Mumbai, June 8 :     In a move to consolidate its electric power generation and supply ventures, the Tatas today announced plans to merge the three Tata Electric Companies - Tata Power Company Ltd, Andhra Valley Power Supply Company Ltd, and Tata Hydro-Electric Power Supply Company. The merger will create a power behemoth with sales of Rs 2277 crore and net profits of Rs 339.3 crore. In a late evening press communique, the Tatas said the board of directors of the three companies will meet on June 14 to discuss the merger proposal. A proposal to 'raise additional capital in an appropriate form' will also be discussed, the statement said. Apart from the two important proposals, the agenda for the meeting will include the consideration of the audited results and the final dividend, if any, for the year ended March 31,2000. The merger news comes against the background of a suspected counter-bid against the Reliance offer to be unleashed by the Tatas for BSES, for which the deadline expires tomorrow. However, the news of the merger came as no surprise to the analysts tracking the three companies. This is because the flagship company in electricity generation - Tata Power - has been steadily increasing its stake in Andhra Valley and Tata-Hydro. Last August, The Telegraph had reported the consolidation exercise. in fiscal 1999, Tata Power Company had increased its holding in two of its associates - Tata Hydro-Electric Power Supply Company Ltd and Andhra Valley Power Supply Company Ltd - by 5.38 and 2.20 per cent respectively. Using the creeping acquisition route, Tata Power raised its stake in Tata Hydro-Electric and Andhra Valley to 10.66 per cent and 15.24 per cent respectively. During the year 1998-99, Tata Power purchased 23,65,200 shares of Tata Hydro-Electric Power Supply Co. Ltd, thereby increasing its holding to 46.89 lakh shares. It also raised its stake in Andhra Valley Power Supply by acquiring 14,58,450 shares during the year under review, thereby increasing its overall holding in that company to a little more than 1 crore shares.