Tata Power on Monday announced that it has taken over the management of Central Electricity Supply Utility (CESU) of Odisha.
It received 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, Paradip and Dhenkanal.
As per order issued by OERC, Tata Power will hold 51 per cent equity with management control and the state-owned GRIDCO will have the remaining 49 per cent equity stake in the company, said a statement.
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 T&C losses and offer excellent customer service, it said.
As per the agreement, the company will retain all the existing employees of CESU and will govern them by their existing policy structure.
Praveer Sinha, Tata Power CEO and MD 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 provide 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 testament to this fact," Sinha said.
"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.
Tata Power has received a licence 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, Puri and Dhenkanal with a population of over 1.4 crore and consumer base of 2.5 million.
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