India’s largest integrated power company Tata Power is to offer technical services to Benin Distribution Company of Nigeria, marking the company’s foray into the power distribution sector in a foreign country.

Tata is the second domestic discom to enter the Nigerian market after the R P Sanjiv Goenka Group flagship CESC, which had bagged distribution rights for Port Harcourt in the West African nation.

In an interview with Press Institute of India(PTI), Tata Power Managing Director Anil Sardana said the contract was won by the company’s subsidiary Tata Power Delhi Distribution (TPDDL), which has entered into an agreement with three Nigerian firms — Vigeo Power, Gumco and Africa Finance Corporation — to act as technical service provider in network planning, supervision of implementation plan and improvement of efficiencies of the discom, Benin Distribution Company.

According to Sardana, the contract negotiations for the project are under progress with Nigeria’s Bureau of Public Enterprises.

“At present, on ground technical planning has commenced along with preparation of drawing, floating of certification for buying equipment etc,” Sardana said.

Although the Tata boss did not disclose the cost of the Project, he however stated that “Investment from our (Tata’s) side will be very little at this stage, as investment will have to come from the promoters. As of now, TPC will continue to be the technical and O&M managers. But in future, TPC would also have the right to own the discom, if they wish so.”

He explained that “There is an arrangement whereby if we like the venture after a year or two, we have the right to invest or actually take over it as the owners.”

The Nigerian government has decided to privatise 11 state-owned discoms as part of improving the power sector. TPDDL had bid for Eko and Ikeja discoms as a member of a Nigerian consortium, Oando.

For Benin discom, the company had formed a consortium with  Viego Holdings.