BHUBANESWAR: After Tata Power took over the Central Electricity Supply Utility (CESU) for distribution and retail supply of electricity in five circles, process has been initiated for sale of three other distribution companies. Initiating the privatisation drive of three distribution companies once owned and operated by erstwhile Reliance Infrastructure (R-Infra), the Odisha Electricity Regulatory Commission (OERC) has engaged Crisil, an internationally reputed credit rating company, as transaction advisor for the sale of Southern Electricity Supply Company (SOUTHCO) and Western Electricity Supply Company (WESCO).
Another global consultancy firm Deloitte India is the advisor for the privatisation of North Eastern Electricity Supply Company of Odisha (NESCO). The request for proposal (RFP) documents to participate in the competitive bidding are on sale from November 28, 2019 and will continue till February 6, 2020. The pre-bid (investors) meeting is scheduled on January 3, 2020 for the bidders who have purchased the RFP document till that date.
The last date of submission of bids will be five weeks from the date of issue of revised RFP documents/ clarifications, if any, by the Commission after taking into account the pre-bid queries, sources in the commission said. Interested bidders will have to deposit `5 lakh along with GST at 18 per cent for purchase of RFP documents.
3 discoms put on bid
In case of NESCO, the last date of sale of RFP is January 6 and due date for submitting bids is January 15, the OERC notice said. While SOUTHCO supplies power to consumers in the distribution circles of Behrampur, Aska, Bhanjanagar, Jeypore and Rayagada, WESCO area of operation covers the distribution circles of Rourkela, Burla, Bargarh, Balangir and Bhawanipatna. NESCO supplies electricity to the districts of Balasore, Mayurbhanj, Keonjhar, Jajpur and Bhadrak.
The potential sales would be the first transaction since 2003 privatisation of power distribution in Delhi. The distribution licence of the three Discoms were revoked by the Commission on March 4, 2015 as they failed to meet the licence agreement. OERC, exercising its powers under the Electricity Act, 2003, vests the management and control of the three companies with their assets with the Chairman-Cum-Managing Director, GRIDCO in the interest of consumers and the public at large.