New Delhi: Tata Power said Monday it has completed the acquisition of 51 per cent stake in TP Central Odisha Distribution Ltd (TPCODL) for Rs 178.5 crore.
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 (Monday) acquired 51 per cent equity stake in TPCODL at a consideration of Rs 178.5 crore,” a Tata Power statement released here said. According to the statement, GRIDCO will hold the rest 49 per cent stake in TPCODL.
TPCODL was incorporated 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. They did so 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.
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, it said in a statement.
As per the agreement, the company will retain all the existing employees of CESU and will govern them by their existing policy structure. It will also provide better opportunities and facilities to the employees to update their knowledge and skills. The employees will be exposed 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,” Tata Power CEO & MD Praveer Sinha said in the statement.
PNN & Agencies