CESU privatization process begins

Bhubaneswar: Process for divestment of 51% stake in State-run power distribution company Central Electricity Supply Utility of Odisha (CESU) has begun.

Energy secretary Suresh Mohapatra said the Odisha Electricity Regulatory Commission (OERC) has put out an advertisement for appointment of a transaction advisor.

The onus will be on the transaction advisor to offer advice, prepare a detailed information memorandum, market the offer, invite and evaluate the bids, assist OERC during the negotiation with prospective bidders, draw up the agreements and the documents for the transaction and help CESU and OERC and the successful bidder in post-transaction activities like accounting and tax matters.

Source said OERC has invited expression of interest from financial institutions, reputed merchant bankers, investment banks and consulting firms with experience in privatisation or strategic sale.

Earlier, US-based utility firm AES Corporation was managing CESU. After AES withdrew from the job, OERC has been looking after CESU. On the other hand, the government has been searching for a company to take care the affairs of the discom.

“If any company shows interest in managing CESU, the proposal will be considered. Otherwise, OERC will continue with its task of looking after its affairs”, added Mahapatra.