CESC plans expansion, to invest Rs 19,400cr

Font Size

Print

Feedback

Email

Discuss

Related Articles

Genpact scouts for acquisitionsBuzzintown to expand its presence to 35 citiesFinMin supports ADAG's borrowing plansDr Reddy's files for marketing Lipitor generic

Kolkata, Jul 27: CESC Ltd, a conglomerate of power, retail and real estate businesses, is planning to raise capital from the market to fund retail expansion and its new 4000mw projects. However, the company is yet to finalise the amount it wants to raise.

CESC has lined up Rs 19,400 crore investments for its power, retail and real estate projects. While the company has decided to invest Rs 1,400 crore in retail and real estate by March 2009, it has not fixed any timeframe for Rs 18,000 crore investments in the power generating projects.

CESC vice-chairman Sanjiv Goenka told reporters after the 29th annual general meeting of the company that starting construction work for the three new power projects at Haldia (2000mw) in West Bengal, Dumka (1000mw) in Jharkhand and Dhenkanol (1000mw) in Orissa depends on the availability of coal blocks or coal linkages.

For implementing the Haldia power project's first phase, which will be generating 600mw, the company has received 300 acres from the government out of its total requirement of 1000 acres. For getting land from the Jharkhand and Orissa governments, CESC will have to show its coal linkage. The company has received water supply clearance for all the three projects.

CESC has applied for a coal block, and is likely to get one in Jharkhand. The coal ministry has announced that it would start the process of allotting fresh blocks from July 30.

Although the Rs 18,000 crore investment has no schedule, Goenka said the company would resort to capital raising at some stage of the projects. "This may be even by the end of 2007-08," Goenka said.

"The capital raising may be either in the form of a rights issue, GDR, IPO or pirvate equity offer. The company will take a final call in October as to which way it will raise funds, in how many phases and the amount," Goenka said.

Of the Rs 18,000 crore investment lined up in power projects, CESC will invest Rs 8000 crore in Haldia, Rs 4000 crore each in Dumka and Dhenkanol, Rs 1000 crore to increase capacity of its Budge Budge generating station (from 500mw to 1000mw) and Rs 1000 crore for vacuation and distribution of power.