Mumbai, Oct 18: The merger of the three Tata Electric Companies (TEC) was completed on Wednesday, with the High Court of Judicature at Bombay sanctioning the scheme of amalgamation of the two smaller Tata electric companies, The Andhra Valley Power Supply Co and The Tata Hydroelectric Power Supply with The Tata Power Co Ltd.This merger would enable Tata Power, which is currently the country's largest private power sector company to have a much stronger balance sheet and target larger projects in future, a Tata group statement said on Wednesday.
The merger is now expected to further accelerate the growth of Tata Power. With plans being drawn up by the company to go into related infrastructure of broadband communication and energy, the company, the statement said, was positioning itself as a national player in the energy and communications sector.
Top sources in the Tata group told The Financial Express that the merger has now paved the way for Tata Power to emerge as a key national player in both the power sector and related new economy initiatives.
For background, in June 2000, the TEC board announced its plan to merge the two smaller companies with Tata Power to create a stronger entity. Necessary approvals were obtained in August 2000 and the process of merger commenced thereafter.
TEC is also expected to unveil its results for the second quarter on Thursday.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.