Tata Power said it has bagged a 25-year licence for distribution and retail supply of electricity in Odisha’s five circles, together constituting Central Electricity Supply Utility of Odisha (CESU) for about Rs 175 crore.
The five electrical circles constituting CESU are the areas of Bhubaneswar circle I & II, Cuttack, Paradip and Dhenkanal. CESU is spread over 30,000 square km with a population of over 1.4 crores and a consumer base of 2.5 million.
The development comes around four years after licences of three privately-owned distribution companies (discoms) in the state were cancelled due to their inability to improve their financial health.
“The proposed sale of CESU to the company will be through the formation of a Special Purpose Vehicle (SPV) entity in which the Government of Odisha will own 49 per cent in the equity share capital and the Company will hold balance 51 per cent with their management,” stated Tata Power in a filing to the BSE on Monday.
“Expected annual revenue of the proposed SPV will be in excess of Rs 3,000 crore,” it stated. Tata Power’s current consumer base spans Mumbai, Delhi and Ajmer.