OERC cancels distribution licence of Reliance Energy's discoms in Odisha

Three Reliance-managed discoms in Odisha- Wesco, Nesco, Southco- were withdrawn due to unsatisfactory performance

 

The Odisha Electricity Regulatory Commission (OERC) has cancelled licences of three power distribution companies (discoms), Nesco, Wesco, and Southco, all owned by Anil Ambani-controlled Reliance Infrastructure Ltd.

The OERC has temporarily handed the management of the three to Gridco (formerly Grid Corporation of Odisha), which holds 49 per cent stake in the companies. RIL owns 51 per cent share in these.

OERC has appointed Gridco’s chairman and managing director, Hemant Sharma, as the administrator of the discoms, responsible for retail supply in the northern, western and southern regions of the state.

The licences were cancelled over financial unsustainability, disobeying OERC orders on improving supply efficiency, and violation of the supply pact with the state, among others, said an OERC official.