Bhubaneswar: Tata Power and India Power Corporation Ltd (IPCL) have submitted bids for three power distribution companies (discoms) offered for privatisation by the Odisha government.
The government had called for the bids for Western, Southern and Northern Electricity Supply Companies — WESCO, SOUTHCO, and NESCO — earlier this year.
Tata Power has submitted bids for all three discoms, while IPCL has done so for SOUTHCO and WESCO, according to a report in Business Standard. This effectively makes Tata Power the only bidder for NESCO.
The Odisha Electricity Regulatory Commission (OERC), which conducted the bidding, could not be reached.
This is Odisha’s second attempt at privatising its power distribution. The three discoms were earlier with Reliance Infrastructure’s BSES in 1999. After a decade of legal disputes and non-performance, the OERC revoked the distribution licence of the Anil Ambani company in 2015.
Later, the state offered some cities under the franchisee model to private companies. Feedback Energy Distribution Company (FEDCO) Infra is the distribution franchisee in four circles — Puri, Balugaon, Khurda, and Nayagarh.
Under a franchisee model, ownership remains with the state. The franchisees earn revenue through billing. Their profit depends on revenue collection.