Power discom CESU to get new name ‘TPCODL’ from June
BHUBANESWAR: The Odisha Electricity Regulatory Commission (OERC) has issued an order vesting power distribution company Central Electricity Supply Utility (CESU) with the Tata Power Company Limited (TPCL) with effect from June 1.
TPCL will have 51 per cent of equity in the new venture, while state bulk supplier Gridco will have a share of 49 per cent in the special purpose vehicle (SPV). After June 1, the CESU will be known as Tata Power Central Odisha Distribution Limited (TPCODL).
The OERC had issued letter of intent (LoI) to TPCL last year after this company won the bidding process leaving other companies behind. TPCL has given Rs 178 crore to the state government for acquiring the 51 per cent share from CESU.
Priyabrata Patnaik, OERC secretary, said TPCL is very optimistic about its performance in turning around the utility and has provided a performance guarantee of Rs 150 crore. “The company has assured the commission to reduce aggregate technical and commercial (AT&C) losses according to the OERC’s approved trajectory failing which performance guarantee will be invoked,” he added.
TPCL has assured the OERC to invest around Rs 1,541 crore in coming five years for improvement of power network. It has also assured the commission to collect past arrears of from consumers to the tune of Rs 200 crore.
Patnaik said all the employees of the CESU will be transferred to the new company. It is a big of relief for the staff who were worried about their stability of their jobs, he added.
Odisha is the first state in the country to privatize it’s distribution companies (discoms) way back in 1999. Later the state had revoked license of discoms in 2015. Now again the government has privatised the discom.