Tata Power won licence for supply of electricity in Odisha

Tata Power informed the bourses that it has been selected as the successful bidder to own the licence for the distribution and retail supply of electricity in Odisha's five circles, constituting Central Electricity Supply Utility of Odisha (CESU).

The five electrical circles are the areas of Bhubaneswar (Electrical Circle - I and II), Cuttack, Paradip, and Dhenkanal. The license is initially being offered for 25 years. The proposed sale of CESU to the company will be through the formation of a Special Purpose Vehicle (SPV) entity, in which the Government of Odisha will own 49 per cent in the equity share capital and the company will hold balance 51 per cent with their management.

CESU is spread over 30,000 Sq km with population of over 1.4 crore. With this the company’s consumer base is likely to increase to 50 lakh from current 25 lakh. Expected annual revenue of the proposed SPV will be in more than Rs 3,000 crore.

The stock of Tata Power in today’s trade is trading at flat note. At 13.15 hours the stock was trading at Rs 55.80 apiece, up by 0.72 per cent from previous close.