October 07, 2008

CESC to invest INR 18,000 crore in power projects

CESC Ltd said that it would invest INR 18,000 crore in various projects between 2007 and 2012. Out of INR 18,000 crore, INR 8,000 crore would be invested in a 2,000MW power plant that would be set up in Haldia while INR 4,000 crore each in 2 power plants proposed to be set up in Jharkhand and Orissa.

Mr Sanjiv Goenka vice chairman of CESC told BL that INR 1,000 crore would go towards the power facility at Budge Budge facility even as a further INR 1,000 crore would be invested in its distribution network. The funds required for the proposed projects would be generated from internal accruals, debt and other sources such as the capital market, private placements and so on.

According to Mr Goenka, following the merger of the holding company of Spencer’s retail chain with CESC, plans have been firmed up to open 300 more outlets in the current fiscal. He said that an investment of INR 1,200 crore would be made in the group’s retail initiative by March 2009.

During the year ended March 31st 2007, CESC has earned a total income of INR 2,576.98 crore compared with INR 2,587.26 crore in 2005-06. The net profit for 2006-07 is INR 300 crore as against INR 177.47 crore in 2005-06.