The companies selected earlier have been asked to submit their technical and commercial bids by December 9. Gridco, which is undertaking the distribution privatisation, is also planning to finalise the new tariff structure by November 15. It is holding discussions with the regulatory authority regarding tariff-related issues which are important for private companies for their financial evaluation of the venture.

Orissa, which initiated electricity reforms in the state some years ago, has divided the distribution network into four zones and formed separate companies for each zone -- Cesco, Nesco, Southco and Wesco. The fourcompanies are being privatised through the joint venture route. The private partner will be allowed to hold 51 per cent stake in each of the zonal companies. These companies are expected to be in place by the next year.

The state has 40 per cent transmission and distribution losses in the region -- the highest in the country -- and is making concerted efforts to reduce the losses through privatisation of distribution networks.

Among the 11 bidders, the Mumbai-based utility major BSES is the only independent bidder. The balance 10 are consortium bids. These include consortium of Tata Electric Companies with Viridian group and Northern Ireland Electricity; Reliance Industries with ESKOM; National Grid Company with Energy Australia and Modicorp; Hydro Quebee International with HEG; Electricite de France (EDF) with Infrastructure Leasing & Financial Services (IL&FS); Singapore Power with Grasim Industries; Enron Distribution Venture MHC with EMCO Transformers; Cal Energy with Northern Electric Plc andDishergrah Power Supply; United Utilities with Amp Life and The Indure; and AES Corporation with Jyoti Structure.

During the site visit, these companies will have an opportunity to examine the existing infrastructure facility, consumer profile and past record on the revenue earned from these areas. "The evaluation is essential for deciding future prospects and bid price of the proposal," said a participating company.

Each company can compete for a maximum of two zones. The technical and commercial bids are to be submitted at the same time but the commercial bids will be opened only to the companies which get selected in the technical bids.

This is the second attempt of the state to privatise the distribution network. Earlier, it had given the management contract for distribution to the BSES which, however, was withdrawn subsequently and the state decided to go in for the joint venture route.