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Tata Power has bagged the licence for supplying power to Odisha for 25 years.
In a filing to the exchanges, Tata Power said that the Odisha Electricity Regulatory Commission (OERC), selected the company for the distribution and retail supply of electricity in Odisha's five circles, together constituting Central Electricity Supply Utility of Odisha (CESU). These five circles span across Bhubaneswar, Cuttack, Paradip and Dhenkanal.
Tata Power will form a Special Purpose Vehicle (SPV) entity in which the Government of Odisha, which will own 49 per cent equity and the remaining 51 per cent by Tata Power.
Recently, our focus has been on increasing the company’s existing footprint in distribution of electricity through Public-Private-Partnerships (PPP) with discoms. This tie up with CESU is the latest such partnership in the distribution business,” said Praveer Sinha, CEO & MD, Tata Power.
Wtih this deal Tata Power gets access to around 50 lakh customers and is expected to rake in annual revenues in excess of Rs 3,000 crore. Tata Power has 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. Tata Power has a similar deal in Delhi,wherein similar PPP model was formed after privatisation of Delhi Viduvt Board in 2002 where AT & C losses have been brought down from 53 per cent in 2002 to around 8 per cent now.
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