Tata Power on Friday announced that it has received the Letter of Intent (LOI) for supplying electricity to the consumers of 2 electricity distribution companies (discoms) in Odisha.
•The Western Electricity Supply Company of Odisha Ltd (WESCO) and
•The Southern Electricity Supply Utility of Odisha Ltd (SOUTCO).
Tata Power emerging as the winner in bids for these two discoms in the privatisation exercise.
About WESCO
WESCO supplies electricity to consumers in the distribution circles of Rourkela, Burla, Balgarh, Bolangir and Bhawanipatna, SOUTCO serves Behrampur, Aska, Bhanjanagar, Jeypore and Rayagada.
WESCO serves close to 2.0 million consumers with annual input energy of 7520 MUs
About SOUTCO
SOUTCO serves close to 2.3 million consumers with annual input energy of 3470 MUs.
Consumer Base of Tata Power
Tata Power’s consumer base will reach 10 million consumers from the present base of 5.7 million after the addition of both the discoms.
New Consumer
The licence enables Tata Power to serve the consumers of western part (WESCO) and southern part (SOUTHCO) of Odisha with geographical spread of more than 47,000 sq km each and will manage network of more than 100,000 ckt. kms. each.
Licence Period
The licence period for the two distribution utilities shall be 25 years.
Competitor with Tata Power
The Competitors for the bid with Tata Power are A consortium of India Power Corp. and French government-owned power utility Electricite de France (EDF) were the only two bidders for WESCO and SOUTCO respectively.
Share Holding Pattern
As per conditions of bid documentation Tata Power will hold 51 percent equity with management control and the state-owned GRIDCO will have the remaining 49 percent equity stake in the company
Comment from Tata Power
Praveer Sinha, CEO and MD “It is a proud moment for us. We are thankful to the Odisha Government and OERC for giving us this opportunity.”
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