The Tata Power Company Limited has approached the Chhattisgarh State Electricity Regulatory Commission (CSERC) seeking a distribution licence to supply electricity in a large, geographically connected area of Raipur district. The application has been filed under Sections 14 and 15 of the Electricity Act, 2003, and seeks approval to operate as a parallel distribution licensee for 25 years.
The proposed licence area covers four tehsils—Raipur, including the Raipur Municipal Corporation, Dharsiwa, Mandir Hasoud, and Abhanpur. At present, electricity distribution in these areas is handled by Chhattisgarh State Power Distribution Company Limited (CSPDCL), the existing distribution licensee.
Tata Power said the proposed parallel distribution model would support competition in the electricity distribution sector and provide consumers with greater choice. The company has submitted documents to CSERC to demonstrate its financial strength, technical capabilities, organisational structure, and operational experience.
Established in 1919, Tata Power has more than 100 years of experience in the power sector. The company currently operates distribution businesses in Mumbai, Delhi, Ajmer, and Odisha, where it manages four distribution companies. Across its distribution operations, Tata Power serves more than 12 million consumers.
As part of its application, Tata Power has presented a detailed investment and financing plan for developing the proposed distribution network in Raipur. The estimated capital investment is around ₹435 crore. The company plans to finance approximately 70% of this investment, or about ₹305 crore, through debt, while the remaining amount will be supported through equity.
To demonstrate its financial capability, Tata Power submitted a solvency certificate from HDFC Bank confirming solvency of up to ₹3,500 crore. The company has also cited its credit ratings of CRISIL AA+/Stable for long-term debt and CRISIL A1+ for short-term debt. Auditor-certified financial statements show that Tata Power had a net worth of ₹17,045.57 crore in FY 2024-25.
The company has proposed implementing the distribution infrastructure in phases over five years. The network would cater to domestic, commercial, and industrial consumers across the proposed licence area. During the initial period, before its own distribution infrastructure is fully developed, Tata Power has sought permission to use CSPDCL’s existing network. For this arrangement, it would pay wheeling charges as determined by CSERC.
The petition also includes several supporting documents, including affidavits, corporate information, organisational structures, details and resumes of key management personnel, and a five-year business plan.
CSERC will now examine Tata Power’s application and assess whether the company meets the required financial, technical, operational, and regulatory conditions for a parallel distribution licence. The Commission will consider the submitted documents and applicable provisions before deciding on the proposal.
If approved, Tata Power’s entry into Raipur’s electricity distribution sector could introduce a parallel supply option alongside CSPDCL, potentially increasing competition and giving eligible consumers greater choice in selecting their electricity distribution service provider.
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