Tata Power Company, after its successful power distribution venture in Delhi, is now poised to enter the distribution business in the state of Jharkhand.

Tata Power is in talks with the Jharkhand government for distribution of surplus power in the areas near and around Jamshedpur, which is already drawing power from Tata Power’s power generation utilities.

Tata Power managing director F Vandrevala said that the company has undertaken a feasibility study for the distribution of power in areas near and around Jamshedpur.

The cities contemplated for privatisation of power distribution by the Jharkhand government include Ranchi, Jamshedpur and Dhanbad.

Jharkhand government authorities said that the company will also have to undertake rural electrification as their responsibility. Tata Power and Damodar Valley Corporation (DVC) were earlier called for talks with the state government authorities on the issue of distribution.

Under the deal, Tata Power will have to sell power Rs 2.75 per unit for 10 years. The company will also avail of the subsidies which were earlier being given to the Jharkhand State Electricity Board, if the proposal to distribute power works out. Jharkhand will be the new avenue for growth for Tata Power and will reflect in a large way on the company’s topline.

Tata Power has already been granted permission to add another 120 MW of capacity to its already existing capacity. The Jharkhand government is currently in the process of inviting the industry to invest in the state. The unique selling proposition for the state will be cheap power as the state has huge reserves of coal.

A contingent of the state government headed by its chief minister has been camping in Mumbai since Monday, in an effort to market their state as an investment destinations.

The Jharkhand government also organised roadshows in Mumbai to solicit investment in the state. Jharkhand chief minister Babulal Marandi at an interactive session organised by the Confederation of Indian Industry (CII) here on Tuesday, said that the government is aiming at making it a model state.

The Jharkhand government will also station a representative in Mumbai in order to facilitate investments from Mumbai and to guide investors on opportunities in Jharkhand. The representative will be an officer of the rank of an under-secretary.