Tata Power, an integrated power utility, has received letter of intent (LoI) from the Odisha Electricity Regulatory Commission (OERC) for distribution and retail supply of electricity in Odisha.
The company will supply electricity in Odisha’s five circles of WESCO consisting of Rourkela, Burla, Bhawanipatna, Bolangir, Bargargh and six circles of SOUTHCO consisting of Ganjam City, Berhampur, Aksa, Bhanjannagar, Jeypore and Rayagada.
As per conditions of bid documentation, Tata Power will hold 51 percent equity with management control and the state-owned GRIDCO will have the remaining 49 percent equity stake in the company.
The license enables Tata Power to serve the consumers of western part (WESCO) and southern part (SOUTHCO) of the state with geographical spread of over 47,000 sq km each and will manage network of more than 1,00,000 ckt km each.
The license period for the two distribution utilities will be 25 years.
While WESCO serves close to two million consumers with annual input energy of 7,520 MUs, SOUTHCO serves close to 2.3 million consumers with annual input energy of 3,470 MUs.
With the addition of both the discoms, the company’s consumer base will reach 10 million consumers from the present 5.7 million across Mumbai, Delhi, Central part of Odisha and Ajmer.
The company will retain all the existing employees of WESCO and SOUTHCO and their service conditions will continue as per their existing policy structure.
The company will provide better opportunities and facilities to all the employees to update their knowledge and skills along with an exposure to best practices and cutting-edge technologies as part of change management in WESCO and SOUTHCO respectively.
