Mumbai: The BEST undertaking is set to save nearly Rs 350 crore in infrastructure upgradation costs while strengthening electricity supply in south Mumbai, with its committee approving a proposal to lease land at four key receiving stations to Tata Power Transmission Company Ltd (TPC-T) for modernisation. The arrangement will allow Tata Power to replace ageing high-voltage equipment at its own cost, without putting an additional financial burden on electricity consumers through higher tariffs.
Four Receiving Stations Identified
The proposal covers BEST's 110 kV receiving stations at Backbay, Nariman Point, Dr Babasaheb Ambedkar and Khetwadi. These installations have been operational for nearly two decades or longer and are increasingly facing reliability issues due to ageing and obsolete equipment. The network has also witnessed technical failures in recent years, including a bus bar failure at Backbay and transformer failures at the Dr Babasaheb Ambedkar receiving station. The proposed modernisation is expected to address these concerns and improve the reliability of electricity transmission in some of Mumbai's key commercial and residential areas.
Tata Power To Fund Modernisation
Under the proposed arrangement, TPC-T will undertake the complete replacement and modernisation of high-voltage transmission infrastructure. The company will bear the entire cost of capital investment, civil works, operations and maintenance. BEST, meanwhile, will retain ownership of the land and premises, with Tata Power receiving only limited rights to use the sites for transmission-related activities. It will not be permitted to sub-lease, mortgage or create third-party rights over the properties. BEST officials will continue to have unrestricted access to the premises for inspection and monitoring.
Lease Revenue And Cost Savings
The agreement is also expected to generate a steady revenue stream for the cash-strapped undertaking. BEST will receive monthly lease rentals of around Rs 3.18 crore for a period ranging from 26 to 35 years, apart from an upfront security deposit of Rs 38.13 crore. Officials estimate that the arrangement will help avoid nearly Rs 350 crore in future expenditure on equipment replacement, infrastructure upgrades and administrative costs.
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For BEST, the decision offers a way to upgrade critical electricity infrastructure without diverting its own funds towards expensive transmission projects. It is also expected to improve grid reliability and reduce the risk of equipment-related disruptions.
Further Regulatory Clearances Awaited
Following the committee's approval on Friday, the proposal will be sent to the State Transmission Utility (STU), Maharashtra Electricity Regulatory Commission (MERC) and Brihanmumbai Municipal Corporation (BMC) for further clearances before the agreement is formally executed.
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