Tata Power secures LoI for Odishas WESCO and SOUTHCO discoms; shares up over 3 pct
Integrated power utility company Tata Power has received a Letter of Intent (LOI) from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odishas five circles of WESCO, the company said in a regulatory filing
Integrated power utility company Tata Power has received a Letter of Intent (LOI) from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha’s five circles of WESCO, the company said in a regulatory filing.
These circles include Rourkela, Burla, Bhawanipatna, Bolangir, Bargargh and six circles of SOUTHCO consisting of Ganjam City, Berhampur, Aksa, Bhanjannagar, Jeypore and Rayagada, the release further said.
At 2:06 pm, the shares of Tata Power were trading at Rs 71.10, up by over 2.7 per cent on the NSE.
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 will enable Tata Power to give services to the consumers of Western part (WESCO) and Southern part (SOUTHCO) of Odisha with geographical spread of more than 47,000 sq km each and will manage network of more than 100,000 ckt. kms. Each, the company filing said.
The license period for the two Distribution Utilities shall be 25 years.
WESCO serves around 2 million consumers while SOUTHCO serves close to 2.3 million consumers, it said.
With this, Tata Power’s consumer base will reach 10 million consumers from the present base of 5.7 million across Mumbai, Delhi, Central part of Odisha and Ajmer, the filing said.
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“We are committed to provide reliable, affordable and quality power supply along with superior customer service, backed by innovative technology,” Praveer Sinha, Chief Executive Officer (CEO) and Managing Director (MD) at Tata Power said.
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