Indian company to invest in electricity supply

An Indian power distribution company, TATA Power, has expressed interest in investing in Ghana’s power sector to provide reliable and affordable power.

“TATA Power is ready to put in a bid to either engage in consultancy arrangements with the government or engage in a public private partnership module or privatisation of the power distribution sector, the Chief Executive Officer (CEO) and Executive Director of TATA Power New Delhi Distribution Limited (TPDDL), Mr Praveer Sinha, told the Daily Graphic in an interview in New Delhi.
Mr Sinha was speaking to the Daily Graphic after meeting with a 16-member delegation which is currently in New Delhi to study how different models worked out in the power distribution industry in New Delhi.
He said TATA Power had the technology and wealth of experience to provide Ghanaians with reliable and uninterrupted electricity supply, adding “We will provide quality conductors, meters and supply power 24/7 to the satisfaction of Ghanaians and businesses,” Mr Sinha said.
Individuals and businesses in Ghana are currently facing the problem of irratic power supply.
TPDDL’s capabilities
Mr Sinha told the Daily Graphic that TPDDL would revamp Ghana’s power distribution sector within one to three years if given the opportunity.
“We will inject a lot of capital expenditure,” he said and explained that TATA could not immediately state the exact amount it intended to invest until it had conducted an assessment of the country’s power distribution sector.
“TPDDL can assure Ghanaians of 99.5 per cent of uninterrupted power supply,” Mr Sinha added.
He said TPDDL was also into renewable sources of power, especially when it came to roof-top solar power generation.
The company has been operating in New Delhi for the past 12 years under a private partnership arrangement.
It has 59 per cent shares, with the Indian government holding 41 per cent shares.
Study Tour
The objective of the study tour is to expose participants to distribution utility long-term concession or partial privatisation models in other developing countries.
The tour would also take participants to Kampala, Uganda, to enable them to better understand Private Sector Participation (PSP) models.
Its objective is also to enable the participants receive first-hand information directly from electricity distribution utility management and staff, government agencies, regulatory bodies, Independent Power Producers (IPPs), industries, consumer groups, and financial institutions on the lessons learned, benefits and challenges of PSP in distribution.
Delegation
A Deputy Minister of Energy and Petroleum, Mr John Jinapor, is leading the delegation which comprises representatives of Parliament, the Ministries, Departments and Agencies (MDAs), Consumer Protection Agency, IMANI, the Ghana Trades Union Congress (TUC) and the Association of Ghana Industries (AGI).
 Areas being studied are the concession mode, partial privatisation mode, processes and institutional responsibilities (private sector versus government, public participation, legal and regulatory framework, performance monitoring, labour/union issues with reform, public information campaigns, subsidies/tariff issues and management agreements, among other issues.
The delegation has held series of meetings with players in New Delhi’s power distribution sector to seek first-hand information on how New Delhi, which once suffered power challenges, had succeeded in the long run.

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