Tata Power Gets LoI to Operate Power Distribution in Odisha’s North Eastern Parts

In a bid to create a successful PPP model in power distribution in Odisha, Odisha Electricity Regulatory Commission (OERC) has provided Letter of Intent (LOI) to utility giant Tata Power for the distribution and retail supply of electricity in Odisha’s 5 circles of NESCO constituting the areas of Balasore, Bhadrak, Baripada, Jajpur and Keonjhar.

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

With the inclusion of additional distribution utility of Odhisa, Tata Power would now have privilege to serve entire population of State of Odisha with nearly 9 million consumers would now experience uniform processes and synergies in operations across the State.

This expansion would enhance the company’s consumer base to nearly 12 million from the present base of 9.6 million across Mumbai, New Delhi, Ajmer, Central, Southern and Western parts of Odisha.

Commenting on the development, Praveer Sinha, CEO & MD, Tata Power said that, “it is a proud moment for to have been given the opportunity to serve people of Odisha. We are committed to provide reliable, affordable and quality power supply along with superior customer service, backed by innovative technology. We are thankful to the Odisha Government and Odisha Electricity Regulatory Commission for giving us this opportunity and reaffirming Tata Power’s commitment of ‘Lighting up Lives’ for the people of Odisha.”

With this takeover, the company’s distribution circles will be expanding to the North Eastern Electricity Supply Company of Odisha Ltd (NESCO) with geographical spread of over 27,500 sq km and shall serves over 1.9 million consumers with annual input energy of 5450 MUs. It would manage a network of over 90,000 CKT. KMs. for a license period of 25 years.

The company together with its subsidiaries and jointly controlled entities has an installed and managed capacity of 12,772 MW. A pioneer in the field, it has a presence across the entire power value chain - generation of renewable as well as conventional power including hydro and thermal energy, transmission & distribution, trading and coal and freight logistics.

With nearly 2.6 GW of renewable energy assets in solar and wind accounting for 30 per cent of the company’s portfolio, the company has strong position in clean energy generation.