Tata Power Wins Bids For SOUTHCO & WESCO; Company To Collect Arrears To Tune Of Rs 400 Crore

Bhubaneswar: The Tata Power Company Limited (TPCL) has acquired bids for two electricity distribution companies (discoms) in Odisha—the Western Electricity Supply Utility of Odisha Ltd (WESCO) and the Southern Electricity Supply Utility of Odisha Ltd (SOUTCO).

As per official sources, TPCL has won a 25-year licence for distribution and retail supply of power after its bids were evaluated on Thursday.

In the SOUTCO, TPCL has been granted the Letter of Intent (LoI) and the company will acquire fifty one percent (51%) of the ordinary share capital of the Operating Company and GRIDCO will continue to own forty nine percent (49%) of the ordinary share capital.

As per the RFP documents and LoI, all existing employees of SOUTHCO Utility and WESCO, as on the date of vesting shall be transferred to the Deemed Licensee. The terms and conditions of their employment after the transfer shall not be made inferior to their existing service conditions in any manner.

The TPCL has made commitment to bring down AT&C losses in SOUTHCO to 14.80% in 10 years from the present losses of 35.29%. TPCL has committed to make the following Capital Expenditure in the first five years to improve safety, technological intervention, up gradation of network system and loss reduction.

Earlier TPCL had won the license to operate in five circles after acquiring Central Electricity Supply Utility of Odisha (CESU Odisha) last December.

In the process and on the evaluation of the bids, Tata Power Company Limited (TPCL) was also selected as the successful bidder in WESCO Utility.

The TPCL has made commitment to bring down AT&C Losses in WESCO Utility to 9.08% in 10 years from the present losses of 27.56%.

The power major has also committed to collect arrears of WESCO amounting to Rs. 300 crores in five years time period. The Operating Company will meet its power requirement from GRIDCO through the bulk supply agreement to be executed between the deemed licensee and GRIDCO.

TPCL has also committed to collect arrears of 100 crores under SOUTHCO regions in the next five years.