CESC may foray into Nigerian power sector

RPG Enterprises flagship company CESC Ltd is likely to foray into Nigerian power sector. According to a top official some private power players from that country are already in talks with the company for technical support.

“We have been approached by two-three private companies from Nigeria to join them as technology and support providers to run and manage a power unit or distribution company. We are looking into it, though nothing has been finalised yet. Those firms are bidding for the distribution companies created out of the state-owned Power Holding Company of Nigeria (PHCN), which are going to be privatised,” said Sumantra Banerjee, Managing Director of CESC.

According to reports, the Nigerian government was undertaking a privatisation programme, which involves selling of stakes in four thermal generation plants, three hydro power plants and 11 distribution companies, all created out of PHCN.

However, the Kolkata-based company has not yet decided on whether it will be a joint venture or just sharing of technical knowhow. “These aspects will be decided later. About six circles under PHCN are going to be privatised and different companies who are bidding trying to tie up with us, as they are looking for an established distribution company,” he said. If works out, this would be CESC’s maiden overseas power venture.

CESC is India’s third largest power utility, with an installed generating capacity of 1,225 mega watt. It serves nearly 2.5 million consumers in Kolkata. It is planning to increase the generation capacity to 5,745 MW.