CESC Ltd in a stock exchange filing today (January 13, 2021) said that its board has decided to reorient and reorganize the company’s power distribution business.
The proposed consolidation will exclude CESC’s power distribution business in Kolkata.
Accordingly, the power distribution business of CESC would now come under Eminent Electricity Distribution Ltd, a wholly-owned subsidiary of CESC Ltd.
Over a period of time and subject to applicable laws, all investments of CESC in the power distribution business (other than its operations in Kolkata and adjoining areas) would be consolidated in Eminent Electricity Distribution Ltd.
CESC added that detailed disclosures would be made when the aforementioned proposal comes into effect.
The power distribution of CESC covers the two roles of distribution licensee and distribution franchisee, and is spread over Kolkata, Greater Noida, Rajasthan and Maharashtra.
In Kolkata, CESC has been an integrated power utility for over a hundred years, and its operations include coal mining, power generation and distribution. The power distribution business is spread over an area of 567 sqkm with a consumer base of 32 lakh.
In Greater Noida (Uttar Pradesh), CESC is a distribution licensee (like in Kolkata) with a consumer base of around 1 lakh and a command area of 335 sqkm.
In Rajasthan, CESC is the distribution franchisee in three circles – Kota, Bharatpur and Bikaner. It took over operations here in FY20. The total area of the three circles is around 381 sqkm, with an aggregate consumer base of 4 lakh.
In Maharashtra, CESC took over as distribution franchisee of the Malegaon area on March 1, 2020. This area, measuring some 25 sqkm, is dominated by industrial (powerloom) consumers, aggregating 1 lakh.
The distribution franchisee business is currently managed by wholly-owned subsidiaries, which are Kota Electricity Distribution Ltd, Bharatpur Electricity Services Ltd, Bikaner Electricity Services Ltd and Malegaon Power Supply Ltd, in respective order discussed above.
The distribution licensee operations in Greater Noida fall under Noida Power Company Ltd, which is a joint venture with Greater Noida Industrial Development Authority, an autonomous body of the Uttar Pradesh government.
The power distribution operations in Kolkata fall directly under CESC Ltd.
Featured photograph relates to CESC’s power distribution business in Rajasthan. (Source: www.s.rpsg.in)
