CESC adds two new distribution networks in Rajasthan

Power utility CESC says it has won a 20-year contract to distribute power in Kota and Bharatpur towns of Rajasthan


CESC says it may take 2 years to stabilise the distribution network with an investment of Rs150 crore and make profits. Photo: Mint
CESC says it may take 2 years to stabilise the distribution network with an investment of Rs150 crore and make profits. Photo: Mint

Kolkata: Power utility CESC Ltd on Wednesday said it had won a 20-year contract to distribute power in Kota and Bharatpur towns of Rajasthan, adding potentially Rs.750 crore to its annual consolidated revenue, but the operations may not immediately be profitable.

CESC will supply power to 176,000 consumers in Kota spread over 150 sq. km, and to 47,641 consumers in Bharatpur spread over 50 sq. km, but the key problem in both towns is high transmission and distribution (T&D) loss. In Kota it is 29.71% and in Bharatpur, it is 27.43%.

It may take two years to stabilise the distribution network with an investment of Rs.150 crore and make profits, said Sanjiv Goenka, head of the RP-Sanjiv Goenka group, which controls CESC.

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