RPGCOM :: January 2010

Bulletin
CESC: Blazing a trail

Buoyancy in demand has powered CESC to clock a 6.5 per cent rise in energy sales in this quarter compared to this quarter in the last fiscal. Demand for power has been rising, with peak demand being 1582 MW on October 16, 2009.

Progress has been smooth in most of the company’s ongoing projects. The 600 MW Haldia project is awaiting financial closure. The project, spread across 388 acre, is waiting for land allocation of the final 40 acres. The company is expecting the land allocation to be completed very soon. Civil works have already begun in this site.

The third 250 MW unit at the Budge Budge power plant, which will take the installed generating capacity to 750 MW, is set for synchronization and is contributing to the system.

The 600 MW Chandrapur project, acquired in August 2009, is moving ahead following financial closure. A CESC team is in China negotiating the best terms for supply for 300 MW turbines.

Work is progressing as per schedule on the other projects as well. The project in Orissa will go into the next standing linkage committee for coal for 12th plan which should happen by March. CESC would need the coal linkage to go ahead. Land for the project is being acquired.
Land acquisition is also underway for the Bihar project. Interestingly, CESC is at the top of the shortlist of companies to handle the Patna distribution circle contract.

The Jharkhand project also seems to be overcoming the initial hurdles. CESC has got a coal mine but there are some issues with land. The location may be marginally shifted to ensure that getting land becomes easier. With an elected government in place, progress is expected to speed up. In the hydel sector, CESC has been shortlisted for at least one state-awarded project and is looking at proposals to build up generation capacity from this source. The 4-season environmental study is on for the 140 MW Lara-Sumta project in HP. CESC is also open to acquisition of other hydel projects.

The company is on the look-out for coal reserves overseas with a life of 10-15 years, or of around 100 million tonne of proven reserves. It is open to investing in such projects or joint ventures, and countries like Indonesia, Mozambique and Australia are on the radar.

In the transmission and distribution segment, the new power evacuation line from Budge Budge to the Kasba substation is expected to be completed in the next few weeks.