Spencer's Retail, the Rs800 crore retail arm of RPG Enterprises, could close down 10 per cent of stores as non-profitable outlets within this year, while opening 300 stores at better locations.
Outlets lost money either because of high rentals or locational disadvantages, admitted Sanjiv Goenka, vice-chairman of CESC which owned the retail chain.
Spencer's currently had 410 stores and aimed to have retail space of 22 lakh square feet in a year from 12 lakh square feet now. Mainly a power generation and distribution unit, CESC had bid for a retail project on Strand Road, with CESC Property in a consortium with realty firm Silver Spring. The proposed 3 lakh square feet retail project would be near the Old Mint.
While power was the core business, CESC was looking at reducing dependence on revenue from one business, Goenka said at CESC's annual general meeting. CESC has bid for the power distribution license of Ranchi district in Jharkhand through its subsidiary Nalanda Power Company, which was setting up with a 2000MW thermal power plant in Bihar’s Bhagalpur district. The Rs10,000 crore, 400 acre plant was a merchant power station.
Jharkhand State Electricity Regulatory Commission had floated request for qualification (RFQ) for the project and CESC and Torrent Power were the shortlisted companies for financial bidding.
Patna city required 360MW and Ranchi district had net requirement of 600MW.
CESC had not applied for distribution rights in Patna.
The first phase of the Bhagalpur project of 3X660MW, costing Rs3250 crore, was slated to be completed by 2012-13.
Coal linkage was from Rajmahal hills. For its Haldia project, CESC would invite engineering, procurement, construction (EPC) bids from august 11. CESC was not sceptical about Chinese bidders. The 1920MW project would be built in two phases for commissioning in 2011-12.
Land acquisition notice had been issued by the district development authority for CESC's 1200MW Dumka project in Jharkhand but coal linkage to increase capacity by another 1000MW was needed. It had linkage from the Mahuagarhi coal block of nearly 110 million ton, enough for 30 years, now.
If all power projects were built within time, CESC generation capacity would rise from 970MW now to over 7250MW by 2012. Net installed capacity should touch over 5500MW by then, Goenka said.
