Business Daily from THE HINDU group of publications
Saturday, Jul 22, 2006
Industry & Economy - Power
States - West Bengal
For the proposed new capacity of 2,000 MW at Haldia, land acquisition is on.
The project will be spread out in two phases.
The Haldia plant will either be a division of CESC or a separate subsidiary might be floated.
Kolkata , July 21
Power utility major CESC Ltd, the flagship company of the RPG Group, has short-listed two companies after studying several bids it received through a global tender for setting up the 250 MW power plant at Budge Budge in West Bengal.
These two companies are Bharat Heavy Electricals Ltd (BHEL) and the Korea-based Doosan Heavy Industries & Construction. According to Mr Sanjiv Goenka, Vice-Chairman of CESC, one of these two companies would be selected shortly.
Mr Goenka was talking to reporters after addressing shareholders at the 28th annual general meeting.
Haldia plant plans
Talking about the proposed new capacity of 2,000 MW at Haldia, he said, land acquisition was currently on. The project would be spread out in two phases. He hoped that it would be ready within the next five years.
The Haldia plant would either be a division of CESC or a separate subsidiary might be floated for this company. At present the company wastrying hard to get some coal blocks in that region.
Mr Goenka was critical of the Government's policy of allotment of coal blocks. He said all the good coal blocks were either being allotted to Coal India Ltd or the central power major, NTPC.
In this context, he added that though CESC was not averse to imported coal for the Haldia plant because it would not affect the finances, still he preferred that the power producer should have its own coal blocks.
Though the size of the Haldia plant is being fixed at 2000 MW, still its division is not yet being finalised. It could be either 4x500 MW or 3x660 MW.
In the first quarter of 2006-07, CESC registered net sales of Rs 674 crore, same as that of the corresponding quarter of 2005-06. Profit after tax increased to Rs 55 crore from Rs 41 crore.
"Despite a 7 per cent reduction in tariff we have succeeded in maintaining last year's sales because demand has grown by 4-5 per cent," he said. Profit before tax increased to Rs 62 crore from Rs 45 crore.
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