Bhubaneshwar owns a 135 MW (2x67.5MW) thermal power plant at Anantapur Village in Cuttack District of Odisha.
The company further said the acquisition will require an approval from the Odisha Industrial Infrastructure Development Corporation, apart from a few other clearances, and the indicative period for completion of the acquisition is two months.
After completion of the transaction Bhubaneshwar Power will become a wholly-owned subsidiary of Tata Steel.
The transaction is likely to be completed in two months, Tata Steel said in a notice to the exchanges.
The joint venture company, which was formed in 2006, owns a 135-MW capacity thermal power plant in Odisha.
The acquisition will allow Tata Steel to increase its captive power source to meet growing demand, the company said in the BSE filing.
Tata Steel, a part of the illustrious Tata Group, is an Indian steel manufacturing multinational company. It is a leading player in the domestic market and its production capacity of 27.5MTPA is spread across 26 countries.