Tata Power NSE 1.56 % on 1st February said that it has received a letter of intent (LOI) from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in the north eastern part of the state. The company has received the letter of intent from OERC for Odisha's 5 circles of NESCO constituting the areas of Balasore, Bhadrak, Baripada, Jajpur and Keonjhar, Tata Power said in a regulatory filing.
Tata Power said as per conditions of bid documentation it 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 Odisha, Tata Power shall now serve the entire population of Odisha with nearly nine million consumers experiencing uniform processes and synergies in operations across the state.
This development is expected to enhance Tata Power's consumer base to nearly around 12 million from the present base of 9.6 million across Mumbai, New Delhi, Ajmer, central, southern and western parts of Odisha, the company added.
With this takeover, Tata Power said its distribution circles will expand to the North Eastern Electricity Supply Company of Odisha Ltd (NESCO) with geographical spread of more than 27,500 sq.km and shall serve over 1.9 million consumers with annual input energy of 5450 MUs (million units).