Tata Power Takes Over CESU, Begins Power Distribution Work in Odisha

Tata Power Takes Over CESU, Begins Power Distribution Work in Odisha

Tata Power has taken over the management of CESU, after receiving LOI from OERC for the distribution and retail supply of electricity in 5 circles of Odisha

Tata Power, India’s largest integrated power utility, has announced that it has taken over the management of the Central Electricity Supply Utility of Odisha (CESU), after receiving the Letter of Intent (LOI) from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha’s five circles consisting of Bhubaneshwar, Cuttack, Puri, Paradeep and Dhenekal.

As per the order issued by the Odisha Electricity Regulatory Commission (OERC) on May 28, 2020, 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.

The firm has committed to improve and modernise the distribution system in the five circles. The priority of the company, as it has stated, 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. It 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 a part of change management in CESU.

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.”

The firm 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).

Tata Power endeavours 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.

In December, we had first reported that Tata Power Company Ltd has won the bid to acquire a major shareholding of 51 percent in CESU.

“We hope to transform Odisha distribution system with 24×7 reliable power and unmatched customer services with extensive social engagement using our existing experience in the distribution of electricity in Delhi, Mumbai, and Ajmer,” Banga had said at the time.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.