Odisha, which recently offered three of its power distribution companies (discoms) for privatisation, has received bids from Tata Power and India Power Corporation Ltd.
The bids were called earlier this year for Western, Southern and Northern Electricity Supply Companies, namely WESCO, SOUTHCO and NESCO.
Industry sources said Tata Power has submitted bids for all three discoms, while IPCL has submitted bids for SOUTHCO and WESCO. This effectively makes Tata Power the only bidder for NESCO. Odisha Electricity Regulatory Commission (OERC), which conducted the bidding, could not be reached for comments.
This is Odisha’s second attempt at privatising its power distribution. It already has successful distribution franchisees in different areas of the state.
Feedback Energy Distribution Company (FEDCO) Infra runs distribution franchisee in four circles – Puri, Balugaon, Khurda and Nayagarh areas under CESU, Odisha.
Tata Power recently won power distribution licences for four circles under the Central Electricity Supply Utility (CESU) in Odisha. The licence pertained to the circles of Bhubaneswar, Cuttack, Paradeep and Dhenkanal in CESU area.
After the privatisation, the ownership of the discoms will vest with the private player. The company would manage power purchase, build infrastructure, manage billing and collection and adhere to pre-decided targets of bringing down losses. Delhi and Mumbai have privately-run discoms.
In its annual report, Tata Power said it would not pursue any greenfield or brownfield expansion in thermal power and would explore options in the distribution business in Indian and international markets and acquire transmission assets, this paper reported.
The company further said it would focus to augment transmission infrastructure in Mumbai operations. It added it will also look for suitable opportunities for acquiring few transmission assets through mergers and acquisitions. In its distribution business, Tata Power will also explore services business opportunities in both, domestic and international markets.
Source: Business-Standard