Tata Power has 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). With this, the integrated power utility has effectively taken over power distribution activities of the entire eastern state.
With NESCO under its fold, Tata Power will now be 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.
The expected annual revenue of the special purpose vehicle to be created for the license of the NESCO power utility is estimated to be over Rs.2,475 crore.
The five aforementioned circles cover a geographical area of more than 27,500 sqkm with over 1.9 million consumers. The annual input energy requirement is an estimated 5,450 million kwh, and the grid network is around 90,000 ckm.
Commenting on this occasion Dr. Praveer Sinha, CEO & MD, Tata Power said, “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.”
Entire Odisha under its fold
With the inclusion of NESCO, Tata Power shall now have privilege to serve entire population of state of Odisha with nearly 9 million consumers shall now experience uniform processes and synergies in operations across the state.
Over the recent past, Tata Power similarly took over operations of the only three other power discoms in Odisha – CESU, WESCO and SOUTHCO. (Read more)
Over 12 million consumers
The taking over of NESCO has enhanced Tata Power’s consumer base to nearly 12 million spread across Mumbai, New Delhi, Ajmer (Rajasthan) and Odisha.
(Please note that the entity NESCO mentioned in this story is also referred to as NORTHCO)
Featured photograph for illustration only
