April 21, 2017

Tata Power executes distribution franchisee agreement for electricity distribution in Ajmer

National: Tata Power, India's largest integrated power company, announced execution of distribution franchisee agreement (DFA) for electricity distribution in Ajmer. Subsequent to winning the bid for distribution franchisee of Ajmer circle, Tata Power has formed a special purpose company (SPC), Tata Power Ajmer Distribution. The company signed a 20-year DFA with Ajmer Vidyut Vitran Nigam Limited (AVVNL) to cater to the power requirements of customers in Ajmer.

Tata Power Ajmer Distribution will be responsible for operating and maintaining the distribution network in Ajmer city, which includes City Division-I and City Division-II areas. It will also be responsible for managing the billing and collections in the said areas. Tata Power Ajmer Distribution will work closely with all existing employees of AVVNL to facilitate serving customers with efficiency and superior customer care that are synonymous with Tata Power.

Commenting on this development, Anil Sardana, CEO and managing director, Tata Power, said, "At Tata Power, we are committed to provide our customers with reliable and quality power, teamed with superior customer service. It is our endeavour to be the most preferred distribution company in the country, and work relentlessly towards achieving this objective. The success of our Delhi, Mumbai, and Jamshedpur distribution businesses are testament to this fact. We welcome all our customers in Ajmer to a world-class reliable power experience that is backed by best-in-class customer service. We would also like to thank AVVNL for giving us the opportunity to serve the residents of Ajmer city. We look forward to support of all stakeholders to make the new assignment a success".

Having gained vast experience in distribution in Mumbai and Delhi, Tata Power’s entry into Ajmer will prove beneficial to both customers as well as AVVNL. Tata Power has been a benchmark performer in Delhi since the last 15 years, where losses in Delhi have been brought down from a high of 53 percent in 2002 to approximately 8.8 percent in March 2017. At Ajmer, also, a similar strategy is being worked out where Tata Power will work on all the areas to improve overall improvement in the distribution system by adapting to the Tata culture of transparency and customer orientation quickly.

Tata Power and AVVNL will now commence various activities required for a smooth transition to facilitate the takeover of the distribution franchisee operations by Tata Power Ajmer Distribution.