Tata Power has received the letter of intent (LoI) from the Odisha Electricity Regulatory Commission (OERC) for distribution and retail supply of electricity in Odisha’s five circles of NESCO.
The electricity will be supplied to the areas of Balasore, Bhadrak, Baripada, Jajpur and Keonjhar.
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.
With the inclusion of additional distribution utility of Odhisa, Tata Power will now have the privilege to serve the entire population of Odisha with nearly nine million consumers and experience uniform processes and synergies in operations across the state.
This expansion will enhance Tata Power’s consumer base to nearly 12 million from the present base of 9.6 million across Mumbai, New Delhi, Ajmer, Central, Southern and Western parts of Odisha.
With this takeover, the company’s distribution circles will expand to the North- Eastern Electricity Supply Company of Odisha (NESCO) with geographical spread of more than 27,500 sq km and serve over 1.9 million consumers with annual input energy of 5.450 MUs. It will manage a network of more than 90,000 CKT km for a license period of 25 years.