BHUBANESWAR: AFTER taking over Central Electrical Supply Utility (CESU) in June, Tata Power Company Limited (TPCL), a subsidiary of Tata Group, has emerged as successful bidder for two more distribution utilities (discoms) - SOUTHCO and WESCO.
The Odisha Electricity Regulatory Commission (OERC) on Friday announced that TPCL has been issued letter of intent (LoI) for the two discoms on December 3, 2020. “TPCL will acquire 51 per cent (pc) of the ordinary share capital of the operating company and GRIDCO will continue to own 49 pc of the share capital,” a statement issued by OERC said.
The Tata Group subsidiary has committed to make capital expenditure of Rs 1,363 crore for WESCO and Rs 1,167 crore for SOUTHCO in the first five years to improve safety, technological intervention, upgradation of network system and loss reduction. It will work towards reducing aggregated technical and commercial losses (AT&C) and also collect arrears of both the companies.
As per the RFP documents and LoI, all existing employees of the two utilities as on the date of vesting will be transferred to the deemed licensee. The terms and conditions of their employment after the transfer will not be made inferior to their existing service conditions in any manner, the OERC note said.
The two utilities will continue to meet their power requirement from GRIDCO through the bulk supply agreement to be executed between the deemed licensee and GRIDCO. The current assets and liabilities pertaining to employees, consumers and suppliers, statutory payments as per the existing books of account of SOTHCO and WESCO will be transferred to the TPCL which will be issued licence for 25 years.
Tata Power will have distribution and retail supply license of electricity in five circles of WESCO consisting of Rourkela, Burla, Bhawanipatna, Balangir, Bargarh and six circles of SOUTHCO consisting of Ganjam city, Berhampur, Aksa, Bhanjanagar, Jeypore and Rayagada.SOUTHCO and WESCO have consumer base of around 23 lakh and 20 lakh respectively.
