CESC sets aside Rs 450 crore for expansion

CESC, an RPG Group-owned utility firm, has earmarked Rs 450 crore to invest in expanding its transmission and distribution network, said a company's executive.

The company is targeting completion of this project in 2011, the official told NewsWire18.

Once completed, the company's network will be capable of being connected to the national power grid.

Currently, the company's ability to export as well as to import power depends significantly on the state's network, said the executive.

"Therefore, we are planning to build a 220/132 KV grid to facilitate the flow of power from various generating stations to different load centres and create capability to receive the required power to meet the licence area requirements," he said.

Also, given the age of the network and the expected increase in power generation from proposed capacities such as the 250 MW third unit in Budge Budge and the 600 MW generation facility in Haldia, the company will have to strengthen its existing network, he said.

Improvement of its distribution network and getting connected to the national grid will also help CESC close down its New Cossipore plant that has been in use since 1949.

The project will provide additional flexibility in the company's systems, enabling CESC to effectively utilise any off-peak surplus, he said.

Shares of CESC closed at Rs 628.20 on the Bombay Stock Exchange, up 3.42 per cent on Friday.