Bhubaneswar, Dec 23 (LocalWire) The Odisha Electricity Regulatory Commission (OERC) has awarded a letter of intent to Tata Power Co Ltd after it emerged as the successful bidder to own the licence for distribution and retail supply of electricity in Odisha’s five circles together constituting the Central Electricity Supply Utility (CESU).
The five electrical circles constituting CESU are the areas of Bhubaneswar (Electrical Circle-1 and II), Cuttack, Paradip and Dhenkanal. The license is being offered for 25 years initially.
CESU is spread over 30,000 sq km with a population of over 1.4 crore and a consumer base of 2.5 million.
The average demand of CESU is around 1,300 megawatts with the annual input energy of 8400 MUs (FY 2018).
Presently, Tata Power has a total consumer base of 2.5 million across Mumbai, New Delhi and Ajmer and with acquisition of CESU, its consumer base will double and touch 5 million.
The proposed sale of CESU to Tata Power will be through the formation of a special purpose vehicle entity.
Tata Power has been informed that Government of Odisha will own 49 per cent equity stake in the proposed SPV and Tata Power will hold 51 per cent equity with their management.
“Tata Power has several successful public-private partnerships in generation, transmission and distribution in the country.
Recently our focus has been on increasing the company’s existing footprint in distribution of electricity through Public-Private-Partnership (PPP) with discoms.
This tie-up with CESU is the latest such partnership in the distribution business,” said Praveer Sinha, CEO and Managing Director, Tata Power.
“We hope to transform Orissa distribution system with 24×7 reliable power and unmatched customer services with extensive social engagement using our existing experience in distribution of electricity in Delhi, Mumbai and Ajmer,” Tata Power President-T&D Sanjay Banga said.
Tata Power is India’s largest integrated power company.
Together with its subsidiaries and jointly controlled entities, it has an installed capacity of 10,763 MW.
A pioneer in the field, it has a presence across the entire power value chain, generation of renewable as well as conventional power including hydro and thermal energy, transmission and distribution, trading and coal and freight logistics.