At present, CESC purchases 1,750 million units (mu) per year from WBSEB at an average cost of Rs 2.17 per unit and wants to reduce the import to 1,2000mu.

Addressing the 21st annual general meeting of the company here on Thursday, CESC chairman RP Goenka said the the company's cost of generation from Budge Budge is Re 1 less than the cost of power imported from WVSEB. CESC is being compelled to import 6000mu more from WBSEB that what it requires. In order to accommodate this, it is backing down its own power stations and CESC consumers are bearing a burden of almost Rs 60 crore, which is avoidable.

Budge Budge second unit was synchronised in March 1999 and began commercial operations fromJuly.

"If CESC is allowed to make full use of Budge Budge units, we will purchase less from WBSEB. But our pleas to reduce imports from WBSEB have so far yielded no results," the senior Goenka lamented.

CESC vice-chairman Sanjiv Goenka, however, said that the company will take "actions" on the issue. Asked whether it would be legal one, the junior Goenka said, "I have not talked of legal actions", indicating that further negotiations with WBSEB will be taken up vigourously.

CESC chairman said in order to improve efficiency of the company, three consultants of international repute have been appointed. They are Ernst & Young, Andersen Consulting and PricewaterhouseCoopers. They have been given the mandate to explore areas of efficiency improvement and cost reduction. For example, they are doing a total review of the billing system and looking into opportunities that will result in overall reduction of cost of generation.

Sanjiv Goenka said that their reports are expected after the Pujas and action planswill be taken up thereafter.

The junior Goenka said that no decision has yet been taken on the closure of Mulajore and New Cossipore thermal power stations which employ more than 2,000 people. CESC as a whole employs more than 14,000 people.

West Bengal government has recommended closure of these old, outdated and inefficient thermal power plants. The 60mw Mulajore plant is 60 years old and runs at a plant load factor (PLF) of 56 per cent (4 per cent less than 1997-98 fiscal), while 130mw New Cossipore is 50-year old and runs at 57 per cent PLF. Cost of generation at these power plants are high. Moreover, there are problems of pollution.