We Hope To Transform Odisha Distribution System With 24x7 Reliable Power: Tata Power

Bhubaneswar: In a major development, the Odisha Electricity Regulatory Commission (OERC) has reportedly awarded the Letter of Intent (LOI) to The Tata Power Company Limited informing the Company's selection as the successful bidder to own the licence for the distribution and retail supply of electricity in Odisha's five circles, together constituting Central Electricity Supply Utility of Odisha (CESU).

Tata Power, in a release on Monday, stated that the five electrical circles constituting CESU are the areas of Bhubaneswar (Electrical Circle - I 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 1,300MW with the annual input energy of 8,400MUs (FY 2018). Presently, Tata Power has a total consumer base of 2.5 million across Mumbai, Delhi and Ajmer and with acquisition of CESU, its consumer base would double and touch 5 million consumers.

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 a 49% equity stake in the proposed SPV and Tata Power will hold 51% equity with their management.

Praveer Sinha, CEO & MD, Tata Power said, "Tata Power has several successful public-private partnerships in generation, transmission & distribution in the country. 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 x7 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 Sanjay Banga-President-T&D, Tata Power.

Tata Power will supply electricity in Odisha’s five circles constituting the Central Electricity Supply Utility of Odisha (CESU). Read more: https://t.co/gjMGAd2XkD #ThisIsTataPower pic.twitter.com/goDIUbR42C

— Tata Power (@TataPower) December 23, 2019

Comments from OERC officials is awaited. The story will be updated once we receive official confirmation.

Tata Power has vast experience in power distribution sector with its presence in Mumbai, Delhi and Ajmer. Tata Power has been a benchmark performer in Delhi, wherein similar PPP model was formed after privatisation of Delhi Vidyut Board in 2002. AT&C losses have been brought down from a high of 53 per cent in 2002 to around 8 per cent.

[Source: Tata Power Press Release]