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BSES to set up meter production

Aug 17, 1999

BSES, one of India's largest power utilities, plans to set up an electronic meter manufacturing unit at Silvassa, Gujarat. The company expects to manufacture 200,000 meters p.a. Most of the company's production will be for captive use. The project cost is expected to be Rs 60 m. BSES was initially a power distributor, supplying power to the northern suburbs of Bombay. The company has now set up a 500 MW power plant, enabling it to generate its own power and cut purchases from Tata Electric Companies. In future, the company plans to add more capacities in different parts of the country.

BSES's venture into meter production makes a lot of sense, given the company's strength in transmission and distribution (T&D) and its awareness of the problems with the existing meters. The company is on the lookout for the right technology to tide over the problems with the existing meters. It has shifted focus from electro-mechanical meters to the more reliable and accurate electronic ones. Consequently, its captive requirements are on the rise as it bags around 100,000 new consumers every year, and has another 300,000-400,000 meter replacements annually. Moreover, with its three group companies in Orissa likely to become operational soon, the captive consumption of meters is likely to rise significantly.

Manufacturing meters in-house will have significant benefits for the company. While the company's revenues will remain largely unaffected, manufacturing meters in-house will reduce reliance on suppliers. Moreover, stringent quality control measures can be implemented to check power theft.

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