Tata Power has received the Letter of Intent (LOI) for supplying electricity to the consumers of two electricity distribution companies (discoms) in Odisha i.e. the Western Electricity Supply Company of Odisha (WESCO) and the Southern Electricity Supply Utility of Odisha (SOUTCO).
WESCO supplies electricity to consumers in the distribution circles of Rourkela, Burla, Balgarh, Bolangir and Bhawanipatna, while SOUTCO serves Behrampur, Aska, Bhanjanagar, Jeypore and Rayagada.
The proposed sale of WESCO Utility and SOUTHCO Utility to Tata Power will be through the formation of a Special Purpose Vehicle (SPV) entity in which the Government of Odisha will own 49 per cent and Tata Power will hold the remaining 51 per cent stake, with management control, Tata Power said in a regulatory filing.
The expected annual revenue of the SPV created for WESCO will be in excess of ₹ 3,300 crore and SPV created for SOUTHCO will be more than ₹ 1,200 crore, Tata Power added.