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Tata Power in demand after securing LOI for Odisha's discoms

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Last Updated : Dec 04 2020 | 3:04 PM IST

Tata Power Company jumped 3.76% to Rs 71.8 after the company secured letter of intent for Odisha's WESCO and SOUTHCO discoms.

The company has received LOI from the Odisha Electricity Regulatory Commission (OERC) for the distribution and retail supply of electricity in Odisha's five circles of WESCO and six circles of SOUTHCO. As per conditions, Tata Power will hold 51% equity with management control and the state-owned GRIDCO will have the remaining 49% equity stake in the company.

The license enables Tata Power to serve the consumers of Western part (WESCO) and Southern part (SOUTHCO) of Odisha with geographical spread of more than 47,000 Sq km each and will manage network of more than 100,000 ckt. kms. each. The license period for the two Distribution Utilities shall be 25 years.

Shares of Tata Power have added nearly 5% in two days. The stock hit a 52-week high of Rs 73.6 in intraday today.

Tata Power is one of India's largest integrated power company and together with its subsidiaries & jointly controlled entities, it has an installed/ managed capacity of 12,772 MW.

On a consolidated basis, the power utility's net profit rose 5.74% to Rs 370.93 crore on 7.97% increase in net sales to Rs 8,289.81 crore in Q2 September 2020 over Q2 September 2019.

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First Published: Dec 04 2020 | 2:03 PM IST

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