Tata Power secures distribution license for CESU

Tata Power Company Limited has emerged as the successful bidder for securing the distribution licence for the Central Electricity Supply Utility of Odisha (CESU). The company recently received a letter of intent from the Odisha Electricity Regulatory Commission (OERC) for the same. CESU serves five electrical circles, including Bhubaneswar (electrical circles I and II), Cuttack, Paradip and Dhenkanal. The licence is for 25 years. The sale of CESU’s distribution licence to Tata Power will be through the formation of a special purpose vehicle (SPV) at an estimated value of Rs 1.75 billion. The Odisha government will own a 49 per cent equity stake in the proposed SPV while Tata Power will hold the remaining 51 per cent stake along with management control.

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