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CESC seeks Rs1,000 crore PE funding for power projects

CESC seeks Rs1,000 crore PE funding for power projects
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First Published: Wed, Nov 03 2010. 02 15 PM IST
Updated: Wed, Nov 03 2010. 02 15 PM IST
Kolkata: Power utility CESC Ltd is looking at Rs1,000 crore funding from private equity players for three of its power projects, vice chairman Sanjeev Goenka said on Wednesday.
“We are seeking private equity investment in Haldia Energy Limited,” a wholly-owned unit of CESC that is developing three projects aggregating to 2,500 MW at a total cost of Rs12,500 crore, he told reporters.
The firm is talking to both domestic and overseas PE investors on the premium and exit clause, he added, but declined to divulge the names of the entities.
The deals are expected to close by mid-February 2011, he said, adding he is unsure at this stage whether the firm will seek PE funding for its other projects.
Haldia Energy is developing power projects of 600 MW each at Haldia in West Bengal and Chandrapur in Maharashtra and 1,300 MW at Talcher in Orissa.
The financial closure for Haldia and Chandrapur projects has already been achieved and CESC expects the Orissa project to finance its debt once it receives coal linkages, he added.
Earlier in the day, the firm reported a 23% increase in net profit to Rs155 crore, on net sales of Rs1,090 crore.
Shares in the firm rose more than 5% after the news, and were trading up 2.97% at 1.29 pm in a Mumbai market that was up 0.8%.
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First Published: Wed, Nov 03 2010. 02 15 PM IST