CESC to work with Boston Consulting Group on expansion strategy
BCG is expected to submit a report within six months to CESC which is looking to expand beyond Kolkata
Kolkata power utility CESC Ltd has engaged Boston Consulting Group (BCG) to advise it on expansion strategy in the backdrop of a changing policy framework. The consultancy is expected to submit a report within six months, CESC chairman Sanjiv Goenka said on Wednesday. BCG will also suggest ways to make CESC more customer-friendly.
CESC, which has interests in both traditional thermal power and renewable energy, needs to decide its priorities, Goenka said. “Though we have our own vision about what we want to be…we can’t afford to make any mistake at this crucial juncture by having only a subjective view," he added.
CESC, also a major power distribution company, is looking to expand beyond Kolkata. BCG will advise CESC on ways to expand the distribution business and what should be the ideal business mix of generation and distribution, Goenka said.
CESC produces 1,900 megawatts (MW) of thermal power and a small amount of renewable energy through different subsidiaries. The company is all set to commission a 600MW power plant at Haldia in West Bengal by January. This project, entailing an investment of nearly ₹ 4,000 crore, will be launched in two phases starting in October.
The company is planning to set up a 1,320MW super-critical thermal plant at Dhenkanal in Odisha. It has received most of the statutory clearances and is awaiting coal linkages.
CESC had commissioned a 24MW wind power project at Dangri in Rajasthan last year and planned to commission a second wind power project in the state at Surendranagar in the current fiscal.
The company entered hydropower in 2012 by acquiring two hydroelectric projects under construction in Arunachal Pradesh from the IndiaBulls Group. Earlier this year, CESC also announced it will set up a 106MW solar power plant in Tamil Nadu at an investment of ₹ 95 crore. This would be the firm’s second solar project after it launched a 9MW unit in Gujarat.
CESC announced on Wednesday that its net profit for the June quarter increased 15.2% year-on-year to ₹ 151 crore on the back of a 30.2% jump in net sales to ₹ 1,848 crore.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!