Indo Asian Fusegear forays into Power Distribution Business

Indo Asian Fusegear Ltd has announced that the Company is foraying into power distribution business. It is setting up a new company Indo Asian Power Distribution and Infrastructure Ltd (IAPDIL) with an investment of Rs 25 crore.

The Company is in dialogue with the state electricity boards, corporations and utilities for taking up distribution network on franchise basis. Initially the Company is planning to work on projects in north India including Uttrakhand, U.P., Rajasthan, Haryana, Punjab and M.P. The initial investment will be made through internal accruals of the Company.

Commenting on the formation of the distribution company, Mr V P Mahendru, CMD, of the Company said "With government pushing for reforms in the power sectors and more than Rs 35,000 crore being earmarked for the same, there is huge untapped potential in distribution business. Our foray into power distribution business is a logical extension of our electrical equipments business and will further enhance our diverse offering of products and services."

He further added "Indo Asian Power Distribution and Infrastructure Ltd will strive to improve power distribution and reduce losses by introducing efficient systems & processes such as spot billing, remote meter sensing, regular energy audits etc."

The Company will leverage its existing relations with state distribution companies and take over a few areas from the Discoms so that net revenue realization increases. The Company seeks to improve the existing system by introducing high voltage system etc by making own investment or by getting funds from Discern under APDRP and other schemes as per condition of the tender and reduce technical and commercial loss and share the benefit with Discom. The new company will have a consultancy and construction wing to carry out survey and take up construction work on turn key basis respectively. The company will initially have a workforce of over 100 engineers.

IAPDIL as per the agreement will share the profits with discom, in the process Discom saves on operate & manage cost.

Source : Equity Bulls

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