Bses To Launch Joint Venture With Gridco

The company has taken over as the management contractor for the transmission and distribution of power in three circles- Cuttack, Bhubaneswar and Dhenkanal. The term of the contract is for three years.

However, the company plans to negotiate for a long-term contract after 18 months. As per the present contract, BSES will be accorded the status of a preferred party for long-term licence. But the BSES would prefer to have Gridco as a joint venture partner in a permanent arrangement, said R V Shahi, chairman-cum-managing director of the power distribution company.

He said before negotiations for the long-term contract begins all the modalities for asset evaluation and its transfer have to be finalised. At present, all the transmission and distribution assets in the state belong to Gridco.

Although Shahi did not elaborate on the structure of the proposed joint venture and its equity holding, sources feel, the transmission and distribution assets of Gridco would be deemed as its equity stake in the new company.

As the management contractor for power distribution in the state's three circles, the BSES will be responsible for working in tandem with the Gridco staff in power supply, revenue collection and augmentation of the grid system.

We are here to work as managers overseeing the functioning of all the crucial departments and help Gridco discharge its responsibility in a more effective manner