RP-Sanjiv Goenka Group may reorganise power business

The Rs 32,000 crore RP Sanjiv Goenka group is evaluating the possibility of re-organising its power business facilitation consolidation of generation and distribution units.

"The consultant is yet to give the final report and we haven't taken a final call," RP Sanjiv Goenka group chairman Sanjiv Goenka said.

"We see merit in having all generating units together. And distributions can come under a separate umbrella. I personally don't see the logic of my distribution business in Rajathan or distribution is Noida under separate companies," Goenka said.

I now need separate management and multiple CFOs or MDs for each of these businesses, there could be probably holding companies each for generation and distribution businesses, Goenka pointed out.

A group presentation shows six companies engaged into power business having close to Rs 10,000 crore revenue. They are: Haldia Energy, Dhariwal Infrastructure, Crescent Power, Noida Power, Surya Vidyut and CESC Ltd.

CESC has both generation and distribution rights in Kolkata, parts of Howrah and Hooghly in West Bengal, Noida in Uttar Pradesh, and distribution franchisee Kota and Bharatpur in Rajasthan.

Additionally, it has renewable capacity of about 100MW.

Goenka did not respond when asked if evaluation of re-organisation was restricted to power or other business.