By Bizodisha Bureau, Bhubaneswar, February 2, 2021: Tata Power Company Ltd has been awarded the letter of intent (LoI) for the license for electricity distribution and retail supply in Odisha’s five circles of North Eastern Electricity Supply Company of Odisha Limited (NESCO) Utility.

Tata Power took over discoms Southco and Wesco from January 1, 2021. Earlier, in June last year, the company had acquired CESU.

With the present award, the power behemoth will take care of power distribution and retail supply in Balasore, Bhadrak, Baripada, Jajpur and Keonjhar areas.

The license for electricity distribution and retail supply will be initially valid for 25 years and can be extended subsequently.

The proposed sale of NESCO Utility to Tata Power will be through the formation of a special purpose vehicle (SPV) entity in which the Odisha Government will own 49% stake and the company will hold balance 51% with their management.

The company said the SPV’s expected annual revenue will be more than Rs 2,470 crore.