KOLKATA: South Bihar Power Distribution Company (SBPDCL) has awarded power distribution franchisee to DPSCBSE 0.00 % for Gaya Town and its adjoining areas.

The franchisee has been awarded by the Bihar power department under the Electricity Act 2003 and regulations made thereto for supply of energy and other related matters thereto. The award was made on 12th August, 2013.

Upon acceptance, DPSC enters into a distribution franchisee agreement with the concerned authorities subsequently. The license area is around 190 square km and will be handling both high and low tension consumers. The area houses some some one lakh consumers of which high tension customers are about 43%.

The company will be investing between Rs 150 crore and Rs 200 crore for revamping the distribution network in the area which now has an AT & C loss as high as 60%.

This is the third franchise that the Bihar government has awarded for power distribution in the state. Recently it has awarded SPML Infra LtdBSE -9.95 % with the power distribution franchisee license for Bihar’s Bhagalpur region for a 15-year period.

Bihar is plagued with high distribution losses due to poor conditions of transformers, huge pilferages, substantial billing and collection losses. Losses are as high as 68%, meaning, that much of the power supplied does not yield any returns.

DPSC is one of the oldest power utility companies in India, incorporated in 1919 in West Bengal. The company generates 12 MW from its coal-based thermal power plant at Dishergarh, West Bengal. In the T&D space, the company has a license for supply of electricity in and around Asansol-Ranigunj area spread over 618 sq.km. With a combined distribution capacity of 250 MVA, the company has strong distribution network with T&D loss of only 3% against country average of 25%.