Tata Power Limited on June 01, 2020, announced that it had completed the acquisition of a 51 percent stake in TP Central Odisha Distribution Ltd (TPCODL) for Rs 178.5 crore.
TPCODL carries out the business of the Central Electricity Supply Utility of Odisha (CESU). The acquisition will pave the way for taking over the power supply business of five cities in Odisha by Tata Power.
Tata Power Limited is an Indian electric utility company based in Mumbai, Maharashtra, India, and is part of the Tata Group. The core business of the company is to generate, transmit, and distribute electricity. With an installed electricity generation capacity of 10,577 MW, it is touted as India's largest integrated power company.
"Tata Power has today acquired 51 percent equity stake in TPCODL at a consideration of Rs 178.5 crore," a Tata Power Limited in its statement said.
According to the statement, GRIDCO will hold the rest 49 percent stake in TPCODL.
Reportedly TPCODL was incorporated on April 6, 2020, as a wholly-owned subsidiary of GRIDCO to carry out the business of CESU.
Tata Power also said in its statement that 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.
Tata Power has through this takeover committed to improving and modernizing the distribution system in the five circles. The priority of the company will be 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 also provide better opportunities and facilities to the employees to update their knowledge and skills along with exposure to best practices and cutting-edge technologies as part of the changed management in CESU.
Tata Power CEO & MD Praveer Sinha had to this effect stated 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 is a testament to this fact.
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