Cabinet provides approval for organisational restructuring of Railway Board

Tata Power Company Limited has secured the distribution licence for the Central Electricity Supply Utility of Odisha (CESU) for Rs 1.75 billion. Tata Power recently received the letter of intent from the Odisha Electricity Regulatory Commission for the same. The deal values CESU at Rs 3.5 billion. CESU serves five electrical circles – Bhubaneswar Electrical Circles I and II, Cuttack, Paradip and Dhenkanal. The licence is being offered for a period of 25 years. The sale of CESU’s distribution licence to Tata Power will be through the formation of a special purpose vehicle (SPV). The Odisha government will own a 49 per cent equity stake in the proposed SPV while Tata Power will hold a 51 per cent stake with management control.