Tata Power earns license for distribution, supply of electricity in Odisha’s five circles

Tata Power on Monday said it has emerged as the successful bidder to own the licence for distribution and retail supply of electricity in Odisha’s five circles together constituting Central Electricity Supply Utility of Odisha (CESU). In a regulatory filing, the company said the Odisha Electricity Regulatory Commission (OERC) has awarded the Letter of Intent (LOI) to Tata Power Company Ltd for the acquisition of CESU Power Distribution in Odisha.

The five electrical cirlces constituting CESU are the areas of Bhubaneswar (Electrical Circle – I and II), Cuttack, Paradip and Dhenkanal. The license is being offered for 25 years initially. “The proposed sale of CESU to Tata Power will be through the formation of a special purpose vehicle entity. Tata Power has been informed that Government of Odisha will own 49 per cent equity stake in the proposed SPV and Tata Power will hold 51 per cent equity with their management,” the filing added.