Tata Power gets letter of intent for 2 Odisha discoms 

By: |
December 4, 2020 10:30 PM

The priority of the company is to improve reliability, reduce AT&C (aggregate technical and commercial) losses and offer excellent customer service.

The licence period for the two distribution utilities shall be 25 years. (Photo source: IE)

Tata Power on Friday said that it has received letter of intent (LOI) for Odisha’s WESCO and SOUTHCO power distribution utilities (discoms).

Tata Power has received the Letter of Intent from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha’s five circles of WESCO and six circles of SOUTHCO, a company statement said.

As per conditions of bid documentation, Tata Power will hold 51 per cent equity with management control and the state-owned GRIDCO will have the remaining 49 per cent equity stake in the company.

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.

The licence period for the two distribution utilities shall be 25 years.

Expected annual revenue of the SPV (special purpose vehicle) created for WESCO will be in excess of Rs 3,300 crore while that for the SPV created for SOUTHCO will be more than Rs 1,200 crore, it added.

Tata Power is committed to improving and modernising the distribution system in Western and Southern Odisha, it added.

The priority of the company is to improve reliability, reduce AT&C (aggregate technical and commercial) losses and offer excellent customer service.

The company will retain all the existing employees of WESCO and SOUTHCO and their service conditions shall continue as per their existing policy structure, it said.

With the addition of both the discoms, Tata Power’s consumer base will reach 10 million consumers from the present base of 5.7 million across Mumbai, Delhi, Central part of Odisha and Ajmer.  

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