BSES (or Bombay Suburban Electric Supply Ltd) is the company that supplies power in the suburbs of Mumbai. It holds an exclusive license to distribute power upto 2011. Its licensed area covers an estimated 7mn people including commercial, residential & industrial consumers. It operates a 250X2 MW thermal power plant at Dahanu and distributes it using its own grid.
Reliance has acquired a 26.8% stake in BSES through the open offer route. Prior to the open offer, Reliance held 14.8%. The Reliance group has now asked the company for board representation and management control. FIs continue to be the single largest shareholding group, holding over 35% of the paid up capital. It is still in the public sector mode with employees working leisurely at their own pace (reduced or hastened on greasing of palms). Maybe once Reliance takes over the management control, things will change.
BSES is also the most efficient Indian utility as per records. PLF achieved by BSES is the highest among all SEBs and licensees. Moreover, BSES’ T&D losses of 11.5% compares favourably against the national average of over 22%.
BSES also ranks favourably on other parameters such as auxiliary consumption and station heat rate. With an increase in the PLF of the Dahanu plant to over 88% in FY00, BSES’ dependence on TEC has reduced considerably. However, BSES continues to depend on TEC for a little under 50% of its requirements.
BSES also plans huge expansions. With all these in the anvil, and Reliance taking over the management, the company holds great potential for growth and investment.