Tata Power acquires majority stake in TP Southern Odisha Distribution and TP Western Odisha Distribution
Tata Power rose 2.63% to Rs 84 after the company announced completion of acquisition of 51% equity shares of TP Southern Odisha Distribution and TP Western Odisha Distribution.Tata Power announced that it has taken over the management and operations of WESCO and SOUTHCO upon completion of sale process. Now, WESCO and SOUTHCO will operate under the company name as TP Western Odisha Distribution (TPWODL) and TP Southern Odisha Distribution (TPSODL) respectively. As per order issued by the Odisha Electricity Regulatory Commission (OERC), Tata Power holds 51% of equity with management control and the state-owned GRIDCO will have the remaining 49% equity stake in the company.
TPWODL shall now be responsible for the distribution and retail supply of electricity in five circles of WESCO covering 2 million consumers with annual input energy of 7520 MUs in areas of Rourkela, Burla, Bhawanipatna, Bolangir, Bargargh, while TPSODL will be responsible for the distribution covering 2.3 million consumers with average energy inputof 3470 MUs and retail supply of electricity in six circles of SOUTHCO in areas of Ganjam City, Berhampur, Aksa, Bhanjannagar, Jeypore and Rayagada.
With this takeover, the company's distribution circles will expand to the western (TPWODL) and southern part (TPSODL) of Odisha with geographical spread of more than 47,000 sq km each. It will manage a network of more than 100,000 CKT. KMs. each for a license period of 25 years.
With the inclusion of two additional distribution utilities, Tata Power expands its consumer base to 9.5 million from the present base of 5.2 million across Mumbai, New Delhi, Central part of Odisha and Ajmer.
Tata Power is one of India's largest integrated power company and together with its subsidiaries & jointly controlled entities, it has an installed/ managed capacity of 12,772 mega-watt (MW).
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.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)