Power utility CESC Ltd Friday said the company will focus more on franchisee distribution licencing opportunities and there was no major plan to ramp up renewables.
On the sidelines of the AGM of the CESC, company chairman Sanjiv Goenka said the return scenario for renewables is not very encouraging.
Tariffs continue to erode and there are other concerns that may cause trouble for renewable projects, he feared.
Under these circumstances, the CESC decided not to go for renewables in a big way at least for now and instead will focus on more franchisee distribution opportunities.
CESC has power distribution franchisee business in Kota, Bharatpur, and Bikaner in Rajasthan, Malegoan in Maharashtra besides being the license holder of Greater Noida and cash-cow Kolkata circle.
CESC has renewable projects with solar plant in Gujarat's Kutch generating 9 MW solar energy, Hydro Power Venture (Papu Hydropower Projects Limited & Pachi Hydropower Projects) in Arunachal Pradesh, generating 146 MW energy and Wind Power Operation, a 24 MW project at Dangi in Rajasthan.
Meanwhile, he said CESC has invested Rs 10,000 crore in the last five years in strengthening the distribution of Kolkata circle.
Speaking about the bifurcation of CESC into distribution and generation, Goenka said, "We have already applied and will wait until the West Bengal Electricity Regulatory Commission gives permission.
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