Bhubaneswar: India’s largest integrated power utility Tata Power Monday announced that it has completed the acquisition of a 51 per cent stake in TP Central Odisha Distribution Ltd (TPCODL) for `178.5 crore. TPCODL carries out the business of Central Electricity Supply Utility of Odisha (CESU).
“Tata Power has today acquired 51 per cent equity stake in TPCODL at a consideration of `178.5 crore,” a Tata Power statement said. According to the statement, GRIDCO will hold the rest 49 per cent stake in TPCODL. The company received the Letter of Intent (LoI) from the Odisha Electricity Regulatory Commission (OERC) to acquire Odisha power utility.
The acquisition paves the way for taking over the power supply business of five cities in Odisha by Tata Power. These five circles are Bhubaneswar, Cuttack, Puri, Paradip and Dhenkanal.
As per the agreement, the company will retain all existing employees of CESU and will govern them by their existing policy structure.
Praveer Sinha, CEO-MD of Tata Power, said, “Our tie-up with CESU is a huge development for Tata Power. We are thankful to the state government and OERC for giving us this opportunity.”
Tata Power has received a license for 25 years. Spread over 30,000 sq/km, CESU has five electrical circles comprising Bhubaneswar (Electrical Circle – I and II), Cuttack, Paradip and Dhenkanal with a population of over 1.4 crore and a consumer base of 2.5 million.
