Odisha receives bids from Tata Power, IPCL for three Discoms
Odisha has received bids from Tata Power and India Power Corporation Ltd (IPCL) for three of its power distribution companies (discoms) having invited bids for the same. The bids have been made for Western, Southern and Northern Electricity Supply Companies, namely WESCO, SOUTHCO and NESCO.
Reports say Tata Power has submitted bids for all three discoms, while IPCL has applied for SOUTHCO and WESCO. This makes Tata Power the only bidder for NESCO.
With this move, Odisha continues its ongoing plans of privatising power distribution with the takeover at some circles having already completed by private players.
Feedback Energy Distribution Company (FEDCO) Infra runs distribution franchisee in Puri, Balugaon, Khurda and Nayagarh areas under CESU, Odisha. Similarly, Tata Power recently attained distribution licences for four circles under the Central Electricity Supply Utility (CESU) including Bhubaneswar and Cuttack.
The owners of discoms are liable to manage power purchase, build infrastructure, manage billing and collection and adhere to pre-decided targets of bringing down losses.
Tata Power, in its annual report, had said it will look for suitable opportunities for acquiring few transmission assets through mergers and acquisitions. The company also said it will explore services business opportunities in both domestic and international markets.
Notably, two of India’s biggest cities, Delhi and Mumbai, have privately-run discoms. Odisha too is following suit by allowing private players to take over in many areas of the state.