CESC plans to develop 2 more properties

Power utility CESC Ltd is planning to utilise other non-performing properties, after Park Circus and Mulajore, to fund its new projects.

The RPG group flagship has tied up with the Godrej group for developing a shopping mall at Park Circus.

Besides, it has got permission from the state government for developing an industrial park and real estate in Mulajore, an old generating station at the northern fringes of Kolkata.

Vice-chairman Sanjiv Goenka said the company was looking at optimising resource allocation.

"We need funds for new projects. CESC will look at the option to utilise unused properties to raise funds for new projects," he said. Goenka indicated that the company still has some excess lands at existing generating stations.

The company has already proposed close to Rs 12,000 crore investment in mega power projects.

CESC has generating stations at Budge Budge, New Cossipore, Metiaburuj and Titagarh. Budge Budge and Metiaburuj are in the southern fringes of Kolkata and the other two are on the northern fringes of the city.

The company is now planning to set up mega thermal plant in Haldia and Jharkhand. According to sources, the oldest of the lot, New Cossipore generating station, is likely to be decommissioned in the next 2-3 years. The generating station has a capacity of 100 megawatt.

Sources informed that CESC had a number of large properties as part of its business requirements.

"An in-principle decision has been taken to try and explore unlocking value of investments in some such properties without dislocating the business operation in any manner," said sources.

On the proposed Mulajore project, Goenka said the very old financially viable unit was posing a threat to the environment of a densely populated locality. Goenka earlier said that it could be like the shopping mall project to be developed by CESC and the Godrej group.

According to him, CESC could float a special purpose vehicle for the Mulajore project. The power utility would be the principal promoter for the project.

"There could be a partner for the project but we have not yet finalised anything," he added.