TPC, 2 others eye Jharkhand distribution pact

KOLKATA: Tata Power (TPC), Torrent Power and CESC are keen to undertake retail power distribution in partnership with Damodar Valley Corporation (DVC) within its command area in Jharkhand. This follows Jharkhand State Electricity Board’s (JSEB) recent decision to relinquish its distribution licence in DVC’s command area.

“DVC had invited expressions of interest (EoIs) for entering into a joint venture with a private power utility to undertake retail power distribution within its command area in Jharkhand. This is since JSEB does not wish to continue with its services there and wants to give away its licence,” DVC chairman AK Burman told ET.

Elaborating, he said: “Three companies — Tata Power, Torrent Power and CESC — are keen to enter into a JV with us. Technical evaluation of their bids is on the following which financial bids will be assessed.” Indications are that DVC will opt for a 50:50 JV with the selected private player. It may be mentioned that CESC had independently approached DVC to enter into power distribution in Jharkhand through the joint venture route. But DVC decided to invite EoIs, following which three power utilities, including CESC have shown interest.

“CESC’s competency lies in retail distribution. It is interested in joining hands with DVC for a distribution venture in Jharkhand, but they (DVC) will have to take the final call in selecting a partner,” CESC’s managing director Sumantra Banerjee told ET. Incidentally, CESC’s wholly-owned subsidiary Cescon has entered into a retail power distribution in JV with Greater Noida Industrial Development Authority at Greater Noida.

“At its board meeting a few weeks back, JSEB decided to give away its distribution license in DVC command areas (Dhanbad, Bokaro, Hazaribagh and Giridih). The decision stemmed from operational and financial issues, a senior DVC official said.