TPCODL carries out the business of Central Electricity Supply Utility of Odisha (CESU). The acquisition paves the way for taking over the power supply business of five cities in Odisha by Tata Power.
"Tata Power has today acquired 51 per cent equity stake in TPCODL at a consideration of Rs 178.5 crore," a Tata Power statement said.
According to the statement, GRIDCO will hold the rest 49 per cent stake in TPCODL.
TPCODL was incorporated on April 6, 2020 as a wholly-owned subsidiary of GRIDCO to carry out the business of CESU.
Tata Power said it has taken over the management of CESU, after receiving the Letter of Intent from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha's five circles consisting of Bhubaneswar, Cuttack, Puri, Paradeep and Dhenkanal.
As per an order issued by OERC on May 28, 2020, Tata Power will hold 51 per cent equity with management control and state-owned GRIDCO will have the remaining 49 per cent equity stake in the company.
Tata Power has committed to improving and modernising the distribution system in the five circles. The priority of the company is to improve reliability, reduce AT&C losses and offer excellent customer service.
As per the agreement, the company will retain all the existing employees of CESU and will govern them by their existing policy structure.
Tata Power will provide better opportunities and facilities to the employees to update their knowledge and skills along with an exposure to best practices and cutting edge technologies as part of the changed management in CESU.
"Our tie-up with CESU is a huge development for Tata Power. We are committed to provide reliable, affordable and quality power supply along with superior customer service, backed by innovative technology. The success of our Delhi, Mumbai and Ajmer distribution businesses are testament to this fact," Tata Power CEO & MD Praveer Sinha said.
Sanjay Banga, President - T &D, Tata Power said the company endeavours to bring about a positive transformation in Odisha by deploying smart grid technologies to supply reliable and quality power.
"Our customer-centric approach aims to enhance all aspects of customer services with smooth and efficient power distribution operations," he added. KKS
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