Tata Power has received a letter of intent (LoI) from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha's five circles of NESCO.
As per conditions of bid documentation, Tata Power will hold 51% equity with management control and the state-owned GRIDCO will have the remaining 49% equity stake in the company.
With the inclusion of additional distribution utility of Odhisa, Tata Power Co. shall now have privilege to serve entire population of State of Odisha with nearly 9 million consumers shall now experience uniform processes and synergies in operations across the State. This expansion shall shall enhance Tata Power 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 shall serves over 1.9 million consumers with annual input energy of 5,450 million units (MUs). It will manage a network of more than 90,000 CKT kms. for a license period of 25 years.
On a consolidated basis, the power utility's net profit rose 5.7% to Rs 370.93 crore on 8% increase in net sales to Rs 8,289.81 crore in Q2 September 2020 over Q2 September 2019.
Shares of Tata Power fell 0.80% to Rs 74.80. Tata Power is India's largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed/managed capacity of 12,772 mega-watt (MW).
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