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    Tata Power bags 25-yearr Odisha discom licence for Rs 175 crore

    Synopsis

    Tata Power has emerged as the successful bidder for the acquisition of CESU Power Distribution in Odisha and thereby own license for distribution and retail supply of electricity in Odisha's five circles together constituting Central Electricity Supply Utility of Odisha (CESU). ​The license is being offered for 25 years initially.

    TATA Power BCCL
    Tata Power Company Ltd has won the bid for acquisition of CESU Power Distribution in Odisha, for 25 years.
    NEW DELHI: Tata Power on Monday said it has bagged a 25-year licence for distribution and retail supply of electricity in Odisha’s five circles, together constituting Central Electricity Supply Utility of Odisha (CESU) for about Rs 175 crore.

    Company chief executive officer and managing director Praveer Sinha said a special purpose vehicle will be formed in which the company will own 51% and the balance 49% will be owned by the Odisha government. The deal values CESU at Rs 350 crore.

    Sinha said the contract puts in place a trajectory for loss reduction of CESU. Tata Power outbid India Power Corporation Ltd for bagging the contract.

    The five electrical circles constituting CESU are the areas of Bhubaneswar circle I & II, Cuttack, Paradip and Dhenkanal. CESU is spread over 30,000 square km with population of over 1.4 crore and consumer base of 2.5 million.

    The average demand of CESU is around 1,300 mw. Presently, 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, the statement said.

    “We hope to transform Orissa distribution system with 24 x7 reliable power and unmatched customer services with extensive social engagement using our existing experience in distribution of electricity in Delhi, Mumbai and Ajmer.” said Tata Power President (transmission and distribution) Sanjay Banga.

    Tata Power has a similar PPP model formed after privatisation of Delhi Vidyut Board in 2002 where the aggregate technical and commercial losses have been brought down to 8% from 53%.

    Tata Power has an installed capacity of 10,763 mw, with renewable energy assets in solar and wind accounting for 30% of the company’s portfolio.


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