The Competition Commission of India (CCI) has approved the acquisition of 51 per cent stake in Odisha power utility NESCO from Grid Corporation of Odisha (GRIDCO).
In a press statement, the commission said, “CCI approves acquisition of 51 per cent of the equity share capital of North Eastern Electricity Supply Company of Odisha by Tata Power Company Ltd from Grid Corporation of Odisha Ltd under Section 31(1) of the Competition Act, 2002, on March 18, 2021.”
It may be recalled that in early February 2021, Tata Power received the letter of intent from Odisha Electricity Regulatory Commission (OERC) for taking over distribution and retail supply of electricity in Odisha’s five circles of North Eastern Supply Company of Odisha Ltd. (NESCO).
Also read: Tata Power Takes Over Operations Of Odisha Discoms WESCO And SOUTHCO
With NESCO under its fold, Tata Power is entrusted with the discom’s five circles constituting the areas of Balasore, Bhadrak, Baripada, Jajpur and Keonjhar, all lying in the northeastern part of Odisha.
Tata Power will hold 51 per cent equity with management control and the state-owned Grid Corporation of Odisha Ltd (GRIDCO) will be a minority partner with 49 per cent equity stake. The joint venture, a public private partnership, will be the distribution licensee for a period of 25 years.
Full state under Tata Power
With this, the integrated power utility has effectively taken over power distribution activities of the entire eastern state. Over the recent past, Tata Power similarly took over operations of the only three other power discoms in Odisha – CESU, WESCO and SOUTHCO.
(Featured photograph for illustration only)
