerns over operational reliability.
The network has also experienced technical problems, including a bus bar failure at Backbay and transformer breakdowns at the Dr Babasaheb Ambedkar station. The proposed improvements are expected to strengthen electricity transmission and minimise disruptions across important commercial and residential neighbourhoods.
Tata Power to Bear Modernisation Costs
Under the proposed agreement, Tata Power will finance and execute the replacement of transmission equipment, civil construction, operations and maintenance. BEST will retain ownership of the properties, while the company will receive restricted access for transmission-related activities.
Tata Power will not be allowed to sub-lease or mortgage the premises or establish third-party rights over them. BEST officials will retain unrestricted access for inspections and supervision.
Lease Income and Regulatory Approvals
The arrangement is expected to generate monthly rental income of approximately Rs 3.18 crore over a lease period of 26 to 35 years. BEST will also receive an upfront security deposit of Rs 38.13 crore.
Following the committee’s approval on Friday, the proposal will be submitted to the State Transmission Utility (STU), Maharashtra Electricity Regulatory Commission (MERC) and Brihanmumbai Municipal Corporation (BMC) for the necessary clearances before the agreement is formally implemented.
Source: The Free Press Journal
