After CESU, three other distcoms will be privatized

3/01/2020 at 5:24 PM

Bhubaneswar, 3/1: After the Central Electricity Supply Utility (CESU), three other power distribution companies (distcoms) will be privatized. The privatization of Western Electricity Supply Company (WESCO), Southern Electricity Supply Company (SOUTHCO) and Northern Electricity Supply Company (NESCO) will be carried out as per the guidelines of the Odisha Electricity Regulatory Commission (OERC), said state’s Energy Minister Captain Dibyashankar Mishra.

Already CESU has been privatized with Tata Power taking 51 percent share of the power distribution company. Now, Tata Power will be responsible for supply power to about 25 lakh consumers under 5 electricity circles, which were the control of CESU. Tata Power will be granted license for power distribution and retail power supply to Bhubaneswar I and II, Cuttack, Paradip and Dhenkanal circles for 25 years. While Tata Power will hold 51 percent of CESU, rest 49 percent share will remain with the state government.

CESU has sustained 31.72 percent transmission and distribution (T&D) loss and 34.07 percent aggregate technical and commercial (AT&C) loss. A target has been set to bring down AT&C loss to 22.57 percent by 2023 through privatisation. Besides, it has been targeted to recover outstanding dues of Rs 200 crore by the said period.

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