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CESC enters power distribution business in Rajasthan


Power utility CESC has signed a franchisee agreement for power distribution in Kota and Bharatpur in Rajasthan from August, which is likely to generate Rs 750 crore revenue for the company.

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“Last Friday, we signed a franchisee agreement with Jaipur Vidyut Vitaran Nigam for 20-year period power distribution and we will begin operations from August,” CESC chairman Sanjiv Goenka said today.

The company, he said, will pump in Rs 150 crore in the first year for both operations.

It is expected to serve nearly 2.3 lakh consumers, about half of which comprise industrial or commercial consumers spread over 200 sq km.

CESC is already into power distribution in Noida, besides Kolkata and Howrah.

The company floated two SPVs for the license and won the bid by paying the highest for input power at Rs 4.26 a unit from Rajasthan state electricity board.

Goenka said bringing down the transmission and distribution loss to 30 per cent will be a challenge “but we have the knowledge to manage that from our experience in Kolkata and Noida”.

The company aims to increase revenue from distribution and will continue to bid for new distribution licences as and when the opportunity comes up.


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