Tata Power yesterday acquired 51% equity stake in TP Central Odisha Distribution Limited (TPCODL) at a consideration of Rs.178.5 crore. GRIDCO Limited will hold balance 49% equity stake on TPCODL.
TP Central Odisha Distribution Limited (TPCODL) was incorporated on 6th April 2020 as a wholly owned subsidiary of GRIDCO Limited (GRIDCO) to carry out the business of Central Electricity Supply Utility of Odisha (CESU).
TPCODL has the rights to carry out the function of distribution and retail supply of electricity covering the distribution circles of Bhubaneswar (Electrical Circle - I and II), Cuttack, Paradeep, and Dhenkanal in the state of Odisha for a period of 25 years effective 1st June 2020.
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 of CESU is around 1,300MW with the annual input energy of 8,400MUs (FY 2018).
Tata Power, which has an installed capacity of 12,742 megawatts, through divestment in non-core assets, plans to bring down its debt from Rs.44,000 crore to Rs.25,000 crore in current fiscal.
The stock price today opened 3.8% higher at Rs.41.05 and rose further by almost 7% to hit an intraday high at Rs.42.25. It has come off the high point but remains in the green at Rs.41 levels.