CESC recast likely in May, no further investment in generation
KOLKATA: The proposed restructuring of the RP Sanjiv Goenka Group flagship company CESC Ltd is expected in May and the company has decided not to infuse fresh funds into power generation.
Sources said that the recast plan for CESC was ready and likely to be announced in the third week of May along with the financial results.
"We see merit in clubbing all generating units together. And the distribution aspect can come under a separate umbrella. I personally don't see the logic of my distribution business in Rajasthan or distribution business in Noida under separate companies," Goenka had said earlier.
The recast could see at least generation and distribution verticals in separate listed entities. The retail company Spencer's which is a CESC subsidiary might also be separated as it nears the break-even stage.
The Rs 32,000-crore RP Sanjiv Goenka Group was evaluating the possibility of re-organising its power business and consolidation of generation and distribution units.
As a long term vision, the group has decided not to invest further in power generation and will rather focus on distribution.
"The group will focus on business with low government intervention and which is regulated and less capital intensive. We will not invest further in generation," sources told PTI.
Currently, the company's total thermal power generation capacity is 2,300-2400MW. The group is expanding its distribution business and recently won a few city distribution rights in Rajasthan.
Sources said that the recast plan for CESC was ready and likely to be announced in the third week of May along with the financial results.
"We see merit in clubbing all generating units together. And the distribution aspect can come under a separate umbrella. I personally don't see the logic of my distribution business in Rajasthan or distribution business in Noida under separate companies," Goenka had said earlier.
The recast could see at least generation and distribution verticals in separate listed entities. The retail company Spencer's which is a CESC subsidiary might also be separated as it nears the break-even stage.
The Rs 32,000-crore RP Sanjiv Goenka Group was evaluating the possibility of re-organising its power business and consolidation of generation and distribution units.
As a long term vision, the group has decided not to invest further in power generation and will rather focus on distribution.
"The group will focus on business with low government intervention and which is regulated and less capital intensive. We will not invest further in generation," sources told PTI.
Currently, the company's total thermal power generation capacity is 2,300-2400MW. The group is expanding its distribution business and recently won a few city distribution rights in Rajasthan.
