Discom Privatisation: Tata Power And IPCL Bid For Odisha’s Central Electricity Supply Unit  A power sub station near Konark in Odisha. (Photo by Indranil Bhoumik/Mint via Getty Images)

Odisha’s Central Electricity Supply Unit (CESU) which is being privatised after 17 years has received bids from Tata Power and India Power Corporation Ltd (IPCL). This would be first privatisation of a power distribution company (Discom) after the licenses for Delhi Vidyut Board was handed out to Tata Power Delhi Distribution Ltd and BSES Delhi.

The State Electricity Regulatory Commission had called for bids in relation to the sale of CESU in December 2017 with the successful bidder enjoying the right to manage, invest and operate the company for a period of 25 years.

CESU is a potentially attractive option as its distribution area covers 19 per cent of the state’s area with the major cities of Bhubaneshwar, Cuttack, Paradeep, Angul and Talcher falling within its ambit. The revenue potential is estimated to be in the region of Rs 3000 crores with the utility servicing around twenty lakh consumers.

The privatisation effort comes even as the NDA government formulates plans to impose penalties on power distribution companies for load shedding. The financial condition of CESU is not too healthy either with the discom reeling under a debt burden of Rs 2000 crore while receivables stand at Rs 1700 crore.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement