Odisha govt to privatise state-owned power distribution companies
The Odisha government’s approval is now awaited to take it ahead
The government of Odisha is set to privatise four state-owned electricity distribution companies.
Crisil has been given the mandate for managing the sale of Western Electricity Supply Utility of Odisha (WESCO) and Southern Electricity Supply Utility of Odisha (SOUTCO). Deloitte on the other hand has the mandate for North Eastern Electricity Supply Company of Odisha (NESCO). The drive is headed by the Odisha Electricity Regulatory Commission (OERC).
Odisha has an average power demand of 4,000 MW. While WESCO supplies electricity to consumers in the distribution circles of Rourkela, Burla, Balgarh, Bolangir and Bhawanipatna, SOUTCO supplies consumers in the distribution circles of Behrampur, Aska, Bhanjanagar, Jeypore and Rayagada.
NESCO supplies electricity to the districts of Balasore, Mayurbhanj, Keonjhar, Jajpur, and Bhadrak. The potential sales will be the first transaction since the 2003 privatisation of power distribution in Delhi.
Tata Power Company has emerged as the sole contender to acquire Central Electricity Supply Utility of Odisha (CESU Odisha). PricewaterhouseCoopers is managing the sale of CESU. Tata Power was the only technically qualified bidder for CESU Odisha. The financial bids have opened.
The Odisha government’s approval is now awaited to take it ahead. Feedback Energy Distribution Company (FEDCO) and India Power Corporation had also placed a joint bid for CESU Odisha.