Monday, August 8, 2022

Privatisation: Tata Power to manage power distribution in central Odisha from Jun 1

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  • Tata Power holds 51 percent equity along with 49 percent by Government of Odisha

  • It has said that it will retain all the existing employees of CESU and will reduce AT&C losses

New Delhi: Tata Power has taken over the management of CESU (Central Electricity Supply Utility) of Odisha on Monday and is now responsible for power distribution in the state, the company said. It added that it has received the Letter of Intent (LoI) from the OERC (Odisha Electricity Regulatory Commission) for the distribution and retail supply of electricity in Odisha’s five circles consisting of Bhubaneshwar, Cuttack, Puri, Paradeep and Dhenkanal. As per an order issued by the OERC on May 28, Tata Power will hold 51 percent equity with management control and the state-owned GRIDCO will have the remaining 49 percent equity stake in the company.

Tata Power takes over power distribution, commits to reducing AT&C loss

Tata Power has committed to improve and modernise 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. 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 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 a change in management in CESU,” Tata Power said.

Commenting on the takeover, Praveer Sinha, CEO & MD, Tata Power said, “Our tie-up with CESU is a huge development for Tata Power. We are thankful to the Odisha government and OERC for giving us this opportunity. We are committed to providing reliable, affordable and quality power supply, along with superior customer service, backed by innovative technology. We constantly strive to become the most preferred distribution company in the country. The success of our Delhi, Mumbai and Ajmer Distribution businesses are a testament to this fact.”

“Tata Power endeavors to bring about a positive transformation in Odisha by deploying smart grid technologies to supply reliable and quality power. Our customer-centric approach aims to enhance all aspects of customer services with smooth and efficient power distribution operations,” said Sanjay Banga, President, T &D, Tata Power.

Tata Power has received a license for 25 years

Tata Power has received a license for 25 years. Spread over 30,000  Sq km, CESU has five electrical circles comprising of the areas of Bhubaneswar (Electrical Circle – I and II), Cuttack, Paradip and Dhenkanal with a population of over 1.4 crore and consumer base of 2.5 million. With CESU, Tata Power aims to expand its consumer base to 5 million consumers from the present base of 2.5 million across Mumbai, Delhi, and Ajmer. The average demand for CESU is around 1,300 MW with the annual input energy of 8,400 MUs (FY 2018).

By successfully transforming Delhi and Ajmer to become customer-centric organisations within a short span of time, Tata Power has been able to reduce the AT&C losses from 53.1 percent (July 2002) to less than 8 percent (March 2019) in Delhi, and from 21.6 percent (July 2017) to less than 10 percent (August 2019) in Ajmer. 

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