RPG Group’s flagship CESC intends to diversify its power generation fundamentals with a move into the hydel energy sector, where it will spend up to Rs 15,000 crore over six years. The firm could generate about 2,500 MW of hydel power by the end of this period.
The investment will be part of the Rs 35,000 crore that it has earmarked for the 12th Plan (2012-2017), under which it will add 5,000 MW of thermal capacity at a cost of Rs 20,000 crore. “The variable cost in hydel projects are low and on an operating basis, one can expect higher margins. We have been awarded a 140MW hydel project in Himachal Pradesh, which is our first but by no means, our last. We are examining four proposals, one of them being in Bhutan,” RPG vice-chairman Sanjiv Goenka said here on Friday.
It is understood CESC is in talks with some firms for taking over hydel projects. On the thermal generation front, its third 250 MW unit at Budge Budge is ready for commissioning. “Revenues from Budge Budge will start flowing in from this quarter and profits will kick-in from the next financial year,” Goenka said. He added that after financial closure of the 600MW thermal project at Chandrapur in Maharashtra, talks were on with two Chinese firms for equipment procurement.
RPG’s retail business — Spencers Retail — has seen robust growth and expects to break even in 2010-11, Goenka said.
