NEW DELHI: Tata Power on Monday said it has bagged a 25-year licence for distribution and retail supply of electricity in Odisha’s five circles for about Rs 175 crore. The company said it will form a Special Purpose Vehicle (SPV) entity, meaning a subsidiary, in which the state government will own 49 per cent equity and the remaining 51 per cent will be owned by Tata Power.
“Our focus has been on increasing the company’s existing footprint in distribution of electricity through public-private-partnerships with discoms. This tie-up with CESU is the latest such partnership in the distribution business,” said Praveer Sinha, CEO and MD, Tata Power, adding the company aims to grow its power distribution business four-fold in the next three years.
Together, the five circles spanning across Cuttack, Bhubaneswar (electrical circle — I and II), Paradip and Dhenkanal fall under the ambit of the Central Electricity Supply Utility (CESU) of Odisha. With this deal, Tata Power gets access to another 25 lakh customers in addition to its existing customer base of 25 lakh across Mumbai, Delhi and Ajmer and is expected to rake in annual revenues in excess of Rs 3,000 crore. “We’re looking at 10 million (100 lakh) consumers in the next three years,” Sinha noted.
The company is keen on similar opportunities across other states too. “... a few more places such as Uttar Pradesh and Jharkhand are under consideration.