Tata Power Secures Electricity Supply Contract In Odisha
Tata Power has been confirmed as the successful bidder to own the license for distribution and retail supply of electricity in Odisha’s five circles together constituting the Central Electricity Supply Utility of Odisha (CESU).
The company stated in a filing that they have received the Letter of Intent (LOI) from Odisha Electricity Regulatory Commission (OERC) for the acquisition of CESU Power Distribution in Odisha.
The areas of Bhubaneswar (Electrical Circle – I and II), Cuttack, Paradip, and Dhenkanal are the five electrical circles constituting CESU. The license is being offered for 25 years initially.
“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 the Government of Odisha will own 49 percent equity stake in the proposed SPV and Tata Power will hold 51 percent equity with their management,” the filing added.
With this acquisition, Tata Power is set to double its total consumer base from 2.5 million to five million consumers.
Commenting on the development, Tata Power CEO & MD Praveer Sinha said “Recently, our focus has been on increasing the company’s existing footprint in the distribution of electricity through Public-Private-Partnerships (PPP) with discoms. This tie-up with CESU is the latest such partnership in the distribution business.”
“We hope to transform Odisha distribution system with 24×7 reliable power and unmatched customer services with extensive social engagement using our existing experience in the distribution of electricity in Delhi, Mumbai and Ajmer,” said Tata Power President-T&D Sanjay Banga.