Mumbai: Tata Power Company Limited has been selected as a 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). The Odisha Electricity Regulatory Commission (OERC) awarded the Letter of Intent (LOI) to Tata.
The five electrical cirlces 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. 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 Government of Odisha will own 49% equity stake in the proposed SPV and Tata Power will hold 51% equity with their management.
CESU is spread over 30,000 Sq km with a population of over 1.4 crore and consumer base of 2.5 million. The average demand of CESU is around 1,300MW with annual input energy of 8,400MUs (FY 2018). At present, 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.
