CESC enters power distribution business in Rajasthan’s two cities

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Kolkata | Published: June 23, 2016 6:22:37 AM

The RP-Sanjiv Goenka Group owned power utility company CESC on Wednesday said it has bagged the franchise for electricity distribution in Rajasthan's Kota and Bharatpur. The agreement was signed with Jaipur Vidyut Vitaran Nigam for distributing power for 20 years.

The RP-Sanjiv Goenka Group owned power utility company CESC on Wednesday said it has bagged the franchise for electricity distribution in Rajasthan’s Kota and Bharatpur. The agreement was signed with Jaipur Vidyut Vitaran Nigam for distributing power for 20 years.

“We will be making a capital expenditure of R150 crore in the first year in the twin projects. The turnover from them will be around R750 crore,” said the company’s chairman Sanjiv Goenka.
Goenka said the agreement was signed on June 17 and the operations will begin in August.

While the Kota distribution franchise is spread over 150 sq km with 1.76 lakh registered consumers, the Bharatpur franchise has an area of 50 sq km with nearly 48,000 registered consumers. The twin franchises are wholly owned subsidiaries of the CESC.

Goenka said the peak load will be 240 MW and the company will be purchasing the power from Rajasthan State Electricity Board at R4.26 per unit. CESC was focussing on increasing its revenue from distribution and would continue to bid for new distribution licenses, he added.

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