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.