CESC keen to tap Nigerian energy market

Power utility CESC, a part of RPG group, is keen on making a foray into Nigerian energy market, that is ready to bite into the privatisation pie.

CESC Managing Director Sumantra Banerjee told PTI that the company had expressed interest in two private distribution companies carved out of the state-owned Power Holding Company of Nigeria (PHCN).

"CESC is not interested in making any major capital investment, but is joining the Nigerian privatisation party as a technical partner in the consortium with local partners."

"We have been approached by a few companies to join them as technology and support providers to run and manage a power unit or distribution company," Banerjee said.

However, the opening of EoIs has been delayed due to local elections, but shortly due-diligence activity would begin.

Though CESC officials were not forthcoming in explaining the reason to stay away from investing heavily, there is concern among investors on safety of investment in the country.

Being a technical partner CESC can reap the benefits of expansion without much risking its capital, they argued.

According to reports, beside CESC, other Indian companies like power distribution subsidiary of Gujarat government-owned Gujarat Urja Vikas Nigam and Adani Power among others are also believed to be in the fray.

The Nigerian government is currently undertaking a massive privatisation programme involving sale of a majority 51% stake in four thermal plants, three hydro electric plants and 11 distribution companies -- all carved out of the state-owned PHCN.

Nigeria had organised roadshows in Lagos, Dubai, London, New York and Johannesburg last January and February.

The Bureau of Public Enterprises had received a total of 331 EoIs which are currently being evaluated by a team of consultants which includes several leading global merchant banks.