In Short : Arun Mahesh Babu, MD of Uttar Gujarat Vij Company Ltd (UGVCL), emphasized the increasing focus on renewable energy as a key driver of India’s power sector. He highlighted the role of solar and wind energy in ensuring sustainability and energy security. With policy support and investments, renewable adoption is accelerating, paving the way for a greener future.
In Detail : Uttar Gujarat Vij Company Limited (UGVCL), catering to the northern parts of Gujarat, is one of the top-performing discoms in the country, consistently receiving an A+ rating from the Ministry of Power (MoP). At a recent Power Line conference, Arun Mahesh Babu, Managing Director, UGVCL, discussed the discom’s recent initiatives, progress under the Revamped Distribution Sector Scheme (RDSS), strategies to reduce interruptions, future priorities and challenges. Excerpts…
Our primary focus has been on enhancing power reliability and minimising the frequency and duration of interruptions. We have also been working to reduce the System Average Interruption Duration Index (SAIDI) and the System Average Interruption Frequency Index (SAIFI) as we primarily serve consumers in the urban areas of Ahmedabad, Gandhinagar and two other municipalities. Initially, SAIFI and SAIDI were as high as 11-12. Through our interventions, we have reduced them to 3.8 and 4, with the target to reach 1.5 and 2, which are benchmarks for larger discoms.
Gujarat already provides 24-hour uninterrupted power to its citizens. Hence, we are working to reduce the duration of interruptions. Last year, the total power interruption duration was about one hour and 21 minutes cumulatively, with only 18 interruptions recorded, including those on the transmission side.
Feeder bifurcation
A significant intervention has been the bifurcation of all feeders. We have upgraded and bifurcated Jyotigram Yojana (JGY) feeders. Over 60 per cent of our revenue comes from industrial feeders, which are provided with 24×7 uninterrupted power. Our focus has also been on agricultural feeders to ensure uninterrupted power supply for agricultural pumps during morning hours. As of now, we are providing 8 hours of power to them, with demand steadily increasing.
We are also working to convert high tension (HT) industrial feeders into underground systems. We have achieved progress of 50 per cent so far. The remaining 35 per cent is expected to be completed soon, ensuring uninterrupted power supply to major industries. We have also urged the transmission sector to adopt coated conductors to reduce losses and reconduct existing cables to enhance efficiency. These interventions are part of UGVCL’s aggressive strategy to minimise SAIFI, SAIDI, and transmission and distribution (T&D) losses, especially with the semiconductor industry coming up in Ahmedabad.
The constraints mainly lie in agricultural and JGY feeders, which account for about 50 per cent of our total load. Agricultural feeders are concentrated in Banaskantha, Aravalli, Mehsana and other bigger districts. Lines passing through forested areas also face frequent interruptions.
The next big challenge is to deliver 24×7 quality power without any fluctuations. Even minor voltage drops or sags can result in significant losses, particularly in the semiconductor industry. We are adopting cutting-edge technology to provide uninterrupted power, including 5 minute UPS backups. This ensures that even in the event of a blackout or substation failure, manufacturing processes can continue seamlessly.
RDSS and system improvements
We are also undergoing significant transformation under the RDSS. UGVCL is currently leading the nation, with nearly 80 per cent completion of awarded projects. It is aiming for 100 per cent completion of all 12 packages awarded by February 2025. UGVCL also leads the four discoms in the state, with approximately 150,000 smart meters installed under the scheme.
We have also commissioned 58 packages under the system improvement initiative, which is jointly funded by the Government of Gujarat and UGVCL.
We are also upgrading low-rating transformers in the 20-100 kVA range to the 100-500 kVA range to enhance operational efficiency. For load growth areas, we are installing new transformers and transitioning to 100 per cent underground feeders. We are also providing underground power to homes in cities like Ahmedabad and Gandhinagar, similar to private discoms. In the taluka headquarters and Nagar Palikas, we are fully transitioning to underground systems.
We are also providing reliable and redundant power supply through ring main units (RMUs) managed by the supervisory control and data acquisition (SCADA) centre in Ahmedabad. About 1,150 feeders are operated remotely through this SCADA centre in Gandhinagar. A new Rs 2 billion SCADA centre is being established to enable the remote operation of all new system improvement lines across eight districts.
We have also proposed a smart city-based ring system to the MoP. We are also trying to pre-duct existing lines. In addition, under the resilient infrastructure initiative for disaster management, we are building resilient underground infrastructure in areas hit by cyclones, etc.
We are also deploying medium voltage covered conductor (MVCC) cables in tribal and hilly areas, and also in regions where theft is a concern. A major tender for MVCC cables has already been issued. In the next phase, we plan to extend MVCC cables to agricultural and JGY feeders, significantly reducing theft and transmission sag.
While T&D losses in many regions stand at 30-35 per cent, UGVCL’s T&D losses stand at just 7 per cent (comprising 4 per cent transmission losses and 3-3.2 per cent distribution losses as of 2023-24). Our aim is to lower these losses further.
Capex plans and focus areas
UGVCL has incurred approximately Rs 15 billion under the RDSS and Rs 27.12 billion on system improvements. An additional Rs 10 billion is planned for upcoming projects, increasing the total capital expenditure to around Rs 52 billion across cabling, transformers, current transformers and potential transformers (CTPTs), RMUs, etc.
The primary focus of our investments is on cabling. The priority for underground cabling is determined by the revenue model, with industries being the top priority. The second priority is residential consumers in urban areas, Nagar Palikas and taluka headquarters, particularly in suburban zones of Ahmedabad, Gandhinagar and Mehsana, where consumer expectations for reliable power are high. In regions like Banaskantha and border areas, distribution lines often stretch 80-100 km on single lines. To address sag, voltage drops and long distribution distances, we are shortening lines lengths and upgrading infrastructure.
In addition, UGVCL is directing investments towards MVCC conductors and four-core electrical cables. It is also investing in remotely monitored and operated RMUs and CTPT substations for high-rise buildings. Transformers are another significant area of capex, with plans under way to use 100-500 kVA transformers to maintain future operations at 50-60 per cent plant load. Currently, many of our transformers (25-200 kVA) operate at 90 per cent or above efficiency, which increases the risk of drops, sags and failures.
Supply chain
Gujarat benefits from local manufacturing hubs for electrical supply systems in Vadodara, Ahmedabad and Surat, ensuring a reliable supply chain. Additionally, UGVCL maintains supplier confidence by promptly processing payments. The high demand from the state discoms further incentivises manufacturers to prioritise the state. However, limited manufacturing capacity nationwide presents a challenge. The surge in demand, driven by RDSS and smart metering projects, has stretched the supply chain. Meeting the growing power requirements will require scaling up of manufacturing capacity.
Outlook on renewable energy procurement
Renewable energy is a growing focus area, with over 54 per cent of power purchases now coming from renewable energy sources. This figure is expected to rise to 65-70 per cent in line with renewable purchase obligations. Going forward, the cost of power is expected to decrease significantly, with solar power procured through PM-KUSUM and co-located renewable energy tenders at competitive rates as low as Rs 2.46 per unit. As the state works towards net zero emissions, the share of renewable energy will continue to grow, further bringing down power purchase costs.
