The RP-Sanjiv Goenka Group owned power utility company CESC Ltd. on Wednesday announced that it has won the franchise for electricity distribution in Rajasthan’s Kota and Bharatpur. The agreement was signed with Jaipur Vidyut Vitaran Nigam for distributing power for 20 years.
Sanjiv Goenka, Chairman, CESC in a press conference, said they expect to garner around Rs 750 crore from Rajasthan operations and are committed to a capex of Rs 150 crore. Throwing more light on the above development, he told CNBC-TV18 that he was confident of halving the transmission and distribution (T&D) losses and expects the project to turn profitable in 18-20 months. According to him, returns would be proportionate to investments made.
He added that the agreement was signed on June 17 and the operations will begin in August.
While the Kota distribution franchise is spread over 150 sq km with 1.76 lakh registered consumers, the Bharatpur franchise has an area of 50 sq km with nearly 48,000 registered consumers. The twin franchises are wholly owned subsidiaries of the CESC.
He is very upbeat about the Ujwal Distribution Assurance Yojana (UDAY) scheme and going forward he sees a lot of bidding opportunities for them.
Goenka said the peak load will be 240 MW and the company will be purchasing the power from Rajasthan State Electricity Board at Rs 4.26 per unit. CESC was focussing on increasing its revenue from distribution and would continue to bid for new distribution licenses, Goenka said.
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